CHAPTER- 1

AIM &ESTABLISHMENT OF THE COMPANY

1

Establishment of the Company

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

engineering. It was this company that in 1919 under one roof the scientific expertise

and decades-long experience of the top three lamp producers in Germany. Only 1,

1919 a limited partnership, OSRAM GmbH, was called into existence in Berlin

by the manager of Allgemeine Elektricitats - Gesellschaft , Deutsche

Gasgluhlicht - Aktiengesellschaft ( Auergesellschaft ), and the electric lamp

production facilities of Sieman & Halske.

The Auergesellschafthad already in 1906 Registered the name OSRAM with the

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

1906 was thus the birth date of a trade name that was destined to win world renown

: OSRAM. The origin of the OSRAM name came about thus : OS - (OS)MIUM

which is a lamp making metal.

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

intertwined. Again and again , new developments from OSRAM have changed

the way we live.

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

the development of the first twin filament headlight lamp worth high and low beams.

These BILUX lamps became famous throughout the world. From filaments to

fluorescents - In 1936, OSRAM launched the first fluorescent lamp. Its economical

light revolutionized artificial lighting in offices, shops, factories and public buildings.

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

specialists as OSRAM set the incandescent lamp on a completely new course in

1960.

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

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

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

luminous efficacy.

2

Company Profile

Osram profileOsram is one of the two leading light manufacturers in the world. In the 2010

financial year, it achieved a turnover of €4.7 billion. OSRAM is a high-tech company

in the lighting sector and 70 percent of its turnover comes from energy-efficient

products. The company, which is very much internationally oriented, has around

40,000 employees worldwide, supplying customers in 150 countries worldwide from

its 42 production sites in 16 countries (30 September).

 Innovation, the motor for growthOSRAM is a leading player across the entire lighting value chain. This holds true both

for classic lighting as well as new technologies. With LED-based products making up

a share of 20 percent of the total turnover, the company is setting the trend with

regard to technological changes in the lighting market. The expenditure for research

and development is at approximately 5.5% of turnover.

 Light for every walk of lifeThe highest sales are achieved by the General Lighting division. OSRAM is the

world's number one supplier of automotive lamps and LED for vehicles. OSRAM is

also one of the market leaders in the field of electronic control gear (ECG) for lamps.

Business with optical semiconductors is growing rapidly and has taken on major

strategic importance. The special display-optic lamp sector is also characterized by a

high rate of innovation

Over 100 years of OSRAMThe OSRAM brand name was registered way back in 1906 and is one of the oldest

trade names still recognised throughout the world. On July 1, 1919 AEG, Siemens &

Halske AG and Deutsche Gasglühlicht AG (Auer Gesellschaft) merged their light

bulb production activities. Today, Siemens AG is the sole shareholder in OSRAM

AG.

3

OSRAM AG

Represented by Wolfgang Dehen, Dr. Klaus Patzak and Martin Goetzeler

Hellabrunner Strasse 181543 MunichGermany

Facts & Figures

OSRAM is one of the two leading lighting manufacturers in the world. Light from

OSRAM shines in about 150 countries. With sales outside Germany accounting for 88

% of total turnover and a sales presence on every continent.

 

In the 2008 fiscal year, OSRAM's more than 40.000 employees produced sales of

€4.6 billion.

Worldwide sales by divisions 

 

4

The General Lighting division is our strongest sales performer. Innovative

products secure our strong position in all sales channels

We are the world market leader in both conventional and semi-conductor-

based light sources for vehicles

We occupy a leading world market position in electronic control systems

Business with opto semiconductors is growing rapidly and has taken on major

strategic importance

The special display-optic lamp sector is also characterised by a high rate of

innovation

The Precision Materials & Components division benefits from the know-how

gained in using special materials and techniques

Worldwide sales by markets 

OSRAM is a global player: we generated 88 percent of our sales outside of Germany. 

