1

A
REPORT ON
SUMMER INTERNSHIP
For
PANCHAMRUT DAIRY, GODHRA

Submitted to
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)
CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)
CHANGA

Prepared by

Under the Guidance of

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

AT.& PO. CHANGA – 388 421 TA: PETLAD DIST. ANAND, GUJARAT

July 2019
2

Acknowledgement

Table of Contents
1. Dairy Industry in India ................................................................................................... 8
2. Introduction...................................................................................................................... 9
2.1 Company Profile ..........................................................................................................11
2.2 Board of Directors........................................................................................................12
2.3 Milestone: .....................................................................................................................13
2.4 Vision.............................................................................................................................15
2.5 Objectives .....................................................................................................................15
2.6 Swot Analysis................................................................................................................17
…
Organizational structure ................................................................................................

2.7 Products and Brands ...................................................................................................18

2.8 Geographical Spread ...................................................................................................18

3. FUNCTIONAL AREAS ................................................................................................19

3.1 Marketing Function .....................................................................................................19
3.1.1 Organizational structure ......................................................................................19
3.1.2 Products .................................................................................................................19
3.1.3 Competitors ...........................................................................................................21
3.1.4 Market Segmentation and Target Market..........................................................21
3.1.5 Product Life Cycle ................................................................................................21
3.1.6 Demand Pattern ....................................................................................................22
3.1.7 New Product Development Strategy ...................................................................22
3.2 Production Function ....................................................................................................23
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3.2.1 Input-operation-output framework.....................................................................23

3.2.2 Production Capacity .............................................................................................23
3.2.3 Manufacturing System .........................................................................................24
3.2.4 Equipment’s...........................................................................................................25
3.2.5 Inventory Management ........................................................................................26
3.2.6 Quality Management Measures:..........................................................................26
3.3. Supply Chain and Logistics........................................................................................28
3.3.1 Organization Structure.........................................................................................28
3.3.2 Purchase/supply procedure..................................................................................29
3.4. Human Resource.........................................................................................................30
3.4.1 Organizational Structure .....................................................................................30
3.4.2 Human Resource Planning...................................................................................31
3.4.3 Recruitment ...........................................................................................................31
3.4.4 Selection .................................................................................................................32

3.4.5 Training and Development................................................................................... 32

3.4.6 Various Acts applicable to the Union .................................................................. 32
3.4.7 Performance Appraisal......................................................................................... 33
3.4.8 Employee Welfare Activities ................................................................................ 33
3.4.9 Computer Applications in HR ............................................................................. 33
3.5 Finance Department .................................................................................................... 34
3.5.1 Investment in Various Assets ............................................................................... 34
3.5.2 Long term and Short term Financial Management ........................................... 34
4. Financial Analysis .......................................................................................................... 37
5. Decision Making............................................................................................................. 37
6. My Learnings ................................................................................................................. 38
7. Overview of study .............................................................................................................. 40
7.1 Problem Statement....................................................................................................... 40
7.2 Introduction.................................................................................................................. 40
8.Literature Review ............................................................................................................... 40
9. Scope of the Research ........................................................................................................ 43
10. Significance of the Research ........................................................................................... 43
11. Need for Study.................................................................................................................. 43
12. Research............................................................................................................................ 44
12.1 Research Model.......................................................................................................... 44
4

13. Objectives of the Study .................................................................................................... 45

14. Hypothesis......................................................................................................................... 45
15. Research Methodology .................................................................................................... 45
16 Data Analysis..................................................................................................................... 46
1. Frequency Analysis of Demographic Profile:.......................................................... 46
2. Frequency Analysis.................................................................................................... 47
3. Frequency Analysis of Factors of packaging for products of Amul ...................... 48
4. Frequencies, Mean and Standard Deviation Analysis:........................................... 49
17. Factor Analysis................................................................................................................. 51
18. Findings............................................................................................................................. 59
19. Conclusion: ....................................................................................................................... 59
20. Bibliography ..................................................................................................................... 59

5
List of Tables
Table 2.1 Company Profile........................................................................................ 11
Table 2.2 Board of Directors..................................................................................... 12
Table 2.3 Milestone .................................................................................................... 14
Table 2.4 Objective .................................................................................................... 16
Table 2.5 Product and Brands .................................................................................. 18
Table 3.1 Investment in various assets..................................................................... 34
Table 3.2 Capital Structure....................................................................................... 34
Table 3.3 Cash Management..................................................................................... 36
Table 4.1 Ratio Analysis ............................................................................................ 37
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6
Figures
Figure 1.1 Amul
8
Logo ..................................................................................................
Figure
9
2.1 ......................................................................................................................
Figure 2.2 Organization Structure ...........................................................................17
Figure 3.1 Local Market............................................................................................ 19
Figure 3.2 GCMMF ................................................................................................... 19
Figure 3.3 Product ..................................................................................................... 19
Figure 3.4 Local Market............................................................................................ 20
Figure 3.5 GCMMF ................................................................................................... 20
Figure 3.6 Input – output framework ......................................................................23
Figure 3.7 Product Capacity .....................................................................................23
Figure 3.8 Butter ........................................................................................................24
Figure 3.9 Ghee ..........................................................................................................24
Figure 3.10 Milk .........................................................................................................25
Figure 3.11 Organization Structure ......................................................................... 28
Figure 3.12 Organizational Structure ......................................................................30
Figure 3.13 Human Resource Planning ...................................................................31
Figure 3.14
32
Selection ..................................................................................................
6

PART-1

GENERAL INFORMATION OF ORGANIZATION

7

1. Dairy Industry in India

As India is an agriculture-oriented economy and around 65% of its people still depending on
agriculture and still many farmers use the old method of farming using the cattle, cattle breeding is
done on a vast scale. The cattle not only provide the means for cultivation but also it provides milk to
the household.

India Ranks First in the world in terms of milk production. A present, the dairy sector has an estimated
consumer demand for milk and milk products at 26 billion, at around 8% growth per annum. The
organized sector processes about 13 million tons annually, while the unorganized sector processes
about 22 million tons per annum.

The government of India also helped the industry to develop by giving its full assistance and with the
launching of operation flood in the 7th 5 – year plans the industry got the needed impetus. At the time
if independence the growth rate of the industry was less at around 1% but with the help of the
government the growth rate increased to 4.2%.

The rapid growth the dairy processing industry is likely to lead a greater demand for value- added,
milk-based products, such as processed cheese, table butter, sour milk and ice cream. As per Dairy
Industry 2007, the private dairies are contributing double the Quantity of milk when compare to the
cooperatives in 2011. In the development of milk production, dairy cooperatives have a major role.
Many small dairy cooperatives are now full-fledged milk producers; AMUL of Gujarat is one of such
examples

HISTORY
The Co-operative Dairy Movement in India initiated with the establishment of AMUL in 1946.
Following that the co-operative district milk unions in different districts took shape.
During early 70’s, when the co-operative leaders of erstwhile; Panchmahal District, thought to have a
district co-operative milk union at district head quarter Godhra, the neighboring districts of
Sabarkantha, Kheda & Baroda had already the existence of well established co-op. dairy network.
8

On proposal of district leaders to have a separate milk co-operative union at Godhra; the initial survey
conducted by National Dairy Development Board; Anand revealed no possibilities of establishment of
an independent co-operative Milk Producers’ Union Ltd., at Godhra; due to very low productivity of
native milch animals and availability of insufficient quantity of surplus milk..But the leaders were
determined and committed for their goal to establish a milk union and under the inspiration & guidance
from late Shri Maneklal Gandhi, Late Shri Ratilal Trivedi & Late Shri Dahyabhai Naik, in May,1973 The
Panchmahal Dist.Co-op. Milk Producers’ Union Ltd., got registered under Gujarat State Co-op. Act.
1962.

