First 2 Chapter Rohit.docx

1.1 INDUSTRY PROFILE In India, agriculture is the largest sector of economic activity. It provides food, raw materials and above all, the employment to a very large proportion of population. The national output depends on the output in agriculture, as it is one of the most dominating sectors in India. For the same reason, it has to provide the capital required for its own development and make available surplus for national economic development. At the same time, the exports of primary produce earn valuable foreign exchange which can be used to import capital goods for the development of industry and infrastructure. Because of all these reasons, an improved and efficient agriculture is a dire necessity in our economy. The vital role of agriculture arises out of the position the agrarian sector occupies in the overall economy of the country. 80 percent per cent of the population resides in the rural areas and 72 per cent of the work force depends on agriculture for their livelihood1. Agriculture is the back-bone of the Indian economy, and hence, the very existence of economic activities of entire people in the country is dependent on the state and health of its agriculture sector. Since last 30 years, the fertilizer industry in India has grown tremendously. The Government is keen to see that fertilizer reaches the farmers in the distant and hilly areas. This is the reason why it has been decided to decontrol the prices, distribution and movement of phosphatic and potassic fertilizers. Some steps are implemented to assure an increase in the supply of nonchemical fertilizers at reasonable prices. In India, there are 53 fertilizer quality control laboratories. Since bio-fertilizers are regarded as an effective, cheap and renewable supplement to chemical fertilizers, the Government is implementing a National Project on Development and Use of Biofertilizers. This scheme covers one national and six regional centers for organizing training, demonstrating programs and quality testing of bio-fertilizers. It was a challenging decision of the Government to take Bombay High gas through a1, 700-km pipeline to feed fertilizer plants located in the consumption centers of North India. However, the major policy which has ensured the growth of the fertilizer industry is the push on accelerating fertilizer consumption by fixing, on the one hand, low and similar price for fertilizers, and on the other hand providing the manufacturers ample compensation through the retention price and subsidy scheme. Due to such corrective steps, the fertilizer nutrient demand has gone up from 0.29 million tons in 1960-61 to 13.9 million tons at the end of 1995-96, compared to 12.15MT during 1992-93

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1.2 COMPANY PROFILE

Indian economy is an agriculturist economy. Agriculture production plays a very important role in the prosperity of the country. As the limited and the production is increasing at a tremendous rate, it is very necessary to increase production and only way to increase the production is to do intensive cultivation with the use of chemical fertilizers. The development of the fertilizer industry is of great importance to our National economy as; the primary occupation of 70% of the Countrymen is agriculture. And for a good yield, Fertilizer play, an important role. The increase in the Fertilizer industry shall lead to the development of agriculture which will further lead to rise in per capital income of the people due to increased yield and high quality. The efficiency of this industry would help the country to earn more of foreign exchange by exporting more and high quality of grains and other agricultural products. Fertilizer industry in our country has expanded significance to fulfill Nation’s hopes and aspirations for self-efficiency in food grains by trotting path of planned industrialization. Govt. of India has directed conscious efforts since the early 50’s to the present level that today Indian fertilizer industry meets country’s major requirements of plant nutrients and contributes remarkably in increasing agriculture yields manifold. The fertilizer industry has played a key role in rushing an era of plenty of food grains by translating into realty “Green Revolution” in the country from an utterly unsatisfactory situation prevailing on the food grains font India continues to be the third largest producer and consumer of in the world.

National Fertilizers Limited (N.F.L) was registered on 23.08.1974 with an authorized capital of 500 crores. NFL set up two fertilizer plant in Bathinda (Punjab) and Panipat (Haryana), NFL has emerged as an industrial giant in the fertilizer sector. Over the years company has expanded into a multi unit company with four manufacturing units with varied technology. Three of these units are strategically located in the high consumption areas of Punjab & Haryana. The company has an installed capacity of 35.49 lack MT of Nitrogenous fertilizers. The plants at Nangal, Bathinda and Panipat are based on partial oxidation of fuel oil/high petroleum stock, where as Vijaipur unit is based on natural gas as feedstock/ raw material. All the plants are running at more than rated capacities. The company is indulged in manufacturing chemicals & bio-products as well as to 2

provide the allied services. NFL schedule-A & Mini Ratna category-1 Company, is a market leader in the fertilizer industry in India with 16.5% share in Urea production during 2006-07.The Company has an installed capacity of 35.49 lakhs MT nitrogenous fertilizers and has recorded an annual sales turnover of Rs. 4172 crores during 2007-08.