5

Employees  

On the cut-off date, September 30, 2008, OSRAM had a work force of 43.556

employees in its consolidated companies worldwide.

 Five-Year Overview 

Sales figures declined by 1 percent to EUR 4.6 billion in fiscal year 2008. When the

6

figures are adjusted to currency effects, we ultimately achieved sales growth of 4

percent.

INTRODUCTION TO COMPANY

OSRAM India Pvt. Ltd. Sonepat

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

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

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

environment of Sonepat (Haryana).

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

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

having its registered at New Delhi, was primarily formed for sales and marketing

operations in India. The company has got three regional offices at Bombay, Calcutta

and Bangalore in addition to 14 other distribution centers. The total turnover of

OSRAM India pvt. Ltd. Were worth Rs.42 crore in acquisition, innovation and

expansion has been regular feature of this plant. Currently a high speed CFL

manufacturer line and slim tube manufacture line have been brought from (Germany).

With this new induction, total investment at this to approximately Rs.100 crore.

OSRAM India Pvt. Ltd. Has Government’s approval for manufacturing and

Trading of the following lamps:-

Metal Halide and High Intensity discharge lamps.

Tri phosphor and energy efficient fluorescent tubes.

Automotive Halogen and Discharge lamps.

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

Other high technology, innovation lamps for Medical, Germicidal,

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UV lamps.

Incandescent Lamps.

Note: all figures are fictitious.

Types of services/products given/produced

Producing more light with less energy is our maxim. We are increasingly focusing on the

overall life cycle of our products, from environmentally sound product design to

environmentally sound disposal. In addition, we strive to reduce the amount of mercury and

other toxic chemicals that are required for certain types of lamps and, whenever possible, find

replacements for these harmful substances.

The EU directive 2002/95/EG on the of the use of certain hazardous restriction substances in

electrical and electronic equipment (RoHS), that was implemented on July 1st, 2006, forbids

the use of certain hazardous substances such as lead, chrome VI, cadmium mercury, and

specific flame retardant agents in electronic product (PBBs AND PBDEs)

 They do not only confine ourselves to the legal minimum requirements but also strive to

systematically reduce ecologically relevant substances. As we can only avoid or deplete

materials that we know of, we ask our suppliers to clearly index all substances contained in

their products on the basis of our index list. This list contains all prohibited toxics as well as

all substances we try to avoid. Substances that can be found on that list have to be declared

and the compliance of this list is mandatory for all our suppliers.

Due to our responsibility for the safe handling of our products, we also provide our customers

with eco-information on our products. Technical tips and suggestions for safe handling are

included as well as helpful advice for disposal at the end of the lamp's useful life. Acting

responsibly, our engagement for active and sustainable environmental protection, and our

social commitment constitute the basic values of our company and are represented in our

business principles.

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LED

In contrast to incandescent lamps, light-emitting diodes produce light in a certain color. This

color varies depending on the materials system used and ranges from yellow, orange, and red

to green and blue.

HALOGEN LAMPS WITH IRC TECHNOLOGY

Halogen light has virtually the same spectrum of light as the sun, so colors look natural under

halogen lamps. In comparison to conventional incandescent lamps, halogen lamps feature a

high degree of color stability, high lighting efficiency, and a much longer service life.

XENARC

A growing number of new car buyers and used car owners are equipping their vehicles with

OSRAM Xenon headlights. According to automotive industry experts, nearly 45% of all

newly registered cars in Europe have these new safety lights.

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PLANON

PLANON is a new high-performance discharge lamp from OSRAM that looks like a tile. The

special shape and constant high light performance of PLANON creates new construction

possibilities and applications.

ENDURA

OSRAM developed the ENDURA system especially for application areas where changing

lamps is extremely costly and difficult, such as tunnel lighting or lighting for industrial

production areas.

10

Product offerings from OSRAM India

OSRAM India is in a position to supply all products listed in the E-Catalogue with

major focus on:

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

Low Voltage and Mains Voltage Halogen Lamps

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

Phosphor Lumilux plus Lamps.

