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INTRODUCTION:

Job Analysis is the process of describing and recording aspects of jobs and specifying the skills and other requirements necessary to perform the job.

Purpose
One of the main purposes of conducting job analysis is to prepare job description and job specification which in turn helps to hire the right quality of workforce into the organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; describing a job; developing performance appraisals, selection systems, promotion criteria, training needs assessment, and compensation plans. In the fields of Human Resources (HR) and Industrial Psychology, job analysis is often used to gather information for use in personnel selection, training, classification, and/or compensation. The field of vocational rehabilitation uses job analysis to determine the physical requirements of a job to determine whether an individual who has suffered some diminished capacity is capable of performing the job with, or without, some accommodation. Professionals developing certification exams use job analysis (often called something slightly different, such as "task analysis") to determine the elements of the domain which must be sampled in order to create a content valid exam. When a job analysis is conducted for the purpose of valuing the job

NEED & IMPORTANCE OF THE STUDY:


JOB ANALYSIS helps the organization to follow systematic way of collecting data & information of each employee to aid planning, decision making and submitting of returns & reports to the external agencies. This collected information about the personnel will be helpful in solving the employees problems and organization problems .JOB ANALYSIS maintains the data related to the employees personal profile, career profile, and skill profile & benefit profile, which would help in their growth. JOB ANALYSIS also maintains the data related to the personnel identification i.e. The employee code to recognize every individual with their employee codes. JOB ANALYSIS also includes managing the salary discrepancies of employees. Some modifications are done in order to rectify the salary discrepancies of the employees.

Objectives of the study


1. To Determine equitable wage differentials between different jobs in the organization 2. Why does the job exist? When is the job to be performed in Heritage? 3. To develop a consistent wage policy 4. To provide a framework for periodic review and revision of wages 5. What constitutes successful performance of job analysis? 6. To enable management to gauge and control the payroll costs 7. To minimize wage descriptions on the basis of age, sex, caste, region, religion, creed etc

Scope of the study


The study with the prime objectives of ascertaining the employees towards the analyzation of jobs , which are required to perform their jobs effectively. In Heritage Foods (India) Limited. The survey was conducted on employees grades of heritage.the questionnaire for this survey was framed considering on work graders of heritage.the questionnarie for this survey was framed considering tose factors where corrective action can be taken at heritage.from the result of the survey the hr department can take corrective action to decrease absenteeism rate thereby increasse their productivity and efficiency

METHODOLOGY
The present study has been conducted in HERITAGE LIMITED situated at Hyderabad. The online Interviews are conducted through a properly Designed questionnaire constitute the primary source of data for the study.

Unit of study
Two instruments are used; the first one is the management schedule to gather Information from management on different angles of organization. The second one intended to administer among the sample.

Research & Design


1. 2. Research method Data collection Method Primary source : : : Survey

Structured closed ended questionnaire Company brochures , records , magazines (REINFOREC), Journals, Internet.

Secondary source :

Research Instrument : Sampling plan : Procedure :

Personal Interview with aid Size 100 simple random sampling

LIMITATIONS OF THE STUDY:


While the computerized Human Resource Information System, described Earlier, has many benefits, it also has many problems, which need to be Addresses to before it can really be useful. Some of them are described below. (a) It can be expensive in terms of finance and manpower requirements. (b) Often the personnel designing JOB ANALYSIS do not have a thorough Understanding of what constitutes quality information for the users. Thus, The user managers do not get exactly the reports, which they Want Producing information that is of quality to the users requires an Investment in time, effort and communication on the part of JOB EVALUTION Managers. (c) Computers cannot substitute human beings. Human intervention will Always be necessary. Computers can at best aid the human effort. The Quality of response is dependent upon the accuracy of data input and Quires fired. The Garbage-in Garbage-out is the key expression in any Computerized system. (d) In many organizations , the system is operated in batch mode with The records being updated once a week. Online facility in multi-

Environmental needs to be developed so that the reports generated are Not out of place with the realities.

INTRODUCTION
JOB ANALYSIS DEFINITION
Job Analysis is a process of studying and collecting information relating to operations andresponsibilities of a specific job. The immediate products of this analysis are JobDescription and Job Specifications.

MEANING OF JOB ANALYSIS


Job Analysis is a process of collecting information about a job. The process of job analysisresults into two sets of data.Job analysis is the formal process of identifying the content of a job in terms activities involved and attributes needed to perform the work.

Individual Job Analysis


The individual Job Analysis of any given occupation provides the foundation for sound decisions in pre-employment screening, task performance, consultation and ongoing training. Task analysis ensures that any system of work performance will operate and be maintained in a safe and efficient manner, reducing the potential for injury to personnel and improving productivity for the organization. Rehabilitation Services has developed an innovative and comprehensive job analysis tool that evaluates the requirements of any occupation and provides meaningful insights into current methods of task performance, improved methods of performance, the functional requirements of the role and specific training opportunities relevant to the persons engaged in that occupation to address their occupational wellbeing.

Task analysis addresses the following elements:


o o o o o o

Functional Demands Pre-Employment Screening OHS Consultation Compliance Hazard Identification Safe Work Methods Training Programs

Functional Demands
Functional demands are the physical elements required of any occupation. They provide a direct indication of the minimal abilities required of an individual to safely, consistently and efficiently perform a task, select elements of a job and ultimately a complete occupation. This is at the core of the information required for informed pre-employment screening protocols, ensuring individuals selected for an occupation have the minimum physical abilities to carry out the role without foreseeable risk of injury due to pre-existing limitations. Identification of the functional demands of any occupation is an essential element of the preventative occupational health and safety process.

Pre-Employment Screening
Once functional demands of an individual job have been identified and defined, a reference is formally established for the matching of an individuals abilities to the requirements of the job. This is an integral element in the employment of suitable persons with the capability of meeting the physical requirements of the role, as defined by the Job Analysis. The pre-employment screening process then becomes a meaningful comparison of abilities vs. demands, rather than a singular hunt for pre-existing medical conditions.

OHS Consultation Compliance


A structured job analysis provides a direct forum for the consultation and engagement of personnel in the occupational health and safety process. An individual or small group of individuals performing the specific role being assessed will represent all similar employees and as such, have the opportunity to discuss relevant issues with the appointed consultant.
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Consultation of employees is a federally mandated process required of all organisations. The job analysis forum provides a meaningful tool for engaging employees in a process designed to improve safety and workplace wellbeing. It is a proactive tool that results in an enhancement of the pre-existing consultation arrangements between the organisation and its employees.

Hazard Identification
A hazard is defined as a source or a situation with the potential for harm in terms of human injury or ill-health, damage to property, damage to the environment or a combination of these. Hazard identification is the process of recognizing that a hazard exists and defining its characteristics. The review of any occupation by a specialized consultant inevitably results in the identification of hazards in that role. While these hazards may already be managed by the organization, the independent review of a role through job analysis ensures further scrutiny. Potential hazards are communicated to appropriate personnel in commercial confidence, allowing a structured internal approach to addressing such issues.

Safe Work Methods


The analysis of task completion techniques ensures the refinement or development of alternate safe methods of work performance. The job analysis tool provides a consistent reference for the organization to review methods of task performance in the pursuit of continual improvement and a basis for the informed allocation of resources for items such as plant and equipment.