Initially, due to lack of milk processing facilities in district, the milk procurement around 7000 kg per
day from about 40 village primary dairy co-op. societies was diverted to the neighboring milk unions of
Sabarkantha, Kheda & Baroda.
The then Chief Minister of Gujarat Hon’ble late Shri Babubhai Jashbhai Patel laid the foundation stone
for the establishing Dairy building at Godhra; in presence of prominent co-operative leaders of the
district; including late Shri Maneklal Gandhi; in the year 1977.
The milk chilling plant having capacity to chill 30,000 ltrs of milk per day was established in 1978 with
the financial help from Draught Prone Area Project, Panchmahals.
The Gujarat Dairy Development Corporation was asked to manage the affairs of the Milk Union.
The Co-operative leaders; supported by Shri Bhikhabhai Rayajeebhai Patel, Late Shri Tapubhai Parmar
and Late Shri Padmashankar Pathak, to persuade the milk producers of various villages for forming the
co-operative milk producer societies.

The Member of Lagislative Assembly from Godhra Shri Shantibhai Patel; and Asst. District
Registrar(Co-op.Societies) Panchmahals; Mr S.K. Pandya and Shri Mahendrabhai Upadhyay; the then
Executive Officer of District Co-op.
Union contributed a lot to instill the spirit of co-operation in the milk producers which helped them to
come together and unite to establish primary milk producer societies in the district.
The Milk Union was set to move ahead and had its first election to elect the board during the same year
Late Shri Mangalbhai Haribhai Patel was elected the first Chairman of the milk union.

Mr S.R. Patel of Gujarat Dairy Development Corporation was the first Chief Executive Officer of the
organization. At Patelwada; Godhra; a small office building was acquired on rent and from there; the
future plans for the development were plotted. At this stage; Mr Bhupendrabhai Parekh, Late Shri
Chandubhai Patel,Late Shri Rameshbhai M. Patel and Shri Krishnakant Upadhyay’s contribution is
noteworthy. Shri Chaturbhai M. Patel Shri Manubhai C. Patel and their team put untiring efforts to
encourage more and more milk producers to join co-operatives. Their contribution in organization and
sustaining the milk co-operative societies have been commendable.

Mr. Bhikhabhai Rayjeebhai Patel of Rabod took over as the next Chairman of the organization in 1977.
Then; the milk procurement was reached to 21000 kgs per day from 128 Dairy Co-operatives. Till;
March,1983; the Gujarat Dairy Development Corporation; managed the activities of the milk union;
which handed over the total administration of the organization to the elected body of the Panchmahal
Dist. Co-operative Milk Producers’ Union Ltd., on 1st April,1983.
During the years 1980-1994; Mr Babubhai Khatubhai Patel; as one of the youngest Chairman of the Co-
operative Milk Unions in the country; helped the organization to build an image of an outstanding and
fast growing organization.

During this period only in 1982; the organization was brought under NDDB’s ambitious Operation Flood
II project. Mr Babubhai Patel helped acquiring 10 acres of land from Govt. of Gujarat to establish a new
plant in 1992; the foundation stone of the new plant was laid by the then Chief Minister of Gujarat Late
Shri Chimanbhai Patel.
The milk processing capacity of the plant was increased from 30,000 to 60,000 kgs per day in 1984;
with the facilities of Ghee Packing Unit. In 1985; the milk processing capacity was further expanded to
100000 kgs per day, with commissioning of a powder plant having capacity of 10MT per day.
Under Operation Flood II Programme; the Technical Input activities in form of Animal Health and Animal
Breeding were initiated in 1982 under the guidence of milk union officials Dr. H.Y.Kantharia ,Dr.V.R.Jani
and Dr. G.S.Reddy of NDDB,Anand.
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Introduction
The Panchmahal District cooperative Milk producers’ Union Ltd. Was registered in 1973. The Union
is functioning at the Godhra and union has covered 1920 Revenue villages in PANCHMAHAL,
MAHISAGAR and DAHOD districts. As on March 31st, 2017 the union had organized 2145 Dairy
Co-operative societies (DCS) having the 2.78 Lakh Milk Producer Members.

The Panchmahal District Co-op. Milk Producers’ Union Ltd. is popularly known as “PANCHMAHAL
MILK UNION”. The dairy has been involved in Dairy Business through inspiring Animal Husbandry
-organizing the village level farmers Dairy Co- op. Societies (DCS) and farmers’ civic development
since 1973.

The Union – “PANCHMAHAL MILK UNION” has an average milk procurement of 9.82 Lakh KGS
per day with a peak procurement of 12.15 Lakh KGS the Union had sold 812 thousand liters per day
(TLPD) of milk in the urban market during the year 2016-2017

The Panchmahal Milk Union has built its own brand product ‘PANCHAMRUT’ Milk, Ghee,
Buttermilk within the District and selling its products like Milk, Ghee, Butter, Skim Milk Powder,
Flavored Milk and Shrikhand outside the District in the name of AMUL through GCMMF.

The
StateCo.op Consumer
Milk Marketing Federation
Dist. Milk
Co.op Union

Village
dairy Co.op

The
Producer

Future Scenario
 A Mediclaim policy will be implemented by the milk union, giving a financial aid of 25% in the
amount of insurance for the health security of the milk producers pouring milk to our dairy co-
operative societies.

 A calf rearing center will be established at Gaman Bariana Muvada Village of Shahera taluka
with a view to inculcating an ideal approach of calf rearing in the milk producers.

 A chilling centre will be established in Shehra taluka under clean milk production approach.
10

 From the next year onwards natural gas will be utilized for everyday requirement of energy at
our union’s milk processing plant.

 All the Co-operative societies have an AMCS will be connected to the main software of the
milk union: moreover the transaction of information regarding the business of milk will be
made on line.

 The data entry of the on-line monitoring of operations related to artificial insemination will now
be done by the village level AI Technician.

 A liquid nitrogen tank will be set up at Moti Sarsan chilling center.

 100 new AI centers will be set up in the tribal areas of Panchmahals, Dahod and Mahisagar
Districts.

 Our milk producers will be helped to buy 2950 milk animals under various governmental
schemes for financial assistance with low interest on the purchase of milch animals.

 Panchamrut parlours will be started on all the taluka centers within the Milk Shed Area.

 Milk packaging plant will be established in the city of Jabalpur, Madhya Pradesh.