The widest range of Compact Fluorescent Lamps, in particular, the retrofit

Dulux EL which meets the Indian conditions of wide fluctuations in voltage,

high ambient temperature and high humidity.

HID Lamps including high pressure Mercury Vapor Lamps (HQL), Blended

lamps (HWL), High Pressure Sodium Vapor Lamps (NAV), Metal Halide

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

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

Wheelers.

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Incandescent lamps Tungsten halogen lamps

Compact fluorescent lamps

/ Energy saving lampsLED lamps

Fluorescent lampsHigh intensity discharge (HID)

lamps

Special lampsDisplay and signal lamps and

lamps for traffic light installations

LED systems, Light

Engines and ModulesOLED light design

Automotive lamps Display/Optic

Control gears Light management systems

LuminariesOSRAM Opto Semiconductors:

LED and optical semiconductors

\

Mission statement and aim of the company

12

OUR VISION

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

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

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

OSRAM India.

Vision is:-

OSRAM No.2 in lamps business in India.

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

And ECG.

OSRAM the most respected brand name in the country.

OSRAM products available in all parts of India.

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

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OUR MISSION

We shape the future of light

By advancing solutions for

Illumination

Visualization

and Sensing

OUR VALUES

To achieve our vision, we build on:

Speed

We value the opportunities of change

We drive performance by speed in processes and projects

Quality

We provide best quality and service to our customers from the beginning

We strive for continuous improvement and show zero tolerance to defects

Focus

We set priorities and are consistent in achieving our targets

Our focus is driven by our customers` expectations

Trust

We encourage and honor initiative, creativity and commitment

We build on the capabilities of each other and value working in teams

14

CHAPTER-2

POLICY OF THE COMPANY

15

CORPORATE CITIZENSHIP

UN GLOBAL COMPACT

OSRAM is committed to behaving responsibly towards people and the environment. To

support this commitment we have signed up to the Global Compact initiated by UN General

Secretary Kofi Annan. See our communication on Progress

SOCIAL COMMITMENTAs a global company Osram does business in many cultures and societies and are involved in

local activities. For example, around 90 percent of the employees at our factory in New York,

USA support the company's charity projects with voluntary work or donations. Employees

build houses for the "Habitat for Humanity" scheme; donate clothing and food for needy

children and books for the local reading and writing education center.

DEVELOPMENT PROJECTSOSRAM works together with NGOs (Non-Governmental Organizations) for projects in

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developing countries. These projects include lighting for regions without a permanent power

supply, and technology for mobile water purification. The African Medical and Research

Foundation (AMREF) is currently testing OSRAM water purification lamps for use in Kenya.

EDUCATIONOSRAM China provides support to poor families so that their children can go to school.

OSRAM employees provide the children with financial help for day-to-day living.

ARTWith our Art Projects at our Munich gallery we promote young artists who take new

approaches. The gallery was established 40 years ago. The latest additions are LED lighting

masts. On the SEVEN SCREENS in front of OSRAM headquarters in Munich we are

displaying digital art in public. Once or twice a year, artists will be invited by OSRAM to

develop works of art on a local theme.

ENVIRONMENTAL PROJECTSThe giant tortoises on the Galapagos Islands are threatened with extinction. Scientists at the

Darwin Research Station have given the tortoises a lifeline with the help of OSRAM by

incubating their eggs under OSRAM lamps.

OSRAM ENVIRONMENTAL GUIDELINES

17

The OSRAM environmental guidelines were introduced in 1998. They were signed by the

chairman of the management Dr. Wolf Dieter Bopst, the managing director for technology Dr.

Jorg Schaefer and the managing director for finances & personnel Dr. Thomas Seeberg.

Osram hereby commit us to respect the environment, assume responsibility for it, deal with

resources economically and avoid any negative impact on the environment. We underline our

commitment to active environmental protection with these environmental guidelines. They

apply to all OSRAM activities and to each individual employee.