Training Programs
As a requirement of compliance with the Occupational Health and Safety Regulation, an employer must ensure that any person who may be exposed to a risk to health and safety at the employers place of work is provided with any information, instruction and training necessary to ensure the persons health and safety. In conjunction with established national standards, the Job Analysis forms the foundation for meaningful instruction of employees in safe work methods. It is the essential element for ensuring that training is tailored and directed to the individuals actually performing the role. The benefits are improved participation, the retention of principles instructed and the application of these principles to work performance. The implementation of a meaningful training program assists in the development of a safety culture, ultimately resulting in reduced incidence of work place injury while meeting obligations under the relevant legislation. Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.

Importance of Job Analysis Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand-supply analysis, recruitments, compensation management, and training need assessment and performance appraisal.

Components of Job Analysis Job analysis is a systematic procedure to analyze the requirements for the job role and job profile. Job analysis can be further categorized into following sub components.

Job Position Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees receive greater pay scale than nonmanagerial employees. The non-monetary benefits offered to two different levels in the organization also vary.

Job Description

Job description refers the requirements an organization looks for a particular job position. It states the key skill requirements, the level of experience needed, level of education required, etc. It also describes the roles and responsibilities attached with the job position. The roles and responsibilities are key determinant factor in estimating the level of experience, education, skill, etc required for the job. It also helps in benchmarking the performance standards.

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Job worth

Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. It is also known as job evaluation. Job description is used to analyze the job worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how much the job is worth, it becomes easy to define the compensation strategy for the position.

Therefore, job analysis forms an integral part in the formulation of compensation strategy of an organization. Organizations should conduct the job analysis in a systematic at regular intervals. Job analysis can be used for setting up the compensation packages, for reviewing employees performance with the standard level of performance, determining the training needs for employees who are lacking certain skills.

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The Brainbench Consulting Services team will work with the customer to complete a job analysis for each position within the selection process. During this activity, a series of interviews will be conducted with 5 to 8 different subject matter experts. Over the course of the interviews, the Brainbench team will collect information as it relates to the job, duties, responsibilities, judgment, education, work experience, and background information. The data collected from the surveys will be compiled and analyzed. A Job Analysis report is then generated and presented to the customer for review.

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Custom Assessments
Brainbench has been a leader in the design, development and deployment of assessments for numerous corporate and government customers. To date, several hundred assessment tests have been developed that leverage various types of assessment technology, including automated essay scoring, interactive flash modules, concurrent use assessments, hot spot technology and data entry. In addition, Brainbench has the capability to host and administer assessments from 3rd party providers. This may include an assessment test that would be administered during the recruitment process, delivered during a training and certification course, or used to measure the knowledge of a particular organization. In addition, Brainbench can incorporate:

Biographical Data Inventory (BDI) Using the date from the Job Analysis, Brainbench will formulate a series of Bio-Data questions. These questions can be used to screen out candidates that don't meet certain requirements, i.e. experience, citizenship, etc. The customer has the option of including these questions within the Brainbench Assessment Battery or their Applicant Tracking System.

Knowledge Skills and Abilities (KSA) Using the data from the Job Analysis, Brainbench can compile a series of assessment modules that address the knowledge skills and cognitive ability necessary to perform a job. The assessment items will be compiled from Brainbench's library of over 450 different skills assessments. The assessments will be based administered via Brainbench's Computer Adaptive Test (CAT) engine.

Personality/Attitudes, Interest and Motivations (AIM) Using the data from the Job Analysis, Brainbench can compile a series of assessments that ensure a good fit based on personal interests, characteristics, and job attitude.
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Through the use of an AIMs test, we can determine a candidate's fit within the organization and culture, as well as predict job performance based upon the candidates interest in using what skills they already have. The Human Resources regulatory compliance arena continues to be a myriad of ever changing state and federal mandates. The cost of ensuring compliance continues to climb with each new regulation however, in many cases, small and medium sized businesses simply cannot keep up. HRD Group approach develops a Human Resources regulatory compliance foundation and tailors it to meet your business needs. External expert legal specialists are retained and available for guidance on intricate employment issues. Human Resources Audit The purpose of the HR Audit is to identify the strengths and weaknesses in the HR functions and address issues needing resolution. The audit looks at each function and asks the question are we actually doing what we say we are doing or what we should be doing. This can then be compared to best practices and a plan of action put in place. HRD Group can help your organization be in compliance and improve its productivity through a comprehensive HR audit that includes a course of action for improvement and organizational development. Affirmative Action Plan An affirmative action plan is more than a declaration of good intention. It describes a program of action leading toward the accomplishment of specific and measurable results in connection with legal and moral responsibilities of an organization. HRD Group offers an array of EEO/AAP consulting services, from plan assistance and maintenance to AAP education and regulatory updates. Once your Affirmative Action Program is in place, you will probably want to continue with our consulting services for plan maintenance and knowledge transfer.

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EEO/AAP Consulting Services Women, Veterans and Individuals with Disabilities in the following areas:

Preparation of Companys AAP for Women, Veterans and Individuals with Disabilities In-house training and workshop in How to Prepare an AAP Training in Equal Employment Opportunity laws and regulations Conduct Affirmative Action Self-Audit Evaluation of Recruiting and Personnel Practices Orientation to Management Personnel in EEO/AAP policies and regulations Presentation to Management of Companys AAP results, goals and action program Prepare Quarterly and Statistical Reports Assistance on Desk Audit and On-site Compliance Review Coaching in cases of Reasonable Accommodations

Who is required to do Affirmative Action Planning? Any employer who has a federal contract in totaling $50,000 or more and has 50 or more employees is subjected to the federal government's Affirmative Action Program under Executive Order 11246. This select group of employers are obligated to prepare and maintain three written Affirmative Action Plans; jointly called an Affirmative Action Program or AAP. The Office of Federal Contract Compliance Programs (OFCCP) is the federal agency having jurisdiction and enforcement authority for the Affirmative Action section of federal regulations. Federal contractors Affirmative Action plans must be reviewed and updated on a yearly basis. The enforcement agencies for AAP compliance can visit your company for a pre-contract review, employee discrimination complaint, desk audit, or comprehensive on-site review. I-9 Employment Verification The Immigration Reform and Control Act of 1986 (IRCA) legally mandates that U.S. employers must verify the employment eligibility status of newly-hired employees and makes it unlawful for employers to knowingly hire or continue to employ unauthorized workers. Noncompliance, whether intentional or caused simply by oversight, has severe legal and financial consequences
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imposed by the Department of Homeland Security, as well as the potential of a corporate image tarnished by negative publicity. HRD Group audits your Form I-9 to verify employees' legal right to work in the United States, reduce processing errors, document retention obligation, and more. Compliance Training We can provide training on Human Resources legal issues. The Human Resources regulatory compliance arena continues to be a myriad of ever changing state and federal mandates. The cost of ensuring compliance continues to climb with each new regulation however, in many cases, small and medium sized businesses simply cannot keep up. HRD Group approach develops a Human Resources regulatory compliance foundation and tailors it to meet your business needs. External expert legal specialists are retained and available for guidance on intricate employment issues. Human Resources Audit The purpose of the HR Audit is to identify the strengths and weaknesses in the HR functions and address issues needing resolution. The audit looks at each function and asks the question are we actually doing what we say we are doing or what we should be doing. This can then be compared to best practices and a plan of action put in place. HRD Group can help your organization be in compliance and improve its productivity through a comprehensive HR audit that includes a course of action for improvement and organizational development. Affirmative Action Plan An affirmative action plan is more than a declaration of good intention. It describes a program of action leading toward the accomplishment of specific and measurable results in connection with legal and moral responsibilities of an organization. HRD Group offers an array of EEO/AAP consulting services, from plan assistance and maintenance to AAP education and regulatory