 Milk adulteration detection machines will be set up at all chilling centers of the Milk union for examining
all type of adulteration in milk.

Company Profile
11

Name: Panchmahal District Milk Producers’ union Limited – Panchamrut

Dairy
Sector: Co-operative sector registered under the “co-operative society
Act”
Registered Office: Panchmahal Dairy, Lunawada road, Godhra, Gujarat.
Chairman: Mr. JethabhaiGhelabhaiAahir
Established year: 1973
Promoters: The Panchmahal District co-operative Milk producers’ Union Ltd.
Logo:

Table 2.1 Company Profile

AWARDS
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Year Award tittle Awarded By

2004 Udyog Bharati Award Indian achievers forum, New Delhi

2003 Certificate of excellence Shree Jayant Patil Honorable minister foe

planning and finance

2002 Export Inspection council of india Ministry of Commerce and Industry govt of
India

2002 Bharat Jyoti award Outstanding services achievements and

contribution

2002 Bhartiya Nirman Gaurav awards Business and economic society for trade

2002 Sarvshreshth udhog puraskar Business and economiv society for trade

2002 Udhyog Rattan Award The Institute of economic studies

1997 National Productivity council of Shree K.R.Narayan Honourable President of

india India

1996 Excellence award The Institute of Economic studies, New delhi

PLANT LAYOUT
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Route Vehicles Ready For Unloading of Milk Cans At Dairy Plant Dock

Unloading of Milk Cans

Visual Inspection of Milk.

14

Society Wise Computerized Milk Weighing

Cleaning of Milk Cans

Control Panel For Operating & Cleaning System.

Packing of Milk Pouches

15

Butter Packing Section.

Packing of Milk Pouches

Butter Packing Section.

16

Ghee Packing

Bottled Flavoured Milk Production

Geographical Spread

Name of the city

Godhra Dahod Lunawada Halol Santrampur Fatehpura

Jhalod Limkheda Limbadi Piplod Santroad Dev. Baria

17

Garbada Vejalpur kalol Timba road sukhsar Other

Mission and Vision

I. We at Panchmahal Dairy pledge commitment for the uplifment of our member producers by
continually putting tireless efforts through delighting our customersat all levels. We strive to
achieve these goals through
II. Procuring excellent quality of raw milk, ingredients, packing material etc and processing in
hygienic conditions to deliver excellent packed milk and Milk products to customers.
III. Continuous improvement in the quality of our processes, products and services
IV. Development of dedicated and devoted workforce
V. Compliance of statutory and mandatory requirements
VI. Adoption of high food safety standards
VII. Communicating and made available quality and food safety policy on request to interested
parties. We shall put all our efforts to be the best if not the biggest

.
18

Board of Directors
Below is the list of Board of Directors of Panchamrut Dairy:

Sr. No. Name Designation

1 Shri JethabhaiGhelabhaiAahir(Bharwad) Chairman
2 Shri Chauhan ArjunsinhNarvatsinh Director
3 Shri Gohil ParvatsinhShanabhai Director
4 Shri BariaMaganbhaiSomabhai Director
5 Shri Chauhan MadhavsinhBharatsinh Director
6 Shri Chauhan JuvansinhLalsinh Director
7 Shri Patel Ambalal Kalubhai Director
8 Shri Patel RamabhaiNaranbhai Director
9 Shri MaliwadRanchhodbhaiAkhmabhai Director
10 Shri NagotaKalubhaiPujabhai Director
11 Shri Parmar SadiyabhaiDalabhai Director
12 Shri BharwadBharatbhaiRanchhodbhai Director
13 Shri BariaKhumansinhRatansinh Director
14 SmtLilabenBharatbhai Patel Director
15 SmtBariaShardabenKevalsinh Director
16 SmtPargiBhartibenMahendrabhai Director
17 SmtBhabhorGajibenKanjibhai Director
18 SmtBariaJashodabenRameshbhai Director
19 Shri Jayen Mehta Representative of GCMMF
Ltd.,Anand
20 Shri Meenesh Shah-D.G.M.(Fin.) Representative of NDDB,Anand

21 Shri S.L. Pathak I/c Managing Director

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Milestone:

Below mentioned is the milestone of the company since establishment. The organization has achieved
success through years.
Year Particulars
1973Registration of milk union under Gujarat co-op. Act, 1962.
1975Milk union Administration was taken over by Gujarat Dairy Development
Corporation (GDDC).
The first election was held to elect the Board of Milk Union.
The Then Chief Minister of Gujarat Hon’ble Late Shri Babubhai Jashbhai
1977Patel laid foundation stone for establishing Dairy building at Godhra, in
august presence of the then Panchayat Minister of Gujarat Hon’ble Late Shri
Maneklal Gandhi.
1979Milk Chilling Plant of 30,000 LPD capacity commissioned at Godhra, by
GDDC.
1982Tech. Input Services Namely Animal Health & Artificial Insemination started
under OF-II.
1983The Administration of District Co-op. Milk Union was handed over to the
elected Board, by GDDC
1984The chilling plant capacity was expanded from 30,000 to 60,000 kg per day.
Ghee packing started.
1985The milk processing capacity of plant was expanded from 60,000 kg to
1,00,000 kg per day. The Powder Plant having capacity of 10 MT per day
was commissioned.
1993Dairy Herd Improvement Programme Actions (DIPA), a field progeny testing
programme launched in collaboration with Baroda & Sabar Milk Unions
under the technical guidance of NDDB.
1994Milk Union got registered under Milk & Milk Product order (MMPO), Govt.
of India. A Milk Chilling Plant at Chopada(Lunawada) commissioned to
process 50,000 kg milk per day. Cluster Concept to increase coverage under
Artificial Insemination was adopted.
1995Liquid Milk Marketing in brands of Amul Gold & Amul Shakti started
through GCMMF.
First consignment of Amul Ghee exported to Dubai through GCMMF.
A Concept of Total Quality Management (TQM) adopted.
Milk Union got certification of Merit from National Productivity Council of
1996India, for productivity performance during the year 95-96.
Milk Union got certificate of Excellence by Institute of Economic Studies
(IES), New Delhi for excellence in productivity, Quality Innovation &
Management.
Milk Union received Udyog Ratna Award
1997Milk Union started production of Table Butter under Amul Brand
Milk Union received National Productivity Award
The then Chief Minister of Gujarat Hon’ble Keshubhai Patel laid foundation
stone for establishing Milk Chilling Centre at Limadi(Ta: Zalod).
1998The Milk Union started village Self Leadership Improvement Programme
known as Internal Consultant Development Programme through GCMMF.
Milk Union got Udyog Ratan Award.
20

13

1999The Commercial Production of ‘Panchamrut Goras’ initiated.