LOCATION OF NFL PLANTS

ORGANISATIONAL STRUCTURE AT NFL NANGAL UNIT: -

GM I/C is head of the Nangal unit. He controls all the deptt. Of the organization at Nangal for example production, Mechanical, Electrical, Instrumentation, Civil, Personnel and Administration, Materials, Finance and Marketing all are under him. Manager of the respective departments assists him. The GM through his Assisting Managers implements all 3

policy matters laid down by head office. The outlay of the structure at Nangal Unit can be show as: GM I/C

Chief Manager

GM

Finance

HR

Senior Manager

Chief Manager

F&A

P&A

Chief Manager Mat. & DGM Mktg.

GM (O&M)

Dy. Mgr.(Mkt) Manager (Mat. / Tptn) _

DGM (MCI) (ELECT) (TS) (PROD)

Mgr/Dy/Asst. Manager

Staff

Senior Mgr Dy/Asst. Manager

Mgr/Dy/Asst. Manager

Staff

Staff

Chief Mgr. Dy/Asst. Manager

Staff

National Fertilizers Limited (A govt. of India undertaking) was incorporated on 23rd of August, 1974 for setting up two fertilizers plant, one at Bathinda in Punjab and another at Panipat in Haryana based on feed stocks/LSHS as main input. On reorganization of fertilizer corporation of India the Nangal expansion project of FCI was transferred to NFL on 1stApril 1978. In August, 1999 NFL has completed “Silver jubilee” towards services to the national in increasing agriculture production.

NEW ADDITIONS: -

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In June, 1984 NFL took up the implementation of gas based ammonia-urea fertilizer project on Hazira-jagdishpur gas pipeline at Vijaipur in Guna District of Madhya Pradesh with an approved cost of Rs. 587 crore. The plant was commissioned well within the time schedule as also below approved project cost. The project received the first prize for “excellence in project management” from Ministry of program Implementation, GOI in the year 1989. In view of NFL expertise in project implementation

and plant operation GOI in the year

1993 approved the expansion of Vijaipur plant for doubling its production capacity from 7.26 lakh tones to 14.52 lakh tones of urea per annum. Commercial production from Vijaipur expansion unit was declared w.e.f. 31st March 1997. This enhanced the company’s installed capacity from 10.36 lakh tones to 13.70 lakh tones of nitrogen.

FUTURE EXPANSION: To sustain and enhance the growth, NFL has revamped its urea plant at Nangal for annual installed capacity from 3.30 lakh tonnes to 4.78 tonnes of urea. Significant feature of this project would be optimum utilization of ammonia available within the plant beside improvement in product quality.

HUMAN RESOURCES Company recognizes employees as its most valuable assets. The high level of performance of the company lies on the contribution and dedication of the employees. In the changed scenario of high technology, the company has been continuously following the rightsizing and putting the available manpower to the best advantage of the organization. Voluntary retirement scheme was introduced during the year 2002-03. The manpower of the company has come down tom 5003 as on 30-6-2008 as compared with 5751 as on 31-3-2002. With the retirement of 748 employees the company has able to achieve reduction of 13% in the manpower NFL over the years has developed a team of dedicated professionals in the areas of production, maintenance and project management, safety and environment control. These professionals are sought after in the industry both in India and abroad for their specialized services.

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HISTORICAL GROWTH OF THE COMPANY

NFL, a Schedule A and Mini Ratna Company, is the second largest producer of Nitrogenous Fertilizers in the country with 16.5% share in the Urea production during 2006-2007.

NFL was incorporated on 23rd August, 1974 with two manufacturing Units at Bathinda and Panipat. Subsequently, on the reorganization of Fertilizer group of Companies in 1978, the Nangal Unit of Fertilizer Corporation of India came under the NFL fold. The Company expanded its installed capacity in 1984 by

NFL Corporate office: Noida

installing and commissioning of its Vijaipur gas based Plant in Madhya Pradesh.

FINANCIAL PERFORMANCE

NFL has been the market leader for manufacturing and marketing of Urea. The capacity utilization during the year 2007-2008 has been 101.1%.

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There are two types of plants in the Nangal Unit: Unit Plants: Water Treatment Plant NMP (Nangal Modernization Plant) Ammonia I 8

Nitric Acid Plant CAN Plant Bagging Plant

Expansion Plant Gradual reduction in the power supply to the fertilizer plant badly effects the production, as also augment the fertilizer production. The Govt. of India decided to establish new fertilizer plant, which came to be known as Nangal expansion project with an additional Nitrogen capacity of 152000 tonnes by using fuel oil as a feed stock. This plant not only increased production capacity from 232000 tonnes of nitrogen per annum, but also reduced the dependence on bulk supply of electric power. I. Steam Generation Plant 2. Ammonia-11

SWOT ANALYSIS

STRENGTHS

High capacity to produce. Percentage of profits in industrial products is very high. The company with an excellent track record of high profits. The NFL plants are located in virgin market for some of the industrial products. An easy starter more that 25 years experience in the fertilizer industries. Highly situated amidst high fertilizer consumption areas in the state of Punjab, Haryana and Madhya Pradesh. Lower capital cost- plants at Bathinda, Panipat and Nangal. Fully depreciated Vijaypur plant with an investment of Rs. 533 crores and vijaypur expansion plant with an investment of Rs. 1071 crores against the present glass root plant cost of about Rs. 1500 crores.