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updates. Once your Affirmative Action Program is in place, you will probably want to continue with our consulting services for plan maintenance and knowledge transfer. EEO/AAP Consulting Services Women, Veterans and Individuals with Disabilities in the following areas:

Preparation of Companys AAP for Women, Veterans and Individuals with Disabilities In-house training and workshop in How to Prepare an AAP Training in Equal Employment Opportunity laws and regulations Conduct Affirmative Action Self-Audit Evaluation of Recruiting and Personnel Practices Orientation to Management Personnel in EEO/AAP policies and regulations Presentation to Management of Companys AAP results, goals and action program Prepare Quarterly and Statistical Reports Assistance on Desk Audit and On-site Compliance Review Coaching in cases of Reasonable Accommodations

Who is required to do Affirmative Action Planning? Any employer who has a federal contract in totaling $50,000 or more and has 50 or more employees is subjected to the federal government's Affirmative Action Program under Executive Order 11246. This select group of employers are obligated to prepare and maintain three written Affirmative Action Plans; jointly called an Affirmative Action Program or AAP. The Office of Federal Contract Compliance Programs (OFCCP) is the federal agency having jurisdiction and enforcement authority for the Affirmative Action section of federal regulations. Federal contractors Affirmative Action plans must be reviewed and updated on a yearly basis. The enforcement agencies for AAP compliance can visit your company for a pre-contract review, employee discrimination complaint, desk audit, or comprehensive on-site review.

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I-9 Employment Verification The Immigration Reform and Control Act of 1986 (IRCA) legally mandates that U.S. employers must verify the employment eligibility status of newly-hired employees and makes it unlawful for employers to knowingly hire or continue to employ unauthorized workers. Noncompliance, whether intentional or caused simply by oversight, has severe legal and financial consequences imposed by the Department of Homeland Security, as well as the potential of a corporate image tarnished by negative publicity. HRD Group audits your Form I-9 to verify employees' legal right to work in the United States, reduce processing errors, document retention obligation, and more. Human Resources Management HRD Group provides a wide variety of management and human resource consulting services. Our consulting services are provided on-site or off-site, or a combination that best meets the clients needs. We will work with your company to identify needs, develop an action plan, and assist with implementation. Policies and Procedures To ensure the fair and consistent treatment of your employee base, it is necessary for all organizations to have up-to-date and easy to administer policies and procedures relating to operational matters. HRD Group will partner with you to identify, define and write policies and procedures that reflect the requirements of your business model as well as incorporate the values of your organization. Employee Handbook Employee handbooks can take ages to write and need to be regularly updated as employment law changes. We offer customized employee handbooks including legal review. Other initiatives generally administered by the Human Resources Department.

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BENEFITS
HRD Group provides our clients with the information needed to make the necessary decisions regarding their employee benefits. This is to be achieved through the understanding and evaluation of all pertinent facts and circumstances surrounding each individual clients needs. It is very important that the needs and expectations of both employers and employees are met and special attention is given to communication in these areas. Benefits Package We review existing coverages and funding and analyze them to determine the true cost of these benefits. We help employers get control of their benefit costs. Benefits Benchmark We assist you in designing a plan of benefits to meet current needs with special attention paid to eliminating duplicate coverage or gaps in coverage. The insurance marketplace is then "shopped" for the plan of benefits and funding alternatives that are needed to maximize your benefit dollars. We review, analyze, and compare all the proposals received. Then we prepare a detailed feasibility study taking into consideration benefits, cost, current legislation, and your long-range plans as a company or an individual. Benefits Management and Service Our firm will enroll and communicate the new plan to your employees. Special attention will be given to any plan changes. We want to achieve both employer and employee satisfaction. Our firm is committed to providing professional, personal, and courteous service to our clients. We assist in answering questions regarding administration, claims, or product knowledge. Employer and employee satisfaction is our number one job. Our services include access to and administration of several plans, including:

Health, Pharmacy and Dental Insurance Life Insurance Accident, Dismemberment & Death Insurance
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Short and Long Term Disability Supplemental Programs COBRA Administration 5500 Filing

Its Simple There is no need to meet with multiple vendors when considering a benefits plan for your business. With HRD Group youre provided with several benefits options and expert management of the administrative process. Simply choose the plan or services that best fits your needs and we will implement and manage your customized program. Its that simple. Enhance your workforce, save time and concentrate on your core business by removing the administrative paperwork associated with a benefits program.

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Compensation The effective design and communication of total compensation programs are instrumental to an organizations ability to attract, retain, and motivate talented employees. HRD Group consultants provide services and solutions to meet your organizations specific business needs.

Compensation Process

Recognizing that successful compensation programs must be fully aligned with a companys mission and objectives, we provide the following services:

Development of job analysis, job description, job evaluation, internal, external and individual equity

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Design and conduct of compensation surveys to identify competitive market rates for positions.

Review and evaluation of current compensation programs and practices with recommendations for improvement.

Assessment of the competitiveness of compensation practices. Development of performance appraisal programs, especially in conjunction with improved pay administration plans.

Assist in documenting your programs and preparing tools for ongoing administration. Assist in preparing communication materials to ensure that employees understand and value their total compensation package

Assist with periodic assessments of your programs and suggest possible improvements

HR is usually the first stop for a new employee and the last stop for an existing employee. It is where work rules are introduced and enforced as well as where employees turn when they have a problem or need assistance. Our HR consultants works closely with organizations to develop and maintain appropriate policies and practices that create a positive employer/employee relationship. A key benefit our clients discover is our availability to assist them in thinking through the intricate HR problems that are a daily reality in most every organization. You don't have to be concerned about employee relation situations that we can easily take care for you. When you entrust us with your employee relations, you won't waste time worrying about sticky situations or wondering what to do. We'll help your employees feel comfortable and productive. HRD Group recognizes that Human Resource Management is not just about dealing with legislation and increasing the efficiency of your business. We want to increase the effectiveness of your business too! Your people are your competitive advantage and managing them effectively in todays legally complex environment is tough. Good people can be hard to find and even harder to keep!

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With a wide range of both managerial and personal skills training and development options, tailored to your needs we can assist you to train and develop your staff. Our customized training initiatives encompasses a wide range of training and development topics to include communication, customer service, leadership, supervisory, time management, and others. To discuss possible training and development programs, and how we can assist your business please contact us for a free consultation. Benefits of Training

Increased productivity Improved efficiency Greater accuracy Improved motivation and morale Less direct supervision Reduced turnover Ensures consistency Increased compliance (regulatory/statutory)

Training and Development Topics HRD Group, Inc. offers onsite and/or offsite trainings tailored to your workforce needs. Below we detail topics of our training program. Other trainings are available.

Avoiding Hiring Mistakes Coaching Communication Skills Conducting Successful Performance Appraisals Conflict Management Customer Service Effective Supervision Emotional Intelligence Employment Law Improving Workplace Discipline Practices
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Leadership Skills Motivation Negotiation Skills Performance Management Preventing Sexual Harassment Stress Management Teamwork Time & Priority Management

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The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

Growth of Indian Retail


According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

Major Retailers in India Pantaloon:


Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments:

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Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe,
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Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products and services.

Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.

E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

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Challenges facing Indian retail industry


The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill

The Future

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.

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Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Etymology
Retail comes from the French word retailler, which refers to "cutting off my hands, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, off my toes paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively), also refers to the sale of small quantities of items.

Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.
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In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows:

Food products Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. However the service is inadequate.;

General merchandise store - a hybrid between a department store and discount store; Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).

Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

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Specialty Stores: A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

Convenience Stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore.

Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai.

Category Killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. For example: Pai Electronics store in Bangalore, Tata Croma.

E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the

31

customer to be wary about defective products and non secure credit card transaction. Example: Amazon and Ebay.

Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox.

Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday or roadside items;

General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales.

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Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.

Transfer mechanism
There are several ways in which consumers can receive goods from a retailer:

Counter service, where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. It was common before the 1900s in the United States and is more common in certain countries.
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Delivery (commerce), where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed catalog was invented in 1744 and was common in the late 19th and early 20th centuries. Ordering by telephone is now common, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service (especially for pizza delivery). Direct marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. Online shopping started gaining significant market share in developed countries in the 2000s.

Door-to-door sales, where the salesperson sometimes travels with the goods for sale. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 1920s.

Second hand retail


Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be sold. In give-away shops goods can be taken for free. Another form is the pawnshop, in which goods are sold that were used as collateral for loans. There are also "consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers.

Sales techniques
Behind the scenes at retail, there is another factor at work. Corporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to seasonal and promotional changes. As products change, so will a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked store, even when it is not.

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A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. These stores are often used to "anchor" a shopping mall or plaza, generating foot traffic, which is capitalized upon by smaller retailers.

Customer service
According to the bookDiscovery-Based Retail, customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from your retail establishment." It is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. When a customer enters the store, it is important that the sales associate does everything in his power to make the customer feel welcomed, important, and make sure he leave the store satisfied. Giving the customer full, undivided attention and helping him find what he is looking for will contribute to the customer's satisfaction.

Retail Sales
The Retail Sales report is published every month. It is a measure of consumer spending, an important indicator of the US GDP. Retail firms provide data on the dollar value of their retail sales and inventories. A sample of 12,000 firms is included in the final survey and 5,000 in the advanced one. The advanced estimated data is based on a subsample from the US CB complete retail & food services sample.

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COMPANY PROFILE
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with four-business divisions viz., Dairy, Retail, Agri, and Bakery under its flagship Company Heritage Foods (India) Limited (HFIL), one subsidiary - SKIL RAIGAM POWER Limited. The annual turnover of Heritage Foods crossed Rs.900 crores in 2009-10 and is aiming for Rs.1100 crores during 2010-11. Presently Heritages milk products have market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Maharastra and Orissa and its retail stores across Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are backbone to retail operations. The state of art Bakery division at Uppal, Hyderabad, AndhraPradesh.

In the year 1994, HFIL went to Public Issue to raise resources, which was oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD) The Founder Chairman

Heritage Foods ( India ) Limited, India

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and Visionary Leaders of the 21 st Century. With an objective of "Bringing prosperity into the rural families through co-operative efforts", he along with a few like minded, friends and associates promoted "Heritage Foods" in the year 1992 taking opportunity from the Industrial Policy, 1991 of Government of India and he has been successful in his endeavour. At present, Heritage has market presence in the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Maharastra. More than three thousand villages and three lakh farmers are being benefited in these states. On the other side, Heritage is serving millions of customers needs, employing more than 3500 employees and generating indirect
36

employment opportunities to more than 10000 people. Beginning with a humble annual turnover of Rs.4.38 crores in 1993-94, the sales turnover has reached close to Rs.350 crores during the financial year 2006-2007.

Sri Chandra Babu Naidu was born on April 20, 1951 in Naravaripally Village , Chittoor District, Andhra Pradesh , India . His late father Sri N. Kharjura Naidu was an agriculturist and his late mother Smt. Ammanamma was a housewife. Mr. Naidu had his school education in Chandragiri and his college education at the Sri Venkateswara Arts College , Tirupati. He did his Masters in Economics from the Sri Venkateswara University , Tirupati. Sri Naidu is married to Ms. Bhuvaneswari D/o Sri N T Rama Rao, Ex-Chief Minister of Andhra Pradesh and famous Star of Telugu Cinema. Mrs. N Bhuvaneswari is presently the Vice Chairman & Managing Director of Heritage Foods ( India ) Limited.

Mr. Naidu held various positions of office in his college and organised a number of social activities. Following the 1977 cyclone, which devastated Diviseema taluk of Krishna district, he actively organised donations and relief material from Chittoor district for the cyclone victims. Mr. Naidu has been evincing keen interest in rural development activities in general and the upliftment of the poor and downtrodden sections of society in particular.

Sri Naidu held various coveted and honourable positions including Chief Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small Industries Development Corporation, and Chairman of Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the Business Week magazine for being an unflinching proponent of technology and for his drive to transform the State of Andhra Pradesh .
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Heritage Slogan When you are healthy, we are healthy When you are happy, we are happy We live for your "HEALTH & HAPPINESS"

Mission
Bringing prosperity into rural families of India through co-operative efforts and providing customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food products.

Vision
To be a progressive billion dollar organization with a pan India foot print by 2015.

To achieve this by delighting customers with "Fresh and Healthy" food products, those are a benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming community through our unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career aspirations and providing innovative avenues for enhanced employee prosperity.

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Board of Directors
Sri D. Seetharamiah, Chairman, aged 83 years, a commerce graduate from the Andhra University and a member of the Institute of Chartered Accountants of India, is the senior partner of Brahmayya & Co., a leading Chartered Accountants firm. He has been in practice for the last four decades. He had occupied several coveted positions, which include, Membership of the Southern Regional Board of Reserve Bank of India, Federation of Andhra Pradesh Chamber of Commerce and Industry, Chairmanship of Tirumala Tirupati Devasthanams Trust Board etc. He is also on Board, of several Companies.

Sri K. Kannan, Director, aged 70 years, is an F.C.A and I.C.W.A and Honorary Member of the Indian Institute of Bankers. He started his career as a direct recruited officer in 1965 in Bank of Baroda and worked in various capacities in the same Bank upto 1992. Thereafter he was appointed as its Chairman and Managing Director and served between 1995 to 1999. He had the occasion to render its services overseas as Vice-President between 1982-84 at New York and General Manager of U.K Operations of Bank of Baroda. Apart from this he was also the Chairman of IBU international Finance Limited, honking, Chairman BOB Cards Ltd. He had held the position as Director in several companies like discount and finance house of India, Visa International Pacific, Agricultural Finance Corporation, New India fire and General Assurance Co.Ltd, Andhra Pradesh State Financial Corporation. Apart from this he is also on the Board of directors of several Limited Companies. He had the core banking experience for over 30 years and handled successfully several cases of reviving, rehabilitating and reconstruction of the sick industries.

Dr. A. Appa Rao, Director, aged 83 years, a B.Sc.(Agri), Ph.D. in Agriculture (Madras University), completed his post doctoral work at Kansas State University as TCM-USA Scholar, retired as the Vice Chancellor of the Andhra Pradesh Agricultural University. He is an author of around 40 papers published in the fields of Plant Pathology and Agricultural Research & Education. Being associated with the IDRC financed Agricultural Research Management (Asia)

39

Project, was instrumental in implementing SEARCA, Philippines for over 5 years. He is also a Director in several Companies and a member of several committees including the ICAR.