ENVIRONMENT, HEALTH SAFETY & SOCIAL

POLICY

18

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

environment by complying with relevant legal requirement.

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

principle for implementation.

To conserve natural resources by optimum utilization minimization wastage of

Raw Material, water energy & other associated factors affecting the

Environment.

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

through awareness / training about EHS aspect and hazards and motivate them

for active participation.

The management shall review EHS performance at regular interval for continual

improvement.

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CHAPTER-3

ORGANIZATIONAL STRUCTURE OF THE COMPANY

ORGANIZATIONAL STRUCTURE OF OSRAM INDIA PVT LTD.

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MANAGING DIRERCTOR

Sr. V.P.FinanceContorlling V.P. Manufacturing

MIS & Works

Controlling Secretary

Lamp-Productio

n

QCLamp

GlassPlant

Safety Engine-ering

Security G.O.EPurchase

T-12 Process/Final FTL/CFL/GP/

INCOMING

TrainingCentre

Supply chain

management

T-8

Packaging

Mechanical/ProjectsCFLLAB &

CoatingMech. Maintenance T-12,

T-8 &CFL Glass PlantUtilities Mech/SafetyUtility

Management of Osram

21

V.P. HR

HRFactory Affairs/Legal

WorksControlling

Medical

HR

Utilities/Power/Electrical

Maintenance

ElectronicsMaintenance

Spare Parts Incoming Inspection Workshop/Design

Wolfgang DehenChairman of the Managing Board

Dr. Klaus PatzakChief Financial Officer

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Martin GoetzelerChief Operating Officer

Fran PiscitelliHead of Region Asia / Pacific

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CHAPTER-4

INTRODUCTION TO THE PROJECT & REVIEW OF

LITERATURE

24

INTRODUCTION TO THE PROJECT

(LABOR EFFICIENCY)

LABOR FORCE

The total number of people employed or seeking employment in a country or region is

called Labor force or Work force.

EFFICIENCY

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

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

producing any given output, including personal time and energy.

LABOR EFFICIENCY VARIANCE

Labor efficiency variance is calculated by comparing the actual hours worked with

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

figure is determined by multiplying the number of direct labor hours established or

predetermined to produce during the period for which the variances are being

computed. The units produced are the equivalent units of production for the labor cost

being analyzed. Labor efficiency variance is also known as labor time variance and

labor usage variance.

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

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

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

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

Required: Calculate direct labor efficiency variance.

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Solution:

  Time × Rate = AmountActual hours worked at actual rate

1,880  $6.00

standard   $11,280

Actual hours worked at standard rate

1,590  $6.00

standard   9,540

       

  290      $1,740 unfav.

       

The standard hours allowed is the result of multiplying 530 units of product by three

standard hours per unit. The unfavorable labor efficiency variance of $1,740 is due to

the use of 290 hours in excess of standard hours allowed.

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

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

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

result in an unfavorable labor rate variance, since the actual hourly rate of pay will

exceed the standard rate specified for the particular task. In contrast, a favorable rate

variance would result when workers who are paid at a rate lower than specified in the

standard are assigned to the task. However, the low pay rate workers may not be as

efficient. Finally, overtime work at premium rates can be reason of an unfavorable

labor price variance if the overtime premium is charged to the labor account.

26

CAUSES OF UNFAVOURABLE LABOR EFFICIENCY/USAGE

VARIANCE:-

Poorly Trained Workers

Poor Quality Materials

Faulty Equipment

Poor Supervision

Insufficient Demand For Company’s Product

Who is Responsible for the Labour Efficiency/Usage Variance?

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

variance. If customers’ orders are insufficient to keep the workers busy, the work center

manager has two options, either accept an unfavorable labor efficiency variance or build up

inventories. The second option is opposite to the basic principle of just in time (JIT). An

inventory with no immediate prospect of sale is a bad idea according to just in time approach.