The Commercial Production of Amul Gulab Jamun Mix started.
2000The Milk Union obtained ISO:9001 & HACCP certification from Quality
Assurance Service, (QAS), Australia.
2001Limadi Milk Chilling Centre having capacity to process 30,000 kg per day
commissioned.
2002Initiation of Shivrajpur Bulk Milk Chilling Unit, having the capacity of 1000
LPD.
2003The Milk Chilling Capacity of Chopada Chilling Centre was doubled from
50,000 kg per day
Panchmahal Cattle Feed Factory having capacity of 100 MT per day,
inaugurated by Hon’ble Chief Minister of Gujarat Shri Narendrabhai Modi.
2004Milk Union got Udyog Bharati Award by India Achievers Forum, New Delhi.
Milk Union got Bhartiya Nirman Gaurav Award by Business & Economic
Society for reforms for Role in the process of Economic Reforms.
The Milk Union started installing Bulk Milk Cooling Unit at Village Dairy
2005Co-operative.
Milk Union got Recognition Certificate in linking tradition & technology for
Dairy Farmers by World Bank, Washington DC.
The Milk processing capacity of the Milk Union’s Plant expanded
2006from 2,00,000 kg per day to 4,00,000 kg per day.
The commercial production and distribution of bypass cattle feed started.
The production and distribution of Area Specific Mineral Mixture started
Started implementing Fertility Improvement Programme (FIP) under
technical guidance and financial support from GCCMMF Ltd;Anand.
2007Acquired 25 acres of land of Moti Sarsan village of santrampur taluka for
establishing Vegetable de-hydration plant for ginger,garlic and onon on co-
operative basis.
The production and distribution of chelated mineral mixture.
The milk union’s peak procurement crossed 5.5 lakh kgs of mik per day.
A bulk cooling unit of 10000 liters capacity commissioned at Pipero (Ta:
2008Dhanpur)
Modified DIPA-a field progeny testing programme implemented with the
help of NDDB.
2009Modified DIPA-a field progeny testing programme implemented with the
help of NDDB.
2010Started Sale of Liquid milk at Mumbai
2011Started Milk Procurement from Rajasthan
2012Establishment of Moti sarsan chilling centre (1LLPD)
2013Establishment of Milk Packing Unit at Ujjain -MP (1LLPD)
2014Expansion at Godhra Panchamrut –III Plant (Milk Processing Capacity
Increased to 10 LLPD) Started Liquid milk sales at Raipur
2015Establishment of Shrikhand Plant at Godhra Panchamrut –III (Capacity 10
MT/Day)
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Establishment of Narukot chilling centre (50KLPD)

Establishment of Flavoured Milk (Pet) Plant at Godhra Panchamrut –
2016III (Capacity 24000 bottel /HRS)
Work started for Establishment of Milk Packing Unit at Mumbai 7.5LLPD)
Table 2.3 Milestone

1st tier structure - Primary Village Co-Operative Society

 An associate degree and pattern village dairy farm cooperative society is made
by milkproducers.
 Any producer will become dairy farm Cooperative Society (DCS) member by
shopping for a share and committing to sell milk solely to thesociety.
 EveryDCSencompassesamilkassortmentcenterwherevermemberstakemilk
daily.
 Every member’s milk is tested for quality with payments supported the
proportion of fat andSNF.
 At the tip of every year, a grip of the DCS profits is employed to pay every
member a support bonus supported the amount of milkpoured.
 This acts as an important link for varied productivity improvement and
development programs offarmers.
The 2nd Tier – District Union
 A District cooperative Milk Producer’s Union is closely-held by dairy farm
cooperativesocieties.
 It is a union of primary village co-operative societies amongdistrict.
 The union buys all the societies milk, then method and markets fluid milk and
merchandise.
 A district Union provides a spread of inputs and services to village cooperative
societies and their members: feed veterinary care, insemination to sustain the
expansion of milk production and therefore the cooperativesbusiness.
 Union workers train and supply consulting services to support village
cooperative societyleaders.
The 3rd Tier - The State Federation
 The co-operation milk producer’s unions are an apex selling body chargeable
for selling of milk and milk merchandise of memberunions.
 TheFederationplaysajobwithintheoveralldevelopmentofthedistrictunions
federate tothat.
The main functions of the village dairy co.-operative society are as follows:
 Collection of surplus milk from the producers of the village and the payment
based on quality andquantity
 Providing support services to the members like veterinary first aid, artificial
insemination services, cattle feed sales, mineral mixtures sales, fodder and
fodder seed sales, conducting training o animal husbandry anddairying.
 Selling liquid milk for local consumers of thevillage.
Supplying milk to the District MilkUnion
22

Objectives
The objectives of the union are to carry out activities for their economic development
of the milk producers by or gaining effective production, processing and marketing
milk and milk products.

Purchase, pool, process, manufacture. distribute and sell commodities from

01 the members of the affiliated societies and private sources without affecting
the interest of the members.

Note: In case of the Union undertakes production, processing and marketing

of agricultural commodities other than milk and milk products, it will obtain
the prior permission of the Registrar.

A1 02 Own or hold on lease or otherwise, movable or immovable properties;

Purchase, process, manufacture, distribute and sell cattle feed, dairy and
03
food machinery, tools and instruments, dairy and food packaging materials.

04 Encourage growing of fodder by the members of its affiliated societies.

Give veterinary and artificial insemination services and provide medicines

05
and undertake cattle insurance work.

06 Own herd of cattle for breeding work.

07 Buy animals on behalf of members of the affiliated societies.

08 Make arrangements for transport of commodities.

Organize new Co-operative Societies and develop affiliated ‘societies to the

09 utmost and impart Co-operative knowledge amongst members and its
application to business methods.

Render technical, financial, administrative and other necessary assistance to

10
other milk schemes.
23

11 Organize and encourage savings schemes.

Settle all matters of common interest of the affiliated societies and to further
12
these interests.

13 Carry on co-operative propaganda.

Generally, to carry on such other activities as to push and further the above
14 objects and to do all such things as are incidental or conducive to the
attainment of the above mentioned objects.

With a view to organize and co-ordinate the activities of the primary

societies affiliated to the Union, the Union shall advise, guide, assist,
01
rectify, control or take over their management partially or fully when
B necessary and may appoint an administrator under section 81 of the Act.

Union may organize supervision of the affiliated societies and for that
02 purpose may fix supervision charges to collect with the permission of the
Registrar and collect.

Establish a Research and Development Association having independent

01 existence, to contribute to its funds, and to raise funds for the same from the
members of the Union.
C
To create funds and trusts for the benefit of the employees to support and to
assist the same. The union shall approach the Registrar for approval
02
regarding the contribution by Union and employees and to implements the
same as per rules framed under the laws in force.
24

ORGANIZATIONAL STRUCTURE
25

SWOT ANALYSIS
Strength
 Continuous improvement in the quality of our process, product and services
 Make arrangements for transport of commodities
 Planning to market liquid milk in the city of Mumbai
 The ability to provide Best quality to the customers in low cost
 Increases Productivity
Weakness
 Absence of Home delivery
 Limited to certain areas
 Can’t afford by poor people
 Can’t store more time in different weathers
 Noise may be a concern
Opportunities
 Ability to expand to other markets surrounding panchmahal
 Loyal consumers are likely to try new services offered by dairy
 No other Product can complete with high quality products
 Advertising on board will increase revenue
 Production rise causing a increase of customers
Threats
 Government may not fund the company
 Inflation will increase costs, which are passed on to customers
 Union operated staff has a risk of strike
 Noise pollution may concern people
 Existing brands might introduce an upgrade in their services and quality and take customer
away from us
 Inflation will increase costs, which are passed on to customer.
26

DEPARTMENT INFORMATION

Finance Department
Investment in VariousAssets

Particulars Amount (Rs.)

