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An organizational study report of Rubco Huat Woods Pvt Ltd.

INTRODUCTION Kerala state Rubber Co-operative Ltd. (Rubco) has, in a short span, redefined the way

the co-operative sector functions and set the pace for the co-operative

movement in Kerala today. Rubco was set up in the year 1997 with the objective of effectively utilizing the abundant rubber resources of kerala. Today, from a single unit company, Rubco has grown into a Rs.280 crore conglomerate with well-diversified operations and a market presence extending beyond the boundaries of Kerala. Rubco manufactures and markets a variety of products from footwear

to

furniture,

from mattresses to virgin coconut oil. Rubco has also entered into technological alliances with world leaders in the respective fields, sourcing from them the latest in technology. Substantial investments in modern manufacturing facilities, coupled with well – organized marketing activities, have seen Rubco’s products earn a reputation for quality, as also significant market shares. Led by a professional management team and ably supported by a committed workforce, Rubco is now poised to enter a high growth phase, with several new initiatives that will take the Group on a path of expansion and diversification. Rubco is started for promote the rubber plantation in kerala. Rubber plantation in India is large. Our country is the one of the largest national rubber producers in the world, now it occupies the fourth most position in the production of natural rubber. Thailand, Indonesia and Malaysia occupy the first, second and third position respectively, accounting for more than 9% of the global output. India has rank 5th in terms of acre age, 4th in terms of production and first in terms of productivity in the world. The rubber plantation sector in the country is dominated by small holdings, almost 10 lakhs in number, 88% of the area and production come from small holdings. Rubber plantation provides raw material for the product manufacturing industry. Rubber cultivation in India has been traditional confined to the hinder lands of south west cost mainly the kerala state and Kanyakumari district of Tamilnadu. The nontraditional regions cultivating runner includes costal Karnataka, Goa, and Konkan region of Maharashtra, costal Andrapradesh, Orissa , the North eastern states and Andaman niccobar islands.

An organizational study report of Rubco Huat Woods Pvt Ltd. The rubber plantation employees about 4 lakh persons and a good number of them are women. Being tree crops it has tremendous potential in eco-restoration. Rubber plantations also provide a variety if auxiliary product like honey, seed oil, rubber wood and scope for rearing honey bees. Commercial cultivation of rubber in India was started in 1902. The state of kerala adjoins Kanyakumari district of Tamilnadu and traditional and major rubber growing area of the country. It is also grows in Tripura, Assam, Meghalaya, Mizoram, Manipura and Goa over 5.71 lakhs hector of area spread; over 15 states and one of the union territory of the country is under rubber plantation. The rubber plantation sector in India is dominated by small holdings almost 10 lakh in number, covering 88% of total area; about 71 lakh of people derive their employment from the plantation sector directly or indirectly. The main purpose of rubber plantation is the production of latex which is the main raw material for all rubber product manufacturing industries. In India, 72.2% f the product is processed as ribbed smoked sheet (RSS). Block rubber, concentrated latex, crepe rubber and other account for 9.8%, 10.5% and 7.77% respectively. A rubber tree with a useful economic life span of 23-30 years will yield high production latex. In this background, the Kerala state rubber co- operative Ltd., otherwise known as rubco, purpose to launch a comprehensive scheme to interact with the farmer directly with the processing and other support facilities so that small and marginal farmers can avoid the cumbersome process of sheet making in their small holding. Since small holdings are only between 0.5 to 2 Ha, generally, and do not have infrastructure facilities, it is very difficult for them to make quality sheets. In the international market the quality of the sheet are very important. For this purpose rubco also started a marketing plan with the farmers for making the sheets with international quality.

An organizational study report of Rubco Huat Woods Pvt Ltd.

OBJECTIVE OF THE STUDY To study the organization as a system and it’s various functional areas. To have the practical knowledge of the application of management theories. To have real life knowledge of an organization through various departments. To understand the strategies adopt to confront the challenges faced by the company. To have a clear picture about the company.

LIMITATIONS OF THE STUDY Personal bias and prejudice of the respondents could have affected the result of the study This study is academic effort so is limited by time cost and coverage This study is subjected to the common limitation of secondary data. SOURCES OF DATA COLLECTION PRIMARY DATA COLLECTION

It refers to the data that was collected first hand directly from the sources. By interviewing managers. Discussion with workers. Interviewing staffs.