Inventories, particularly work in process inventory leads to high defect rate, obsolete goods,

and generally inefficient operations.  As a consequence, when the work force is basically fixed

in the short term, managers must be cautious about how labor efficiency variances are used.

Some managers advocate dispensing with labor efficiency variance entirely in such situations

at least for the purpose of motivating and controlling workers on the shop floor.

This paper probes the role of labour efficiency in promoting energy efficiency and economic

performance with reference to small scale brick enterprises' cluster in Malur, Karnataka State,

India. In the bricks industry, the technology in use being similar, labour efficiency has a

negative influence on energy cost. Therefore, those enterprises that exhibited higher labour

productivities had lower average energy intensity and higher returns to scale as compared to

those that had lower labour productivities. Considering this, improvement of labour efficiency

can be an alternative approach for energy efficiency improvement in energy intensive small

scale industries in developing countries like India, which face the obstacle of financial

constraints in up-grading technology as a means of energy efficiency improvement.

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Workforce productivity is the amount of goods and services that a worker produces in a

given amount of time. It is one of several types of productivity that economists measure.

Workforce productivity can be measured for a firm, a process, an industry, or a country. It was

originally (and often still is) called labor productivity because it was originally studied only

with respect to the work of laborers as opposed to managers or professionals.

The OECD defines it as "the ratio of a volume measure of output to a volume measure of

input".[1] Volume measures of output are normally gross domestic product (GDP) or gross

value added (GVA), expressed at constant prices i.e. adjusted for inflation.

The three most commonly used measures of input are:

hours worked;

workforce jobs; and

Number of people in employment.

Measured labour productivity will vary as a function of both other input factors and the

efficiency with which the factors of production are used (total factor productivity). So two

firms or countries may have equal total factor productivity (productive technologies) but

because one has more capital to use, labor productivity will be higher.

Output per worker corresponds to the "average product of labour" and can be contrasted with

the marginal product of labor, which refers to the increase in output those results from a

corresponding (marginal) increase in labor input.

28

REVIEW OF LITERATURE

SOURCE-1: www.endseurope.com

8Aug2011

Resource efficiency lags behind labour gains - study

ENDS Europe (subscription) - 8 Aug 2011

The report attributes the difference to tax regimes that have made labour more expensive

while resources costs have generally fallen. Resource efficiency ... Energy and resource

efficiency have improved more slowly in the EU than worker productivity, according to a

survey of the last three decades compiled for the European Environment Agency.

SOURCE-2: www.deccanherald.com

2 Aug 2011

Contract labour for business advantage

Deccan Herald - 2 Aug 2011

Whereas in contact labour, the external organization appoints the people in its right solution

not only to save on costs but also to improve efficiency. Whereas in contact labour, the

external organization appoints the people in its role and deploys them to your organization.

These contract workers will work in your premises under your supervision.

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SOURCE-3: www.ghananewsagency.org

9 Aug 2011

Official says we will bring efficiency into small-scale mining

Ghana News Agency - 9 Aug 2011

Has said he would bring more efficiency into small-scale mining and reduce child labour,

prostitution, drug abuse and growing truancy among school. The policy of the government, he

said, was to develop the industry to become as efficient as their large-scale counterparts,

adding that it was for this reason that the Natural Resources and Environmental Governance

(NREG) Programmed was being implemented.

     

SOURCE-4: www.leftfootforward.org

17Aug 2011

Government needs to take on the energy companies to bring down

prices

Left Foot Forward - 14 hours ago

The Labour government brought in winter fuel payments to the elderly to tackle ... as to what

levels of insulation and energy efficiency must be achieved. The Labour government brought

in winter fuel payments to the elderly to tackle fuel poverty and will point to figures that show

the number of excess winter deaths plummet from almost 50,000 in 1999/2000 to 25,000 in

2009/20

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Assembly Process(Spiral)

31

Assembly Process(Stick Type)

32

Types of Labour in Osram India Pvt. Ltd.