WEAKNESSES

Large equity base.

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Old and energy intensive fuel oil based Nangal, Panipat and Bathinda requiring high maintenance. High cost of production in fuel oil based plants. High investments for revamp/replacement and change over of feedstock from fuel oil/ LSHS to LNG. Single nutrient product base. Highly centralized system. Lack of sufficient promotional and publicity activities. Requirement is seasonal.

OPPORTUNITIES Growth in fertilizer consumption in the eastern market of the country. Marketing of neem coated urea of large scale. Marketing of agriculture inputs/services under one roof. Marketing of other fertilizer like DAP, MOP, SSP to harness existing imbalance in nutrients base and to move towards the NPK ratio of 4:2:1 Marketing of seeds and pesticides. Marketing of specialized services and association in joint venture in India/abroad. Growth in the production of Bio-fertilizers.

THREATS Decline in the consumption of nitrogenous fertilizers in predominant market areas. Energy intensive i.e. fuel oil based could face closure due to new policy on fertilizer unless technology modifications are implemented. Dismantling of distribution system. Availability of cheaper improved fertilizers. Increasing price of inputs i.e. fuel oil/LSHS/Naphtha/gas in India. Requirement of large investments for modernization of fuel oil/LSHS based plants.

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1.3INTRODUCTION OF TOPIC TRAINING “The purpose of training is to tighten up the slack, toughen the body, and polish the spirit.” Training is a continuous and never ending process utilizing a systematic and organized procedure by which skills, knowledge and competency level is enhances. It’s imported for both attitudinal and functional skills. Training is the systematic development of the attitude and skill behavior pattern required by an individual in order to perform adequately a given task. It is also the systematic modification of behavior through learning which occurs as a result of education instruction development and planned experiences. Training is designed to change the behavior of the employee in the work place in order to stimulate efficiency and higher performance standards (Oliseh, 2005:112). The most important resources of an organization are its human resources (the people) who supply the organization with their works, talents creatively and drive. Without competent people at the managerial as well as the operation level, the organization may end up pursuing in appropriate goals. Once the goals have been set for successful and essential ingredients will then come in and the difference between success and failure of an organization is the human element. An industrialist once said "take away all the factories trade, avenues of transportation and in four years, I will have re-established myself". Thus an organization is not merely the factories, trade, transportation, money or other physical and financial resources, but it is the people or human resources who are linked together in a formal structure and guided by managerial leadership. The stand of this industrialist was compliments with the thinking of "Rensis Likert" how rightly said that "all activities of any enterprise are stated and determined by the persons who make up that organization, plants, offices, computers and all other automated equipment that modern firms use are unproductive except for human effort and direction. However, it is in realization of the importance of human resources that most of the big organizations today create a Separate Human Resources Department in order to train, educate and improve the skills of the executives so that productivity in organization is considerably enhanced.

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Conclusively, Odiorne and Rummler (1988:3) posit that training and development aims squarely at producing behavior in its members. Obviously, it isn't training alone which produces the behavior, for the social conditions at and the organizational culture act to produce patterns of behavior in the organization's members. It is the organization, its objectives, markets, management style, and a host of other things which produce the demand for training. Changes technology, such as the introduction of the computer, changes in organizational size and arrangements, and the demands of the society around us all forces changes in behavior to be produced. Fortunately, human beings are capable of changing their behavior if they have a reason to do so.

MODES OF TRAINING INDUCTION PROGRAMME - Induction programme is designed before bow entrants or employees. It consists of lecture on the various topics by IR and other officers of relating to departments of new entrants with industrial culture and work practices. This helps the new entrants to know about organization as well as building healthy interpersonal relationships. This is there should for new employees and they get to know about various departments, management, their superiors and subordinates and the norms that prevail in the organization. CLASSROOM TRAINING - The trainees are placed on their actual job and positions where they work under the supervision of superiors or trainers. Besides on the job training supervision of room sessions relating to the functional areas are conducted. These serious enable the trainer to know about the work norms, work practices and methods along with the work culture.The main aim of on the job training is to impart knowledge to adjust them to new environment. The performance of trainees is assessed regularly and observation is made about their performances.