Land and Building 6,52,68,38,388
Investment 12,60,88,000
Current Stock 2,25,61,25,146
Receivables 85,00,13,518
Cash and bank balance 1,35,53,67,064

Long term and Short term FinancialManagement

 Capital Structure and its variation overtime
 Capital structure is the mix of financial securities used to finance the
firm.
 The value of firm is defined to be the sum of value of firm’s debts and
the firm’sequity.
 Panchamrut Dairy is a cooperative organization, therefore there is
nothing like market value of share whenever Panchamrut need funds it
issues adequate number of share, but only to its shareholders
rmembers of societies and not to the others.
 The capital structure of a firm would generally denote the ratio of own
capitaldotheborrowedcapital.Thecapitalstructurethus,indicateshow the
capital is been rose.
 Capital Structure
Particulars Amount (Rs.)
Debt 4,74,19,42,416
Equity 5,48,24,400

Factors influencing Capital Structure

 Business risk
 Company tax exposure
 Financial flexibility
 Management style
 Growth rate
 Market condition
27

 Cost of fixed assets

 Size of businessorganization
 Nature of businessorganization
 Elasticity of CapitalStructure

Sources ofFinance
 Federation makes payment to Panchamrut dairy on dailybasis
 FD from member societies is major source offinance
 Share of Amul is not for public but only for the members of Amul
society
 Cash credit, overdraft and short term working capital loan frombanks
Reserves andSurplus

 OperatingCycle

Stockorder Stockarrives finishedgood Cashreceive

Inventory PeriodAccount Receivable

Account Payable
28

Operatingcycleisthefirm’stimedurationrequiredtoconvertsalesaftertheconversion of
resources into inventories into cash. This operating cycle of manufacturing firm
involves three phases acquisition of resources such as a raw material, labor and power
etc.

Manufacturingoftheproductwhichisincludedinconversionofrawmaterialintowork in
progress into finished goods. Sale of the product is either for cash or credit basis.
Credit sales create account receivable forcollection.

Phase 1- Firstly, the company purchases the raw material and then conversion of raw
material into WIP, finished goods and finally the transfer of goods to stock at the end
of the manufacturing process. In the case of trading companies this phase is shorter as
therewouldbenomanufacturingactivityandcashisdirectlyconvertedintoinventory.

Phase 2- In this phase, the inventory is converted into receivables as credit sales are
made to the customers’ firms which do not have the phase 2 of the operating cycle.
After that the firm earns the receivables in the form of cash. From that cash the firm
pays the account payables to the creditors.

 Working CapitalManagement
Working capital refers to the difference between current assets and current
liabilities. Net Working Capital of Panchamrut Dairy for the financial year
2017-18is73,06,47,976rupeesrespectively.Itshowsthatcompanyisinagood
position. Panchamrut makes most of its sales to GCMMF on credit basis. To
meet with this working capital requirement, Panchamrut has got certain
provision and short-term investment. From the monthly sale, GCMMF gives
return to Panchamrut from which it covers’ up its short-termexpenses.

 CashManagement
 The management of cash is done on wide bases in all areas.
 Thecirculationofcashstartsfromthedebtorstodirectdealers.Thefund is
collected from all side that is from debtors to dealers.
 Every day the cash payment is been done with very huge amount.
 The flow of cash is done in such a way that there should not be
delaying payment.
 Daily cash comes from the bank, marketing federation, direct sales etc.
daily plans is being made for flow of funds withCFO

The cash payment is done by NEFT up to 2 Lacs and RTGS (more than 2 Lacs) if it is
very huge amount. If the cash is not available than they use the bank overdraft. The
certainlimitsaregivenfortheutilizationofoverdrafttocompletethetransaction.Ifthe
cashcomesthenallthemoneyiscreditedtooverdraftsothattheymustpaylessinterest on it.
All cash is being transfer to OD from the current account due to which they can utilize
the source of money whenever is required.
29

Different accounts are made for the transaction of cash. If after all this there is excess
cash is available Amul used to invest in short term fixed projects.

Major payments are fixed in times i.e. in 10 days, in months 3 times, 10-15 days etc.
For creditors cycle of cash management is 30 days and for debtors it is for 7-10 days.

Name of the Payment Duration of Payment

Milk Purchase 10-11 days
Milk inward transport 15 days
Cattel field transport 15 days
Raw Packaging 15-30 days
material

 Panchamrut Follows Accrual Accounting System.

Financial Analysis
Ratio Analysis

Ratio Formula 2017-18

Gross Profit Ratio Gross profit /sales*100 0.444
Dividend Payout Ratio 0.15
Current Ratio Current Assets/ Current 1.2
Liability
Debt-equity Ratio Debt/Equity 5.27
Interest Coverage Ratio PBIT/ Total Interest 1.41
Stock Turnover Ratio COGS/ Average Stock 13.80
Fixed Assets Turnover Ratio Net Sales/ Net Fixed Assets 3.20
30

Marketing Department

Marketing Function

Local Market

Dispatch from dairy Retailers Customers

GCMMF

Dispatch From Dairy Distributor Retailers Customers

Products
Brands Products

Ghee

Curd
Butter
Milk
Amul
Shrikhand
Masti
Flavored Milk
Powder
Ghee
Panchamrut
Butter milk
31

The dairy has two markets: Local Market and through GCMMF (state Co-op.

milk union) Local Market

Local Market

Locations
PanchmahalDahod
Mahisagar

Amul Panchamrut
AmulDahi
Packaged milk Ghree,Butter
32

Through GCMMF:

AmulGhee

Amul Butter

AmulPowder
Based on
Through
Contract with Amul
GCMMF
AmulMilk

Amulshrikhand

Amul Flavoured
Milk

Competitors
Generally, the most common competitors of amul is loose venders viz “dudhvala” of
every village who are selling their milk at lower cost than amul. For, another product
the competitors are as follows:
 Butter - Nestle, Gowardhan, Mother India, Britania
 Ghee – Britania, Gowardhan
 Curd – nestle, Gowardhan,Danone

Market Segmentation and TargetMarket

Itisprocessinmarketingofgroupingamarket(i.e.customers)intosmallersubgroups.
Thesemarketsareoftentermednichemarketsorspecialtymarkets.Thesesegmentsare
homogenous in their attitudes about certain variables.
Following are four sub activities performed by Amul while targeting is:

 Defining the abilities of the product and resources needed to enter in market
 Analyzing competitors on their resources and skills
 Considering the company’s abilities compared to the competitors’
 Deciding on the actual target markets
Amul has also its own marketing concept. Amul targets all type of customers like
babies, children, youngsters and old age customers’ too. Amul try to satisfy needs by
33

providing good quality products.