Dr. V. Nagaraja Naidu, Director, aged 62 years, an M. Com, M. Litt and a PhD. (Financial Management), starting from Administrative Staff College of India, Hyderabad in 1972 held various positions in reputed Universities, Viz., Professor, Dean Director etc., and taught in the fields of Finance and Business Economics at Post graduate and Doctorate levels for about 25 years. He had been the Registrar (Administrative head) of the Dr B R Ambedkar Open University for about 10 years. He has been associated with the Company since inception and has been able to utilize his intimate understanding of the rural socio economic scenario to strengthen the milk procurement systems and strategies of Heritage, which contributed to the current status of Heritage as a leading player in South India.

Smt N. Bhuvaneswari, Vice-Chairman & Managing Director, aged 47 years, a B.A, is a dynamic leader who has extensive experience in business and has been successfully steering Heritage towards growth and better prospects. She is also a Director in several other Companies.

Sri Lokesh Nara, Executive Director, aged 27 years, completed his Masters Degree in Business Administration from Stanford University and graduated with a Bachelor of Science degree in Management Information Systems from Carnegie Mellon University. Before joining the Board of Heritage Foods, he was associated with the Company as a Vice-President of the Retail division. Before joining Heritage Foods, he worked with the World Bank as a Junior Professional Associate where he completed various projects including an e-Governance Capacity Building program for the government of Ethiopia, and e- Governance Capacity Building program for the governments of South Sudan and Kenya. He has over three and half years of experience in the areas of strategic business and information technology.

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Corporate Governance Corporate Governance is a system with which, an organization is structured. Corporate Governance integrates multi functions of an organization to fulfill the objectives with in the framework of all the stakeholders, society, Law of Government, and people at large. It is based on the principles of integrity, equity, transparency, accountability and commitment. Good governance practices stem from the culture and mindset of the organization. Heritage is committed good governance that creates long-term sustainable shareholder value. A. Companys Philosophy on Corporate of Governance Heritage has integrated the value system in all spheres of activities involving people from all functional areas. It has initiated to comply with code of conduct for all the directors, senior staff and functional heads. The main focus is on highest levels of integrity, transparency responsibility and accountability. It is about best practices of business to be imbibed in to the culture of the organization and complying with value systems, ethical business practices, laws and regulations to achieve the main objectives of the company .

Heritage respects and provides information to stake holders about the performance and strives to be ahead of competition by taking all the risk assessment well in advance. At Heritage the focus is on its core strengths, value systems, hard working and strategic moves to be in the leading edge of new technology.

A brief report on the practices and compliances by your company is given below.

B. Board of Directors Composition Heritage has been one of the front runners in establishing broad based Directors with a balanced composition of Executive Director to Non executives Independent Directors ever since it went public. The functions, responsibility, role and accountability of the Board are well defined. The detailed reports of the company activities and performances are periodically placed before the Board for effective decision-making.
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Board & its committee Meetings and procedures

With a view to institutionalize all corporate affairs and set up systems and procedures for proper planning for matters requiring discussion/ decisions by the Board, the Company has defined the guidelines for the meetings of the Board and Committees thereof.

Scheduling and Selection of Agenda items for Board Meetings. (a) Minimum four Board meetings are held in each year, which are pre-scheduled after the end of the each financial year. Apart from the pre schedule Board meetings, additional Board meetings are convened by giving appropriate notice to address the specific needs of the Company. (b) The meetings are held at the Companys Registered office at 6-3-541/C, Panjagutta, Hyderabad-500 082, and Andhra Pradesh, India.

(c) The information placed before the Board includes. Quarterly results for the Company and its operating divisions or business segments Minutes of the meeting of the Audit Committee and other committees of the Board Non-compliance of any regulatory, statutory nature or listing requirements and shareholders services such as non payment of dividend, delay in share transfer etc. Quarterly summery of all long term borrowings, bank guarantees issued and investments made etc Recommending/ Declaring dividend General Notice of Interest of Directors Terms of reference of the Board committees Any material default in financial obligations to and by the Company etc.

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Board materials Distributed in advance Agenda and Notes on agenda are circulated to the Directors, in advance, in the defined Agenda format. All material information is incorporated in the Notes on Agenda for facilitating meaningful and focused discussions at the meeting for tacking proper decisions.

Recording Minutes of proceedings at Board Meeting The Company Secretary records the minutes of the proceedings of each Board and Committee meetings. Draft minutes are circulated to all the members of the board/ committee for their comments. The finalized minutes of proceedings of a meeting are entered in the Minutes Book within 30 days from the conclusion of that meeting.

Compliance The Company Secretary while preparing the Agenda, Notes on agenda, Minutes etc is responsible for and is required to ensure adherence to all the applicable laws regulations including the Companies Act, 1956 read with the Rules issued there under and to the extent feasible, the Secretarial Standards recommended by the Institute of Company Secretaries of India, New Delhi.

C. Board Committees 1. Audit Committee The Board has constituted Audit Committee, comprising three Non- Executive Independent Directors and one Non-Executive Director. Majority of the members of the Audit Committee posses financial / accounting expertise. The constitution of audit committee meets the requirements of Section 292A of the Companies Act, 1956 and Clause 49 of the Listing agreement.

The primary objective of the audit committee is to monitor and effectively supervise the Companys financial reporting.

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a) Terms of Reference 1) To provide direction and to oversee the operations of the audit functions of the Company.

2)

To review the internal control and audit systems with special emphasis on their quality and effectiveness.

3)

To review Quarterly, Half yearly and Annual financial results before submission to the Board.

4)

To investigate into any matter in relation to the items specified in Section 292A of the Companies Act, 1956 or referred by the Board.

5)

To have full access to information contained in the records of the Company and external advice, if necessary. To review matters required being included in the Directors responsibility statement to be included in the Boards report in terms of clause (2AA) of Section 217 of the Companies Act, 19566) To review matters required being included in the Directors responsibility statement to be included in the Boards report in terms of clause (2AA) of Section 217 of the Companies Act, 1956.

6)

2. Remuneration Committee The Board has constituted the remuneration Committee comprising three Non Executive Independent Directors . The Remuneration Committee has been constituted to recommend / review the remuneration of Managing Directors / Full Time Directors, based on their performance. The remuneration policy of the Company is directed towards rewarding performance, based on review of achievements on a periodic basis and attracting new talents and retaining them. While deciding the remuneration, the Committee takes into account the financial position of the Company, trend in the Industry, Appointee's qualification, experience, past performance, past remuneration etc.
44

Composition of the Remuneration Committee Name Sri. D. Seetharamaiah Dr. A. Appa Rao Dr. N. R. Siva Swamy Designation Chairman Member Member Status Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director

3. Share Transfer and Shareholders'/ Investors' Grievance Redressal Committee a) Terms of reference The Board has constituted Share transfer and Shareholders'/ Investors' Redressal Committee, to look into grievance/issue of share holders/investors relating to non-receipt of dividend, nonreceipt of Balance Sheet, Shares sent for transfer etc.

The Directors periodically reviewed the investor's complaints received and redressed. The committee also monitors the implementation and compliance of the Company's Code of Conduct.

The committee also reviews the performance of share transfer agent and recommends improving overall quality services to share holders.

Presently, the share transfers which are received in physical form are processed and the share certificates returned within 15 days from the date of receipt, subject to the documents being valid and complete in all respects.