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

PermanentLabour which is recruited through

recruitment process( HR deptt.), basically from ITI or

internal training center

Casual Labour which is recruited on daily basis from

three contracting agencies:-

Bhagwati Pvt. Ltd.

Surya Packing Pvt. Ltd.

Shivam Pvt. Ltd.

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Man-day

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

Actual Production Per Hour

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

Actual production per hour = Total output of a day

Total number of man hours in a day

34

FACTORS AFFECT LABOUR EFFICIENCY

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

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

Behavior differently. Some observations are as follows;

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

and indirectly “

Behavior is observed directly by studying the responses of people to their work

environment indirect observation refers to those people describe decision making

processes and attitude verbally.

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

interaction between individual characteristics and the characteristics of the

environment in which behavior occurs.

Personal characteristics remain inside the person whereas environmental once outside

the person. These personal and environmental characteristics secure as foundation of

individual behavior in the efficiency of there work.

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THE CAUSES OF HUMAN BEHAVIOR ON THE

EFFICIENCY OF THE WORK

INHERITED CHARACTERISTICS: Some of the characteristics inherited

from birth, may or may not be changed by external environment

PHYSICAL CHARACTERISTICS: - relate to height, slim body, and

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

skills.

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

as psychological ways

INTELLIGENCE:-Some people are born Intelligent However intelligent can

be enhanced with efforts, hard work proper environment and motivation.

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

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

fulfillment.

36

LEARNED CHARACTERISTICS: These characteristics involve

individual’s attitudes, values and perceptions about the environment in which he/she

function. They are a result of parental values and expectation.

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

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

manner in which a person experiences the world.

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

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

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

which will enable him to perform that task effectively.

ATTITUDES: - it may be defined as the way a person fells about something- a

person, a place, a commodity, a situation or an idea. It addresses an individual’s

positive or negative feeling about some object.

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

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

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

and what is wrong. The values behavior pattern.

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FACTORS AFFECTING LABOUR EFFICIENCY

ENVIROMENTAL FACTORS:-

ECONOMIC FACTORS- the economic environment is an important

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

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

employment level, wage rate, economic outlook and technological change rate.People

work for money but not only for money. However wages satisfied various needs of

individuals.

POLITICAL FACTORS- the stability of government can affect the

employment opportunities both in quantity and quality. Management structures and

philosophies in controlled societies have a significant impact on decision, strategies

and methods of implementation available to managers. The relative freedom available

can affect carrier choice, job design, motivation methods and finally individual

behavior.

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

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

and these variation produce different behavior across the country.

LEGAL ENVIRONMENT: rules and laws are formalized ad written standards

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

all members of society observing laws voluntarily allow predictability of individual

behavior.

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ORGANIZATIONAL FACTORS :- the characteristics of an organization

are also affects human behavior.

PHYSICAL FACILITIES: The physical facilities such as ventilation ,proper

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

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

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

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

ORGANISATIONAL STRUCTURES AND DESIGNS- It refers to the

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

emoting relationship and lines of communication are established among different

departments in the organizations.

QUALITY OF LEADERSHIP-The organizational establish a system of

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

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

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

extent influenced by their leaders.

REWARD SYSTEM:-Organization establishes reward system to compensate

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

organization.

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INDIVIDUALS DIFFERENCES AT WORKPLACE

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

in attaching importance to awards.

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

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

wage system, while others may like to prefer piece wage system.

3) STYLE OF LEADERSHIP- People may differ in the style of leadership

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

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

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

some may prefer to flight stresses.

5) PERSONNEL CHARACTERISTICS- People differ in their personnel

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

40

INDIVIDUAL DIFFERENCES AND ORGANIZATION

BEHAVIOR

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

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

characteristics are irrelevant to under standing organizational behavior rather

organizations come.

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

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

interpersonal differences.

Almost organizations have policies, procedures rules and other formal

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

standards of acceptable and unacceptable behavior.