The market segmentation of Amul Milk is done according to the fat wise:
Market Segmentation by Fat Target Market

High Fat Youngsters

Low Fat Children and old age group

Product Lifecycle

As we see the Product Life cycle of the Products of Amul and Panchamrut, it falls
under the Maturity stage as they are well known worldwide.

Demand Pattern

 AsitfollowstheretailStructure,thedairyitselfdividethemarketintodifferent
clusterinPanchmahal,DahodandMahisagar.Whereitdistributesthepackaged
Amul milk ever day in the morning and in the evening.
 The retailer messages the Quantity as per their demand the dairy delivers them
the milk. The Quantity they message is directly entered into their software.
 As amul is well known brand and available worldwide. The products named
under Panchamrut are available only in Panchmahal, Dahod and Mahisagar
District only.
 The sale of milk is continuous but for other products its mainly depend upon
the season.

New Product Development Strategy

 Mostly all the marketing is being done by GCMMF but Amul performs the
marketing research mainly to launch new products in the market.
 The purpose is off checking the validity of the new products in the market for
the local new.
 AmulandPanchamrutDairyconductthemarketsurveybyappointingbusiness
administration students for conducting the market survey. Extending policy of
the new product launch.
34

Human Resource Department

The success of any organization depends upon personnel department of the

organization.Theorganizationmaynotachieveitsgoalwithoutthephysicalandmoral
support of their employees. The milk union provides many facilities to its employees.
It is also having an officer concerned with the matter of statutory and non-statutory
welfare & social provisions which are mentioned under the labor law.

All the HR activities decisions such as recruitment, selection, training, promotion,

transfer, remuneration, and many more are taken by the business partners (i.e. such
decision are centralized). It is one of the important functions of middle manager in
motivating, inspiring and leading their subordinates. This also includes building a
team and supporting any team member when necessary.

The objective is to attain maximum individual between employer and employees and
effective molding human resources as contrasted with physical resources. Personal
(human) resource management plays a very important role for any organization. The
firm having all types of resources like machines, material, money, information etc. but
will not be success in the business without effective manpower.

Human capital is the greatest assets of the business enterprise and manpower
managementisthemostimportantandacrucialjobbecausethemanaginggroupisthe heart of
the company. Human resource department plays important role in establishing good
relation and harmony among all.

Human Resource Planning

 35

Demand
Forecasting

Monitoring Supply
andControl Forecasting

Determining
Citionplan
HR

Human resource planning means to place right people at right time at proper place.
Humanresourceistheprocessofforecastingfuturehumanresourceoftheorganization and
determination of the organization as how the organization utilized existing human
resource to keep in mind the future requirement of the organization.

Recruitment
Recruitment is the process of searching for and obtaining application to build a pool of job seekers
from whom the right people for the right job may be selected. Following are the sources of
recruitment:

1.Internal Sources
Internal sources mean whenever any vacancy occurs, anybody from the organization take place on that
vacancy. In internal sources dairy is concern with the three methods of recruitment.
They are as under:
 Promotion
 Demotion
 Transfer and lay off

2.External Sources
•This source lies outside the organization. In Panchamrut they consider following sources for recruitment

 employee exchange
 Direct correct with employee
 Advertising in newspaper, employment news, etc
 36

Both the sources are adopted the dairy, but mostly the use of adopt internal sources.

For recruitment the panchmahal district co-operative milk producers union ltd is mostly concern with
three methods which are as follow
 Direct method
 Indirect method
 Third party method

Selection
Selection procedure is concerned with securing relevant information about applicant. The main
objective of selection process is to determine whether an applicant meets the qualification for a
specific job and choose the application that is most likely to perform well in the job.

Approval
Vcancyin from MD for advertismentCollection
any Department of Apllications
Shorting Witten Personl
Resumes Test Interview Selection

a) Application

b) Prilimary interview

c) Psychological test

d) Final interview

e) Reference checking

f) Physical examination

g) Placement

The selection committee consists of following members.

 Respective department head

37

 Board of directors

 A member of gcmmf (Gujarat co-operative Milk Marketing Federation)

 A member of NDDB ( national dairy development Board

Training and Development

Training and development is a subsystem of an organization. It ensures that randomness is reduced
and learning, or behavioral change take place in structured format. Training is the process where the
work-related knowledge, skills and attitude are given to new employees, by which they are aware
about the policies rules and increase technical and manual efficiency and create responsibility.
Panchamrut has accepted the following methods of Training.

•Induction Training (Orientation)

•On-the-job Training
•Off-the-job Training

Various Acts applicable to the Union

•Factory Act,1948
•Trade Union Act,1926
•Contract Labor Act,1972
•Apprentice Act,1961
•Minimum Wages Act,1948
•Bonus Act,1965
•Gratuity Act,1972
•Provident Fund Act,1952
•Payment of Wages Act,1936
•Workman Compensation Act,1923

Performance Appraisal
Performance appraisal is the process of evaluating the performance and qualification of employees in
the terms of the requirement of the jobs for which they are employed. Promotion of the company is
based on Performance of the Employee. The Employees are measured by Performance Appraisal.

Employees at top level and middle level are promoted every 5 years based on their performance and
employees at bottom level are promoted every 6 years on the basis of their performance.

Employee Welfare Activities

•Canteen

Quarter facility
•Rest room and changing room
•Comfortable work Atmosphere
 38

•Uniforms
•Emergency Van and First Aid Box
•Shoes, Safety Shoes and Protecting Clothes
•Shift Allowances
•Educational Allowances
•Festival Advances
•Leave Travel concession
•Panchamrut Memento
•Cultural Activities
•Get together Programme
•Employees Co-op. Credit Society
•Housing and House Facility loan

Computer Applications in HR

•For Salary – database and SAP

•For Attendance – face reader
•For data storage and other functions – Ms. Office, Ms. Excel, Ms. Word and other Microsoft applications

Production Department

Individual Member

VillageSociety

DistrictCo-operative
Milk Producers'

GujaratCooperativeMilk
Marketing Federation
39

Production Capacity

Products Production Capacity

Liquid Milk 9 LLPD
Butter 60 MT
Ghee 20 MTPD
Curd 2.5 MTPD
Flavored Milk 20 MTPD

The production Function relates maximum amount of output that can be obtain from a
givennumberofinputs.Itistheresponsibledepartmentinanyorganizationconverting raw
material into finished goods through manufacturing process. There are 3 plant facility
of manufacturing. The total capacity of all the plant for milk procurement is 9 lakh
liters per day.

Manufacturing System

The manufacturing system of the entire product is different. The process remains same
till preparation where for packaging it differs.