The Board has delegated the authority for approving transfer, transmission etc of the company's securities to the share transfer committee. A summary of share transfer/ transmission of the securities of the company so approved by the committee is placed at every Board Meeting.

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D. Disclosures There are no transactions of material nature undertaken by the company with its promoters, directors, their relatives or the management that may have a potential conflict with the interest of the company. Disclosure on transactions with related party as required under Accounting Standard 18 has been incorporated in the notes on Accounts forming part of the Annual Report every year.

The Company circulated the Code of Conduct among all the Board members and senior management personnel and affirms that they are complying with the code on an annual basis. The total text of the Code of Conduct is posted on the company's website.

Our Commitments Milk Producers Change in life styles of rural families in terms of Regular high income through co-operative efforts Women participation in income generation Saved from price exploitation by un-organized sector Remunerative prices for milk Increase of milk productivity through input and extension activities Shift from risky agriculture to dairy farming Heritage Financial support for purchase of cattle; insuring cattle Establishment of Cattle Health Care Centers Supplying high quality Cattle feed Organizing "Rythu Sadasu" and Video programmes for educating the farmers in dairy farming

Customers Timely Supply of Quality & Healthy Products Supply high quality milk and milk products at affordable prices
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Focused on Nutritional Foods More than 4 lakh happy customers High customer satisfaction 24 hours help lines ( <10 complaints a day)

Employees Enhancing the Technical and Managerial skills of Employees through continuous training and development Best appraisal systems to motivate employees Incentive, bonus and reward systems to encourage employees Heritage forges ahead with a motto "add value to everything you do"

Shareholders Returns Consistent Dividend Payment since Public Issue (January 1995)

Service Highest impotence to investor service; no notice from any regulatory authority since 2001 in respect of investor service Very transparent disclosures

Suppliers Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit flavoured drinks AlfaLaval: supplier of high-end machinery and technical support Focusing on Tetra pack association for products package.

Society Potential Employment Generation more than 3500 employees are working with heritage
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more than 9500 procurement agents got self employment in rural areas more than 5000 sales agents associated with the company Employment for the youth by providing financial and animal husbandry support for establishing MINI DAIRIES Producing highly health conscious products for the society

48

Consistent Growth
Financial Year Turnover Other Income Total Income Earnings before Depriciation, Interest and Tax(EBDIT) Depriciation Interest Provision for Taxation Profit/(Loss) after Tax Cash Profit/(Loss) Equity Dividend(%) Dividend Payout (Including Tax on Dividend) Equity Share Capital Reserves & Surplus 11.53 75.35 11.53 69.24 11.53 104.17 9.99 59.31 9.99 62.50 9.99 52.65 9.99 45.84 9.99 34.53 10.78 24.14 10.80 19.97 2.42 Nil 2.13 3.51 3.42 3.42 3.10 3.10 2.00 1.90 47.03 19.64 16.67 4.98 5.60 30.35 18.00 3.43 17.22 14.58 6.58 (35.61) (11.15) Nil 23.66 10.55 12.43 (0.26) 0.94 11.49 18.00 12.17 6.78 1.84 1.82 1.72 8.50 30.00 25.23 4.80 0.40 6.39 13.64 18.44 30.00 20.91 4.01 0.60 6.14 10.16 14.17 30.00 31.60 3.94 0.28 9.75 17.62 21.57 27.50 27.86 4.50 0.13 8.33 14.91 19.41 27.50 20.10 2.49 0.38 6.12 11.11 13.60 20.00 14.48 2.29 1.24 2.85 8.10 10.39 16.00 2009-10 900.38 2.93 903.31 2008-09 796.03 3.23 799.26 2007-08 588.03 40.13 628.16 2006-07 346.33 1.22 347.56 2005-06 292.07 1.27 293.34 2004-05 266.13 0.78 266.91 2003-04 234.49 1.35 235.84 2002-03 192.83 0.86 193.68 2001-02 165.07 0.42 165.49 2000-01 141.49 0.38 141.87

(Rs.

Networth

86.87

80.77

115.70

69.30

72.49

62.64

55.83

44.52

34.92

30.69

Gross Fixed Assets Net Fixed Assets

294.24 215.24

264.47 203.68

206.45 162.41

128.88 95.38

80.15 53.33

72.69 50.38

63.87 45.49

53.62 38.82

43.77 32.96

40.69 32.15

Key Indicators
Earnings per share - Rs Cash Earnings per share Rs Book Value per share - Rs Debt: * Equity Ratio EBDIT/Turnover% Net Profit Margin% RONW % 4.85 26.32 (30.89) (9.67) 0.92 9.96 1.73 8.51 13.65 18.46 10.17 14.19 17.64 21.59 14.93 19.43 10.29 12.61 7.50 9.62

75.35 1.34 : 1 5.22 0.62 6.45

70.05 1.50 : 1 0.43 (4.47) (44.09)

100.35 0.96 : 1 4.02 0.16 0.81

69.37 0.79 : 1 3.51 0.50 2.48

72.57 0.00:1 8.63 4.65 18.81

62.70 0.00:1 7.86 3.81 16.22

55.88 0.01:1 13.48 7.47 31.56

44.56 0.01:1 14.45 7.70 33.49

32.38 0.14:1 12.18 6.71 31.82

28.42 0.19:1 10.23 5.71 26.39

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Data analysis & interpretation 1.Your organization provides opportunity for growth and security. S.NO 1 2 3 4 TOTAL OPTIONS Strongly agree Agree Disagree Strongly disagree No OF RESPONSES 46 50 04 0 100 PERCENTAGE% 46% 50% 04% 0% 100%

50 40 30 20
disagree Strongly agree Agree

10
Strongly disagree

0 NO OF RESPONSES
Interpretation :
The survey revealed that most of the employees strongly agree that the Heritage Foods (India) Limited provides opportunity for growth and security and some are disagree about this
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2.Pay and compensation package is adequate and fair in comparison to performance.

S.NO 1

OPTIONS Strongly agree Agree Neutral Strongly disagree

NO OF RESPONSES 18 52 18 12 100

PERCENTAGE% 18%

2 3 4 TOTAL

52% 18% 12% 100%

60 50
Strongly agree

40
30 20 10 0 NO OF RESPONSES
Interpretation:
The survey revealed that most of the employees agree for the reason of their pay and compensation package is adequate and fair in comparison to performance and some are disagree.
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Agree Neutral Strongly disagree

3.Medical facilities provided by the organization suites your health needs?

S.NO 1 2 3 4 TOTAL

OPTIONS Strongly agree Agree disagree Strongly disagree

NO OF RESPONSES 38 46 16 0 100

PERCENTAGE% 38% 46% 16% 0% 100%

50 40 30 20
disagree Strongly agree Agree

10
Strongly disagree

0 NO OF RESPONSES
Interpretation:The survey revealed that most of the employees agree and strongly agree for
the reason of the medical facilities provided by the organization which suits their health needs, and few are disagree.

52

4.Is Your job allows you to use your skills and abilities.

S.NO 1 2 3 4 TOTAL

OPTIONS Strongly agree Agree Disagree Strongly Disagree

NO OF RESPONSES 22 62 12 0 100

PERCENTAGE% 22% 62% 12% 0% 100%

70 60 50 40 30 20 10 0 NO OF RESPONSES
Disagree Strongly Disagree Strongly agree Agree

Interpretation:
The survey revealed that most of the employees agree and strongly agree for using their skills and abilities in their job.
53

5.Promotion policy of your organization ensures planned carrier growth.