Almost all organizations differentiate roles horizontally, creating unique jobs and

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

roles. Organizations also differentiate roles vertically by creating levels of

management

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

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

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

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

appropriately’-which mean adapting to the implied dress norms.

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Models Of A Man Based On Individual Differences

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

doubtful whether the management can perform its function successfully without

having understanding why people behave as they do. It based on individual

differences; individual differences are classified in to certain models or type.

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

maximizing oneself interest. This assumptions are :

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

from his efforts.

Man is able to evaluate the alterations available.

Man is motivated by economic interest.

The organization controls the economic activities.

Organization can be designed to control rational feelings and avoid unpredictable

behavior.

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

determine the actions he takes in motivating and controlling people.

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

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

the organization for the productive purpose.

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

them.

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

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

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

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

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

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

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

Man is motivated by its social needs.

Man is more responsive to group pressure.

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

social needs.

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

belongingness.

Social man concept is the invention of researchers which behavioral scientist has

carried out from time to time begom hawthorn experiments.

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

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

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

The group is a source of creativity.

Belongingness is the ultimate need of individual.

Generally organization means emphasis that there is no conflict between

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

sacrificing the individual interest in favor of organizational interest. Its implications

is that management will design its various actions high will satisfy the people.

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

interest.

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

overcome limitations to work .the managers normally take following.

The various needs can be put in hierarchical.

Man moves from immaturity to maturity.

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

Achievement of people to release greater potential for commitment to

Organizational goals

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

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CHAPTER-5

METHODOLOGY

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RESEARCH METHODOLOGY

RESEARCH

“RESEARCH IS SEARCH FOR KNOWLEDGE”

OR“RESEARCH IS SYSTEMATIC EFFORTS TO GAIN

KNOWLEDGE.”

RESEARCH DESIGN

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

WHICH IS USED AS A GUIDE IN COLLECTING AND ANALYZING THE

DATA COLLECTED.”

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

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

and procedures for acquiring the information needed to conduct the research

effectively. It is the overall operational pattern of the project that stipulates what

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

TYPES OF RESEARCH DESIGN

Research design can be classified into following types:-

Descriptive research design

Exploratory research design

Experimental research design

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The study of Recruitment & Selection In Danblock Braking India Pvt. Ltd is exploratory in

nature. Exploratory research is conducted into an issue or problem where there are few or no

earlier studies to refer to. The focus is on gaining insights and familiarity for later

investigation. Exploratory studies are typically structured with clearly stated hypothesis. They

are more flexible while descriptive studies are those studies, which are concerned with

describing the characteristics of particular individual or a group and they follow a more rigid

format. These studies are concerned with specific prediction, with narration of facts and

characteristics concerns individuals, group or situation.

Exploratory research often relies on secondary research such as reviewing available literature

and/or data. Or qualitative approaches such as informal discussions with consumers,

employees management or competitors, and more formal approaches through in-depth

interviews, focus groups, projective methods, case studies or pilot studies. The internet allows

for research methods that are more interactive in nature.

RESEARCH DESIGN

Research design facilitates the smoothness of various operations there by making research as

efficient as possible, yielding maximal information with minimal expenditure of efforts, time

and money

TYPE OF DATA COLLECTION

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

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

data collected from indirect sources.

PRIMARY SOURCES

These include the survey or questionnaire method, telephonic interview as well as the personal

interview methods of data collection.

SECONDARY SOURCES

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

website, competitor’s websites etc, newspaper articles etc.

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

website as a secondary source

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FINDINGS OF THE STUDY

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

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

organization.

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

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

to solve them if it is within their reach.

Most of the workers feel that unbalanced interpersonal relations affect the

efficiency level of employees mainly due to stress which is mainly caused

because of individual and organizational related factors.

The negative behavior of workers is mainly due to psychological and

behavioral problems although they get full co-operation and unbiased attention

from their superior in their work place.

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

competition.