Butter

Raw Milk Pasteurization Cooling Ageing

White butter + salt addition + color

Churning Plate heat exchanger Cream balance tank

Packaging Machine
 40

Ghee
Cream storage tank – 30-40 Fat
Butter making m/c Churning White butter –
80 to 85 Fat

Ghee clarification Settling vat Kettle Melting process

Ghee storage tank-38to45 c

Packing m/c

Milk Flow Pattern and Milk Processing

Rural farmer using milking

InvolvementofWomen
machine for milking
Membersinco-operative,
cross bred cow. DairyBusinessatRural Level
Rural woman milking buffalo

Atribalwomanmilkco- operative society operative automatic computerized milk weighingandfattesting system

InvolvementofWomen Membersinco-operative, DairyBusinessatRural Level
Milkflowatruralbased co-operative

Society people loading the milk cans in milk route vehicle of milk union.
Milk Tanker being UnloadedatDairyDock. Visual Inspection of Milk.

Control Panel ForOperating & Cleaning System

Society Wise ComputerizedMilkWeighing
PackingofMilkPouches
41

Equipment’s

 Pasteurizer
 Butter making Machine
 Separator
 Speedometer
 Tanks

Inventory Management

Inventory management is very necessary for the firm because if the firm has lesser
investment inventory, this would lead unavailability of materials when required which
would ultimately lead interruption in production process. Similarly, if the firm has
higherinvestmentininventorythiswouldleadtolockingupoffundsininventory,thus
reducing the working capital. Hence, the inventory should be properly managed in
every organization.
At all the plants of Amul inventory is classified mainly in five heads and they are:

1. Raw Milk Stock

2. Raw Materials: It is a major input in the organization which is used in the
production activity. Its quantity will be determined by rate of consumption and
the time required getting the supplies.
3. Stock in Progress: In this stage the stock is in between materials and finished
goods form. The quantum of work-In-Progress depends upon the time taken in
manufacturing process.
4. Finished Goods: It means that goods are ready to consume. Its stock provides
buffer between production and market.
5. Scraps
42

Quality Management Measures:

 TQM
 ISO
 HACCP

1. Total Quality Management

The world is becoming single market place. It is imperative that we produce dairy
products conforming to the international standards; at internationally competitive
prices. So, to meet the challenges company has adopted TQM Concept. The Eicher
Consultancy was hired for the implementation of TQM in the organization; under the
guidancefromGujaratCo-operativeMilkMarketingFederation(GCMMF)Ltd.,inlate
1995. The Appreciative inquiry was conducted in Oct.1996 with objective to learnand
leverage the learning from the past successes for the future and to create a positive
energy among the employees. The Appreciative Inquiry was aimed to know the
facilitating & restraining factors for change and what had worked well in the
organization. The critical mass of employees; supportive for change; was identified.
Organization culture was shaped by storage; rituals and the symbols found in the
organization Following the necessary board resolution and agreements; the top
management personnel of the organization were imparted the training on TQM
awareness. The similar programmed was conducted for the middle level managers and
linemanagers.Tocascadetheawarenessandconceptualfactsofprogram;theTrainers’
Training Program was conducted to train 20 employees. They then shouldered the
responsibilities to train rest of the staff of the milk union. The
visionMissionWorkshopwasconductedduringJune;1999tohavetheSWOTanalysisof the
organization; involving all. the Stakeholders of the organization the successful
implementation of Total Quality Management (TQM) has helped the Organization in
delighting the internal and external customers by meeting their expectations on a
continuous basis through everyone involved with the organization working on
continuousimprovementinallspheres,viz;products;servicesandprocessesalongwith
proper problem-solving methodology. Total Quality Management Concept encourages
individualcreativity.Ithasatremendousimpactonwhateverisdoneinternallytomake the
customer happy externally.
43

The following Activities were conducted under TQM

 Housekeeping
 Kaizen
 Small Group Activities(SGA)

2. ISO: AS/NZS ISO9001:2000

PanchamrutDairyhasbeenaccreditedandsustainingcompliancewiththestandardsof
ISO 9001-2000 and CODEX HACCP (Hazard Analysis and Critical Control
Points)
since2000.TheQualityAssuranceServices(QAS)nowknownasSAIGlobalPvtLtd.,
has been helping the organization to implement; sustain and modify the
Quality Standards as per changing requirements. Every year; periodically
Internal Audits (at least twice) and the external audits twice in a year are being
conducted to help keeping the system in place, satisfactorily.
3. HACCP (Hazard Analysis Critical Control Points)
HACCP audit is carried out with ISO audit schedule. The milk union has been
sustaining compliance with the new revised standards of Codex HACCP
9000:2002,
sincetheyear2000.TheSynergybetweenthesestandardsassuressynchronizedcontrol
of all elements in food chain ensuring considerably safe; healthy and superior
quality dairy and food products.

Supply Chain and Logistics

Milk Producer

VillageDairy
Co.op.
Distributor Retailer Consumer

District Union

Retailer Consumer
44

 The farmer is a milk producer and the member of the village dairy
 Village dairy collect the milk from the milk producer and send to the
district union which is IS certified.
 The district union dairies are like Baroda dairy of Baroda, Sumul
dairy of Surat, Panchmrut dairy of Panchmhaletc.
 GCMMF collects the final product from all dairies and then
selling and marketing is done byGCMMF.
 Distributor collects the goods from GCMMF and further they will
sell to wholesaler.
 Same way wholesaler will sale to the retailer, retailer will buy the
product and will sell to the customer.

Purchase/supply procedure

The following procedure is supply procedure, how the goods are being supplied
to the other

 GCMMF gives yearly plan to Amul on monthly basis how to supply,

where to supply and how much to supply the goods at what time.
 The user department checks the requirement of the goods and then it
makes the purchase requisite.
 The goods are being verified and then the PR (press release) is been
made after making PR, purchase order is being made and purchase order
is being taken.
 After taking the purchase order to vendors the documentation is been
done i.e. the legal documents of vehicle are been checked.
 Than the vehicle is been unload, the weight of vehicle is being check and
then after it the physical test is been checked.
 The goods are being verified and then GRN (Goods Received Note) is
been made.
 After all the systematic procedure the goods are ready to supply.

Decision-making
 Panchmahal District co-operative milk union has 18 Board members.
 The meeting of Board Members is Held Quarterly.
45

 Decision regarding the budget, Shareholders and other major issues are
taken in the Meeting.
 In case of emergency the notice of 7 days is given for the meeting.
 CompanyalsoconductsthemeetingofAnnualGeneralMeetingwhichisyearly
based.
 The Company coordinates with every department. The entire
departments are internally coordinated, and the function of the
department works smoothly.
 All the major decisions are taken by Managing Director of the company.
 In case of any internal issues arrives within any department the Head of
Department and Managing Director plays a vital role in resolving it.
 As we know that Amul is well known and established brand name in
milk industry, the future is bright, and Panchamrut Dairy is well known
District co- operative milk union which provides the dairy products in
the district of Panchmahal, Mehsana andDahod.
 To conclude that the future is bright of the company as it covers the rural
and semi-rural area of India.