S.NO 1 2 3 TOTAL

OPTIONS Yes No Cant say

NO OF RESPONSES 42 40 18 100

PERCENTAGE% 42% 40% 18% 100%

45
40 35 30 25 20 15 10 5 0
yes No Cant say

Interpretation:
The survey revealed that most of the employees are satisfied the promotion policy by the organization which ensures planed career growth. But most of the employees are un-satisfied by this policy.
54

6.Training facilities of your organization enhance your skills competencies. S.NO 1 2 3 4 TOTAL OPTIONS Very true Some what true Not true Not at all true NO OF RESPONSES 28 60 12 0 100 PERCENTAGE% 28% 60% 12% 0% 100%

60 50 40 30 20 10 0 NO OF RESPONSES
Very true Some what true Not true Not at all true

Interpretation:
The survey revealed that most of the employees are some what true about the training facilities of Heritage Foods (India) Limited that enhance their skill competencies and some employees are very true and not true.

55

7.How would you describe relations at your work place with your superiors?

S.NO 1 2 3 TOTAL

OPTIONS Very good Good Bad

NO OF RESPONSES 44 52 06 100

PERCENTAGE% 44% 52% 06% 100%

60 50

40
30 20 10 0 NO OF RESPONSES
Very good Good Bad

Interpretation:
The survey revealed that most of the employees are good at describing relations at their workplace with their superiors. And some employees are very good in maintaining their relation.

56

8.Your relation with your peers and subordinates are harmonious.

S.NO 1 2 3 4 TOTAL

OPTIONS Very good Good Satisfactory Bad

NO OF RESPONSES 44 40 16 0 100

PERCENTAGE% 44% 40% 16% 0% 100%

45 40 35 30 25
Very good Good Satisfactory Bad

20
15 10 5 0 NO OF RESPONSES

Interpretation:
The survey revealed that most of the employees are very good and some and least employees are good and satisfactory in their relation with their peers and sub-ordinates are harmonious
57

9.Your organization provides a mechanism to express your views and grievances.

S.NO 1 2 3 4 TOTAL

OPTIONS Strongly agree Agree Can say disagree

NO OF RESPONSES 16 48 18 18 100

PERCENTAGE% 16% 48% 18% 18% 100%

50 45 40 35 30 25 20 15 10 5 0
NO OF RESPONSES
Interpretation:

Strongly agree Agree Can say disagree

The survey revealed that most of the employees strongly agree and some employees agree that their organization provides a mechanism to express their views and grievances.
58

10.Do you normally work as part of a team or do you work mostly on your own?

S.NO 1 2 3 TOTAL

OPTIONS Yes I work a part of team No I work on my own I work as an individual

NO OF RESPONSES 70 18 12 100

PERCENTAGE% 70% 18% 12% 100%

70 60 50 40 30 20 10 0 NO OF RESPONSES
Yes I work a part of team No I work on my own I work as an individual

Interpretation:
The survey revealed that most of the employees work as a part of team and where some employees work on their own and individual.

59

11.How often do you feel successful in your work?

S.NO 1 2 3 4 TOTAL

OPTIONS Often Sometimes Rarely Never

NO OF RESPONSES 64 26 10 0 100

PERCENTAGE% 64% 26% 10% 0% 100%

70 60 50 40 30 20 10
Often Sometimes Rarely Never

0
NO OF RESPONSES

Interpretation:
The survey revealed that most of the employees often feel successful in their work but some employees feel sometime successful in their work.

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12.How often do you carry office work to your home as part of your job? S.NO 1 2 3 4 TOTAL OPTIONS Never Few times in a year Once in a month Once in a week NO OF RESPONSES 62 20 18 0 100 PERCENTAGE% 62% 20% 18% 0% 100%

70 60
Never

50 40 30
Once in a month Few times in a year

20 10 0 NO OF RESPONSES
Once in a week

Interpretation:
The survey revealed that most of the employees are never do carry office work to their home as part of their job. And few employees do carry their work few times in a year and least employees do carry their work once in a month.

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13.To what extent your organization provides scope for the employees Development? S.NO 1 2 3 4 TOTAL OPTIONS To great extent To some extent Satisfactory Not satisfied NO OF RESPONSES 18 50 20 12 100 PERCENTAGE% 18% 50% 20% 12% 100%

50
40 30 20
satisfactory To great extent

To some extent

10
Not satisfied

NO OF RESPONSES

Interpretation:
The survey revealed that most of the employees to some extent accepted that Heritage Foods (India) Limited provides scope for the employees development and some are satisfactory.

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14.There is no discrimination and there is high degree of social integration at the Workplace?

S.NO 1 2 3 4 TOTAL

OPTIONS To great extent To some extent Satisfactory Not satisfied

NO OF RESPONSES 18 50 20 12 100

PERCENTAGE% 18% 50% 20% 12% 100%

50 40 30 20 10 0 NO OF RESPONSES
Interpretation:
The survey revealed that most of the employees agree and strongly agree that there is no discrimination and there is high degree of social integration at workplace.

Strongly agree Agree Neutral disagree

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15.To what extent do you think that you are best suited for the job? S.NO 1. 2. 3. 4. TOTAL OPTIONS To great extent To some extent Satisfactory Not satisfactory NO OF RESPONSES 50 28 22 0 100 PERCENTAGE% 50% 28% 22% 0% 100%

50 40 30 20
satisfactory To great extent To some extent

10
Not satisfactory

0 NO OF RESPONSES

Interpretation:
The survey revealed that most of the employees to great extent they think that they are best suited for the job and some employees to some extent and satisfactory.
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16.Which techniques are used to improve your work life?

OPTIONS By doing hard work With patience Understanding others Balancing both personal work &official work

NO OF RESPONSES 26 18 12 44

45 40

By doing hard work

35
30 25 20 15 10 5 0 NO OF RESPONSES
Balancing both personal work &official work Understanding others With patience

Interpretation:
The survey revealed that most of the employees are using the techniques to improve their work life by balancing both personal work and official work and some employees by doing hard work and some with patience and by understanding others.

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17.How often do you go home in time?

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Occasionally Daily Rarely Never

NO OF RESPONSES 38 44 18 0 100

PERCENTAGE% 38% 44% 18% 0% 100%

45 40 35 30 25 20 15 10 5 0 NO OF RESPONSES
Occasionally Daily Rarely Never

Interpretation:
The survey revealed that most of the employees often go home in time by occasionally and some they go daily and some are rarely.
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18.How often your official commitments obstruct your personal and family works.

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Always Often Rarely Never

NO OF RESPONSES 12 32 46 10 100

PERCENTAGE% 12% 32% 46% 10% 100%

50 45 40 35 30 25 20 15 10 5 0 NO OF RESPONSES

Always Often Rarely Never

Interpretation:
The survey revealed that most of the employees are rarely obstruct their official commitments in their personal and family works and some are often and always.
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19.How often your personal works obstruct your official commitments? S.No OPTIONS NO OF RESPONSES PERCENTAGE%

1. 2. 3. 4. TOTAL

Always Often Rarely Never

12 16 44 28 100

12% 16% 44% 28% 100%

45 40 35 30 25 20 15 10 5 0 NO OF RESPONSES

Always Often Rarely Never

Interpretation;
The survey revealed that most of the employees are rarely obstructing their personal work in their official commitments and never for some employees.