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

To some extent, the management is concerned about maintaining good

relations with trade unions.

LIMITATIONS

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

data provided and the survey done are authentic as they could be, but there are some

limitations, which are mentioned below :

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

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

collect it, due to lack to time.

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

to wrong conclusion.

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

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

to leak in the head office.

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CHAPTER -6

INTERPRETATIONS AND ANALYSIS OF DATA

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DATA ANALYSIS

ACTUAL OUTPUT PER HOUR OF DIFFERENT

LINES

LINE OUTPUT

MAN-HOURS

ACTUAL OUTPUT/HOURS

PRODUCTION LINE-1

300216 6804 44.12

ASSEMBLY LINE-1

410980 9656 42.56

SPIRAL 170978 5496 31.11

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INTERPRETATIONS

SWOT ANALYSIS

STRENGTHS:-

a) The globally cost competitive

b) Adheres to strict quality controls. Has access to latest technology.

c) Provides support to critical infrastructure and metal industries.

WEAKNESSES:-

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

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

Most component companies are dependent on global majors for

technology

OPPURTUNITIES:-

a) May serve as sourcing hub for lamps globally.

b) Majors significant export opportunities may be realized through

diversification of export basket.

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

cascading impact of price.

THREATS:-

a) The presence of large counterfeit components market poses a

significant threat.

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

competition in the replacement market. Further marginalization of

smaller player’s likely outlook

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PESTE ANALYSIS

POLITICAL ENVIRONMENT

The stability of government can affect the employment opportunities; both in quantity

and quality .politically unstable environment have difficulty and attracting experience

problems in maintaining steady level of employment.

The political ideology of a country affects interpersonal behavior primary through

relative freedoms available to its citizens. Management structures and philosophies in

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

methods of implementation available to manager’s .The relative freedoms can affect

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

ECONOMIC ENVIRONMENT

The Economic environment is an important determinant for the efficiency of the

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

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

economic outlook and technological change.

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

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

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

adverse effect on employees

SOCIAL ENVIRONMENT

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

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

different behaviors across the country .culture vary between two regions with in a

country too and these variations produce different behaviors across the country.

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

factors having behavioral implications as suggested by Stephens’s p.robbins.it

always desirable for organization effectiveness that direct there must be direct

relationship between effort and reward.

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TECHNOLOGICAL ENVIRONMENT

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

potential effects on individual job opportunities

Technological change has its strongest effect at lower level jobs although increased

automation, computerization and more sophisticated production technologies can

affect individuals at all levels.

LEGAL ENVIRONMENT

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

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

Observing laws voluntary allows for predictability of individual behavior which will

give a great impact on the efficiency of the labor.

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CHAPTER-7

DISCUSSION OF RESULTS AND CONCLUSIONS

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DISCUSSION OF RESULT AND CONCLUSIONS

Actual Production per Man-Hour of Production Line-1 is 44.12.Actual Production per Man-

Hour of Assembly Line-1 is 42.56..Actual Production per Man-Hour of Production of

Spiral is 31.11,

In the organization most of employees are satisfied with all the facilities provided by

company. But there are some employees also who are not satisfied with the company.

Management should try to convert unsatisfied employees in to satisfied employees.

Because if employee is not satisfied than the he is not able to give his 100% to his work and

the productivity of employee decrease.

Management should try to satisfy his employees because employees are the assets of

the company not a liability.

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RECOMMENDATIONS

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

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

To realize the employees who are working at godowns that they also have

Freedom to take initiative in regard to change in procedure.

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

Organization.

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

that company get more benefitted.

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BIBLIOGRAPHY

S.No. Title Author Publication

1 Financial Management Khan & Jain Tata McGraw Hill

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

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

4 Research Methodology C. R. Kothari Wishwa Prakashan

5 Personal Discussion with the executives & other staff memberof F&A Dept. of the Company.

6 Magazines & other Records of Company

7 www.osram.com

8 www.google.com

9 www.osramindia.com

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