SECONDARY DATA COLLECTION

The data previously collected by others for some other purpose. It includes, Company booklets. Organizational websites Annual reports and journals.

An organizational study report of Rubco Huat Woods Pvt Ltd.

INDUSTRY PROFILE RUBBER WOOD INDUSTRY RUBBER PLANTATION SECTOR IN INDIA The rubber industry is one of the key sectors of the Indian economy. Commercial cultivation of rubber in India started in 1902.India is one of the largest rubber producers in the world and occupies the 4th position in the production of natural rubber. Thailand, Indonesia and Malaysia occupy the 1st, 2nd and 3rd positions respectively, accounting for more than 9% of the global output. India ranks 5th in terms of acreage, 4th in terms of production and 1st I terms of productivity. The rubber plantation sector in our country is dominated by small holdings(less than 0.5 hectares) almost 10 lakh in number, covering 88%of the total area; and about 71 lakh of people derive their employment from rubber plantation sector either directly or indirectly. Rubber cultivation in India has been traditionally confined to hinder lands of south west coast; mainly the state of Kerala and Kanyakumari district of Tamilnadu. The non-traditional regions cultivating rubber include coastal Karnataka, Goa, Konkan region of Maharashtra, coastal Andhra Pradesh, Orissa, Tripura, Assam, Meghalaya, Mizoram, Manipur and Andaman Nicobar islands. Kerala contributes 90% of India’s total production of natural rubber; Also Kerala and Tamil Nadu together occupy 86% of the growing area of natural rubber.

IMPORTANT CHARACTERISTICS OF THE INDIAN RUBBER INDUSTRY The following are the special characteristics of the rubber industry in the country, which make India a little different from many of the other natural rubber producing countries; India is a major producer and consumer of natural rubber The rubber products manufacturing industry in India had been mostly inward oriented, catering to the domestic market In recent year India has entered the global market exporting both raw natural rubber as well as rubber products

An organizational study report of Rubco Huat Woods Pvt Ltd. With its large population base India is emerging as a large market for rubber products and with the opening up of the economy, import of rubber products has also been increasing in recent years The rubber product mix in India is based mostly on the dry forms of rubber dictated by the requirement of the domestic market

ROLE OF INDUSTRY IN THE ECONOMY Due to various factors like extensive plantations good availability of raw materials availability of economical and technically skilled man power and a vast domestic market, India is all set to make a mark in the global rubber industry. India is ideally poised to supplement and compliment overseas manufacturers through joint collaborations and technical exchange to contribute substantially to the world rubber trade. The main purpose of rubber plantations is the production of latex, which is major raw material for all the rubber products manufacturing industries. In India, 72.2% of the production is processed as ribbed smoked sheets (RSS).block rubber, concentrated latex, crepe rubber and others constitute 9.8%, 10.5%and 7.77% respectively. a rubber tree with a useful economic life span of 23 to 30 years will yield high amount of latex . Also being a tree crop it has tremendous potentials for eco restoration. Rubber plantation also provides a variety of auxiliary products like honey seed oil rubber wood and scope for rearing honey bees Established in 1921, the Indian rubber goods manufactured industry has grown to the 4th largest producers and consumers of natural rubber. It is also the 4th largest consumer of natural rubber and synthetic rubber. Put together, India has about 5000 rubber goods manufacturing units including large and small scale unit’s .the range of rubber wood product manufactured in India caters to all most every sectors including the common people. it also helps a social cause through condoms. In tandem with the manufacturing sectors growth, the industry is posing to deliver high growth rates in the domestic and export sectors. Development of rubber wood industry in our base particularly in the automobile industry and the availability of competitive labor the country offers great opportunities for rubber products manufactures with country will help to generate employment strengthen national economy make rubber cultivation sustainable and preserve the environment. considering the large

An organizational study report of Rubco Huat Woods Pvt Ltd. population and the large manufacturing further investments in r&d and infrastructure ,the country is poised to become a leader in rubber product manufacture in the years a head

An organizational study report of Rubco Huat Woods Pvt Ltd.