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20.The suggestion scheme in your organization is.

S.NO 1. 2. 3. TOTAL

OPTIONS Very Effective Good Ineffective

NO OF RESPONSES 20 56 24 100

PERCENTAGE% 20% 56% 24% 100%

60 50 40

30
20 10 0 NO OF RESPONSES
Interpretation:

Very Effective Good Ineffective

The survey revealed that the suggestion scheme is good and very effective in Heritage Foods (India) Limited.

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21.Quality orders are instrumented improving quality in work?

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Strongly Agree Agree Neutral Disagree

NO OF RESPONSES 22 50 16 12 100

PERCENTAGE% 22% 50% 16% 12% 100%

50 45 40 35 30 25 20 15
Strongly Agree Agree Neutral Disagree

10
5 0 NO OF RESPONSES

Interpretation:
The survey revealed that most of the employees agree for quality orders are instrumented for improving quality in work and some are strongly agree.

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22.Recognition & rewards are given based on employee performance.

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Strongly agree Agree Neutral Disagree

NO OF RESPONSES 18 48 16 18 100

PERCENTAGE% 18% 48% 16% 18% 100%

50 45 40 35 30 25 20 15 10 5 0

Strongly agree Agree Neutral Disagree

NO OF RESPONSES
Interpretation:
The survey revealed that most of the employees agree and strongly agree for recognition and rewards are given based on employee performance but some are disagree.

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23.Are you able to balance your personal requirements without affecting your job Requirements?

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Always Often Rarely Never

NO OF RESPONSES 46 36 18 0 100

PERCENTAGE% 46% 36% 18% 0% 100%

50 45 40 35 30 25 20 15 10 5 0 NO OF RESPONSES

Always Often Rarely Never

Interpretation;
The survey revealed that most of the employees are always and often able to balance their personal requirements without effecting their job requirements.

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24.How often social gatherings in departmental meetings are conducted in your Department.

S.NO 1. 2. 3. 4. TOTAL

OPTIONS Once in a year Quarterly once Monthly once Never

NO OF RESPONSES 32 38 10 20 100

PERCENTAGE% 32% 38% 10% 20% 100%

40 35 30 25 20 15
Once in a year Quarterly once Monthly once Never

10
5 0 NO OF RESPONSES

Interpretation:
The survey revealed that social gatherings and departmental meetings are conducting less in Heritage Foods (India) Limited i.e. by quarterly once and yearly once.

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FINDINGS
Employees feel that they are very important person in the deportment, which shows their level of commitment.

Employees in HERITAGE FOODS INDIA LTD can see themselves in a better position in near future which indicates the carrier growth on the company.

Company successful in providing good working conditions.

Megacity of the respondents feels that they are under paid.

Employees in the HERITAGE FOODS INDIA LTD have good relationship with their peers, superiors and sub-ordinates.

All most all the employees have positive attitude of the management towards security as employees feel highly secured in HERITAGE FOODS INDIA LTD.

Half of the Employees are not satisfied with the personal development.

Employees in HERITAGE FOODS INDIA LTD are satisfied with the company policies and procedures.

Employees in all dept are well planned while performing their activities.

On the whole employees in HERITAGE FOODS INDIA LTD have Job Satisfaction the contributing factors for their satisfaction are good relationship, Working conditions, Company polices and other benefits.

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SUGGESTIONS

The conclusions so far drawn from the study tempts to offer the following suggestions for making the organization ready for Evaluation. The conclusions drawn above convince anybody to identify the following areas to chart out for job evaluation programs for the executives to make them completely ready for Evaluation A general training program covering the importance of and need for employee Evaluation in the light of global competition is to be designed in brainstorming session involving internal and external experts.

The present study identifies the following areas in which training is to be undertaken.

A training program may be undertaken for Executives in general and to Senior Executives in particular to convince and make them accept the Evaluation concept.

Executives working in technical areas to be trained effectively in the areas of their role and interpersonal dependence and relations to make Evaluation more fruitful.

A training program may be undertaken about "Shared Leadership" which brings high morale and high productivity and makes the Evaluation a success.

The subordinate staff that is going to be empowered must be ready to take up this responsibility. A study is to be conducted among the subordinate staff to find out their readiness to discharge the new roles under this Evaluation program. This helps in

identifying the training areas, to make the subordinate staff completely ready for undertaking Evaluation.

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CONCLUSIONS
In the above perspective, the present chapter makes an attempt to draw some conclusions. It should be confessed here that the investigator is conscious of the limitations of the study and the conclusion drawn on the basis of the sample from a single unit cannot be generalized about the entire manufacturing sector. The study examines the readiness for employee Evaluation in six aspects, namely effective Communication, Value of people, Clarity, Concept about power, Information and Learning. A perusal of data pertaining to combination makes us to conclude that the Executives have agreed to the effective down ward communication flow, which is a prerequisite for Evaluation. With regard to value of people, the analysis leads to the conclusion that the Executives give a reasonable value to the Human Resources in the Organization. However, in respect of concept about power, they are somewhat agreed to share the power. As far as information sharing with lower rungs is concerned, they are very positive. One significant conclusion with regards to learning opportunities, which is a basic for Evaluation, is that the executives are favorable and feel that sufficient learning opportunities should be there for the rank & file. As far as clarity is concerned, the executives are somewhat agreed i.e., neutral. The aspect wise percentage analysis leads to the conclusion that the organization is somewhat ready for employee Evaluation because the majority of the Executives in almost all aspects are concentrated in somewhat ready group

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QUESTIONNAIRE
Date.....................Job title.......................... Number of persons employed. Signature- jobholder.... Signature supervisor. Brief job summary.......

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1.Whether you are given any incentives / appreciation / rewards by the company when you do at your work? A) Yes B) No C) Some time D) Cant ( ) ( )

2.Have you been informed about the objectives of your organization? A) Yes B) No C) Some time D) Cant say

3.Technology and better work environment leads to more productivity Do you agree? A) Agree B) Disagree C) Agree to some extent D) Cant say

4.Do you feel job enrichment helps in individual development? A) Agree B) Disagree C) Agree to some extent D) Cant say

5.Do you feel that your job is secured? A) Yes B) No C) Doubtful D) cant say

6.In your department work is distributed in a fair manner? A) Yes B) No C) Some time D) Cant say

7.Do you feel that you are having a good report with all your peers and superiors? A) Very good B) Average C) Below Average D) Low

8.Do you feel that working atmosphere is friendly in nature at your work place? A) Agree B) Disagree C) Agree to some extent D) Cant say

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9.Do you feel to do your duty out of your commitment to job or because of the fear of survival? A) Yes B) No C) Some times

10.Are you accustomed work under many supervisors for the same nature of work? A) Yes B) No C) Some time D) Cant say

11.Is the physical working conditions are taken care by superiors? A) Yes B) No C) Some time D) Cant say

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BIBLIOGRAPHY: PUBLISHER 1. MC GRAW HILL COMPANY SINGAPORE 2.THE HINDU OCT23RD 1999 Chandran Pillai.G Empowerment-What Does It Mean? 3.TATA MC GRAW HILL Harold Koontz Heinz Weihrich Essentials Of Management AUTHOR Freed Luthans BOOK Organizational Behaviour

Web sites: www.heritagefoods.co.in www.retailindia.com www.wikipedia.org

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