ATTITUDINAL TRAINING PROGRAM - All new employees have different backgrounds after joining the organization, they feel some hesitation & face difficulties in adjusting themselves according to the demands of their job & organization to help new entrants as well as the existing employees in moulding their attitude, attitudinal & behavioural training programs are organized. It enables employees to develop

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commitment towards organization, self disciplined. Approach, better interpersonal relations, general awareness about organization, self disciplined code of conduct etc. Attitudinal training program is conducted in which efforts are made to ensure that all employees are given exposure to such training at least once a year. The Senior Officers of various departments deliver lecture on various topics to encourage & motivate trainees to adjust themselves in organization. FUNCTIONAL TRAINING PROGRAM - This is to import specifics skills and knowledge and to develop certain personality as well as mental attitudinal aspects. These have been designed to help the trainee to improve work output, time management, decision making skills working techniques et. These programs help to generate awareness about quality of work output expected by them. Trainees are given chance to improve their performance proper invitation is given trainees for such programs Officer and Staff have less functional training but when some New Technology is introduced it becomes necessary. SPECIAL TRAINING - Various officers and Staff members are also imparted special training during special training program. It covers following subjects. Discipline Traits of an Ideal Officer Improvement in Work Output AUDIO VISUAL AIDS - Training aids like T.V., V.C.R., Trainings films, overhead projectors and black boards are used to make training programs more effective. Video Films prepare or organization is also shown. Training not only leads to improvement in performance but it also leads to the quality of manpower in organization proper reports and records should be maintained as so much of overhead is paid towards training for this following two steps are followed in INTERNATIONAL TRACTOR’S LIMITED. Attendance records of participants for various training programs are kept. PLanning for next month’s programs or calendars are circulated and superiors make nominations. The final list of trainees is also recorded.

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TRAINING Training is concerned with imparting

developing specific skills for a particular

purpose. Training is the act of increasing the skills of an employees for doing a particular job. Training is the process of learning a sequence of programmed behaviour. In

earlier

practice,

training

programme

focused

more

on

preparation

for

improved performance in particular job. Most of the trainees used to be from operative levels like mechanics, machines operators and other kinds of skilled workers. When the problems of supervision increased, the step were taken to train supervisors for better supervision. DEVELOPMENT Management development is all those activities and programme when recognized and controlled have substantial influence in changing the capacity of the individual to perform his assignment better and in going so all likely to increase his potential for future assignments. Thus, management development is a combination of various training programme, though some

kind

competency

of

training

is

necessary,

it

is

the

overall

development

of

the

of managerial personal in the light of the present requirement as well as the

future requirement. Development an activity designed to improve the performance of existing managers and to provide for a planned growth of managers to meet future organizational requirements is management development. Management development is based on following on assumptions. 1.Management development is a continuous process. It is not one shot programme but continues though out the career of a manager. 2. Management development is any kind of learning, is based on the assumption that there, always existing a gape between an individual’s performance and his potential for the performance. 3. Management development seldom takes place in completely peaceful and relaxed atmosphere. 14

4. Management development requires clear setting of goals. 5. Management development required conducive environment.

Training Need Identification for a company Introduction Training need identification is a tool utilized to identify what educational courses or activities should be provided to employees to improve their work productivity. Here the focus should be placed on needs as opposed to desires of the employees for a constructive outcome. In order to emphasize the importance of training need identification we can focus on the following areas: 1.To pinpoint if training will make a difference in productivity and the bottom line. 2.To decide what specific training each employee needs and what will improve his or her job performance. 3.To differentiate between the need for training and organizational issues and bring about a match between individual aspirations and organizational goals. Identification of training needs (ITN), if done properly, provides the basis on which all other training activities can be considered. Also requiring careful thought and analysis, it is a process that needs to be carried out with sensitivity as people's learning is important to them, and the reputation of the organization is also at stake. Identification of training needs is important from both the organisational point of view as well as from an individual's point of view. From an organisation's point of view it is important because an organisation has objectives that it wants to achieve for the benefit of all stakeholders or members, including owners, employees, customers, suppliers, and neighbours. These objectives can be achieved only through harnessing the abilities of its people, releasing potential and maximising opportunities for development.

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TRAINING PROCESs

1. Need of training. 2. Determine type of training. 3. Identifying training programmes. 4. Identifying training goals and objectives. 5. Implementing training process. 6. Evaluating training process.

DEVELOPMENT PROCESS Three stages in development process: STAGE 1 1. Competitive Environment. 2. Organisational Strategy. 3. Organisational Objectives. STAGE 2 1. Competency Mapping. 2. Identifying competency. 3. Carrier Planning. STAGE 3 1. Training need assessment. 2. Annual training plan. 3. Conduct of training. 4. Review of training activity.

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STAGE 4 1. Internal and external training programme. 2. Customize training programme.

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