MyLearnings
 I learned many new things during the period of eight weeks of internship
from Panchamrut Dairy. I observe that theoretical and practical
knowledge is totally different.
 I was appointed under marketing department in the company, so I
started learning about Time Management. As everyone in the
company was very punctual about the timing. So, on the very first day
I was told to be on time.
 I also learned how to communicate in the work place with others. How
to do work with co-workers.
 Apart from this I also learned how to take a Decision in an
Organization as there are many departments like HR, Finance,
Marketing, Production, supply chain and Logistics and some other
departments. All the Departments are inter-related with each other and
it is important to manage the entire department at one time and if there
is problem in any of the department in the organization, so it will
directly affect all the other departments.
 Apart from all this I maintained a good contact within organization
46

which would be helpful for me in the future.

PART -2

PROJECT STUDY

Overview of the Study

Problem Statement

A study on “employee job satisfaction and organization commitment in Panchamrut Dairy

Introduction

Employee satisfaction is a function of motivators which contribute to job satisfaction and

hygienes which lead to Employee dissatisfaction. Employee satisfaction is a positive
emotional response to a job situation resulting from attaining which the employee wants and
value from the job. The term of job satisfaction refers to the attitude and felling people have
about their work. Positive and favorable attitude towards the job indicate employee
satisfaction. Negative and unfavorable attitudes the job indicate job dissatisfaction. Employee
satisfaction and organizational commitment of the employee is very important to increase the
motivational level of the employee and reduce the stress and increase the productivity on an
organization. Organizational commitment is determined by a number of factors including
personal factors i.e. age, tenure in the organization,disposition,internal and external control
attributions. Organizational factor such as job design and leadership style of one‟s supervisor
and non organizational factors. All this things affect subsequent commitment. The way
academic institutions perceive motivation influences their level of satisfaction and
commitment. While job satisfaction and commitment have been the topic of many studies,
but this study is presentsnew information and a new perspective, describing job satisfaction,
motivation and commitment of teaching and non teaching staff particularly in the context of
the business schools. No one can deny the importance of job satisfaction in our lives. The
fact that we spend a huge amount of our waking hours at work means job satisfaction will
also play a huge role in our lives. While you look for the dream career or job that will make
you happy, whatever job you are doing now must significantly contribute to your happiness.
That is the crucial importance of job satisfaction. Organizational commitment has an
important place in the study of organizational behavior. This is in part due to the vast number
of works that have found relationships between organizational commitment and attitudes and
behaviors in the workplace. The reasons for studying organizational commitment are related
to “(a) employee behaviors and performance effectiveness, (b) attitudinal, affective, and
cognitive constructs such as job satisfaction, (c) characteristics of the employee‟s job and
role, such as responsibility and (d) personal characteristics of the employee such as age, job
tenure”
47

Literature Review

Narimawati, S.E., (2007) studies on “The influence of work Satisfaction, Organizational

Commitment and turnover Intension” and he finds that employee satisfaction effects the
organizational commitment very strongly. Sumita,( 2004 ) studies on “Effects of
organizational commitment on productivity” and she finds that the main objective of the
management is to increase the efficiency by getting maximized productivity at the minimum
cost .However, motivation is considered to be crucial for good performance with employee
satisfaction. Mitchell(1982), studies on “Relation between job performance and motivation”
and finds that job performance are typically determined by the motivation to work hard and
high motivation mean greater efforts and higher performance. Tung(1981), studies on
“Patterns of MotiEvation in Chinese Industrial Enterprises” and finds thatmotivation is the
push employees towards improved performance and increased productivity. Stoke(1999),
motivation is a human psychological characteristics that contribute to a person‟s degree of
commitment. Dormann&Zapf(2001), studies on„Job satisfaction: A meta-analysis of
stabilities” and he finds that Employee satisfaction is more response to specific factors of the
job. Job satisfaction is placed as a control concept in work and organizational psychology.
Although initively convincing, working conditions as the major cause of the job satisfaction
have been challenged. Sahnawaz&Juyal (2006), studies on”Human Resource Management
Practices and Organizational Commitment in Different Organizations” and they finds that
employee commitment is seen as the key factor in achieving competitive performance.

Scope of research

This research has two objectives as follows: firstly, to examine the relationship between
intrinsic satisfaction and organizational commitment. Secondly, to examine the relationship
between extrinsic satisfaction and organizational commitment.

Significance of objectives:-

 To find out the satisfaction level of employee

 To find out the level of the good relationship
 between the Employee satisfaction and organizational commitment.
 To identify important factors of the employee satisfaction and organizational commitment of the
employee.
 To study attitude of employes towards there work.

Research Hypothesis:
- Ho1 : Employee satisfaction is connected with organizational commitment
Ho2 Employee are highly satisfied with concerned institutions.
48

. RESEARCH METHODOLOGY

Research methodology is a systematic way to solve research problem, it may be understood as a

science of studying how research done systematically. This includes geographical area covered,
period of study, research design, method of data collection, research instrument and sampling
design
Research design:
Descriptive research design is used in this study.

Sample area:
The study was carried out in Panchmahal dairy, Godhra

Sampling Unit:
The sampling units are the employees who are working in Panchmahal dairy

Sample Population:
This study was conducted with a sample population of 400 respondents.

Sample Size
Out of the total strength the sample taken amongst worker i.e:100

Sampling Method
The sampling method indicate how the samples are selected from the universe. The research has
adopted convenience sampling for research.
Convenience sampling is a method under non probability sampling. The research selected the
respondents based on his convienience.

Data Collection Method

Data Collection is an act of collecting relevant and adequate data required for the research for
sample size.
Primary Data:
It acts as the main source and was collected through questionnaire
Secondary Data
Its collected from the net for industry profile and company profile.

Research Instruments
For data collection questionnaire schedule was framed. Direct personal interview method was
used for collecting information the respondents through questionnaire and observation.

Research Methodology
Research Design Descriptive Research
Types of Data Primary Data
49

Sampling Units Employes of organization

Sample Size 150
Data Collection Tool Questionnaire
Data Collection Method Survey
Area of Research Godhra
Data Analysis Tool SPSS software
50

45
Data analysis and interpretation

Table 1

Working experience of employees

Employes No of respondants Percentage

Below 2 years 11 20%
2-5 years 16 28%
Above 10 years 23 82%
Total 50 100%

Table 1
45
40
35
30
25
20
15
10
5
0
below 2 yrs 2-5 yrs above 10 yrs

Interpretation :

From the above table 20% of employes have the working experience below 2 yrs and 28% in
between 2-5 yrs at the time 82% employes work above 10 years in the institution.

Table 2
SATISFACTION OF EMPLOYES IN TRANING AND PROGRAMMES

OPINION NO OF RESPONDANTS PERCENTAGE

Highly satisfied 18 36%
Satisfied 20 40%
Dissatisfied 12 24%
Total 50 100
51

45
40
35
30
25 Series 3
Series 1
20
15
10
5
0
highly satisfied satisfied dissatisfied

Interpretation : from the above table 36% of employes are highly satisfied, 40% are satisfied and
24% are dissatisfied

Table -3

Satisfaction level of employe in work enviourment

opinion No of respondants Percentage

Good 36 72%
Bad 6 12%
Average 8 16%
total 50 100
52

80

70

60

50

40 Series 3

30

20

10

0
good bad average

Hypothesis testing:
Ho:there is no significance relationship between employes satisfaction and working relation