COMPANY PROFILE OWNERSHIP PATTERN Govt of Kerala (GOK) along with Indian rubber board and some district and primary co-operative banks in kerala all the promoters of RUBCO; Govt of kerala holds the majority of the shares. The top ten share holders are GOK, Rubber board, Kottayam district co-operative bank, Palakkad district co-operative bank, Eranakulam district co-operative bank, Thrissur district co-operative bank, Thiruvananthapuram district co-operative bank, Kollam district co-operative bank.

HISTORY AND GROWTH Kerala state rubber co-operative limited, popularly known as RUBCO is a Rs. 280 crore group with a strong presence in the rubber based industrial segment. Rubco was incepted with prime objective of effectively utilizing the abundant rubber resoures of Kerala. In literally means the kerala state rubber co-operative limited will become the back bone of the rubber cultivator. In there slogan it’s self they mentioned that “RUBCO means RUBBER and RUBBER means RUBCO” In short span rubco has successfully introduced a wide range of fast moving rubber based product. Today rubco group have interest in rubber foot wear, casual shoes, cycle tyre and tubes, two and three wheeler tyre, rubberized coir mattress, processed rubber wood furniture etc. Rubco was set up in the year 1997, RUBCO has entered in to technical alliance with world leader in the respective field, sourcing from them state-of art technology. substantial investment in modern manufacturing facilities, coupled with well organized marketing activities ,has seen RUBCO’s products earn a reputation for quality and significant market shares. RUBCO is the largest exporter of natural rubber in the country today. Even in the domestic market, rubco is the major supplier of natural rubber to all leading tyre companies in India RUBCO is also Govt intervention agency towards market stabilization and has been serving the farming community.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Directly and indirectly to get responsible price, arresting drastic fall in price during peak production period, rubco policy in natural rubber has been a harmonious blend of social obligation and commercial practicability led by a professional management team and ably supported by a committed work force. RUBCO is now poised enter a high growth phase, with new several initiatives that will take the group on a path of expansion and diversification. Rubber holds immense potential for wide variety of commercial use which is yet to be fully tapped into. By realizing this potential, Rubco hopes to create opportunities and bring industrial progress to a land that accounts for 92% of country’s natural rubber production. In the process rubco also aims to achieve its vision of turning in to multi-faced, globally competitive organization, excelling in its every sphere of activity. RHW Ltd is located at chonadam near telicherry, kannur district kerala. RHW was inaugurating in 6 may 2000 and started its commercial production in January 2001.

LEGAL FRAME WORK OF THE ORGANIZATION RUBCO is governed by the byelaw which provides that RUBCO’s area of operation will cover the entire state of Kerala, however there is no restriction on the area of operation as far as the sales and marketing of the products dealt in by RUBCO is concerned. As per by law, the main social objects inter alia include to further rubber cultivation in the state, to accelerate the industrial growth and strengthen the co operate movement. RUBCO is governed by the byelaw which provides that RUBCO’s area of operation will cover the entire state of kerala, however there is no restriction on the area of operation as far as the sales and marketing of the products dealt in by RUBCO is concerned. As per by law, the main social objects inter alia include to further rubber cultivation in the state, to accelerate the industrial growth and strengthen the co operate movement.

An organizational study report of Rubco Huat Woods Pvt Ltd.

CAPITAL Authorized share capital of RUBCO as per the byelaw is Rs. 3000 lacks made up of

2500

A class share of Rs1000 each

Rs 2500 lakh

5600

B class share of Rs 25000 each

1400 lakh

26000

C class share of Rs 100000 each

26000 lakh

1000000

D class share of Rs 10 each

100 lakh

Total

3000 lakh

BOARD OF DIRECTORS The administration and management of the company rests in the hands of board of directors consisting of 15 members as followers. 1. nine directors elected by A class share holders among themselves 2. two directors elected by B class share holders 3. three ex-office directors by registrar of co-operative societies, Kerala The term of office directors shall be five years from the date of assumption of the office. The co-operative cannot receipt deposit or loans in excess of 50 times the paid a share capital plus reserve fund of co-operative societies. This limit is not applicable to funds received from the central and state Govt. or other agencies like NCDC, Rubber Board etc.

An organizational study report of Rubco Huat Woods Pvt Ltd.

PRODUCT PROFILE

PRODUCTS The rub wood furniture range introduced by RUBCO HAUT comprises of elegantly designed, modern furniture fashioned out of eco friendly rubber wood. Manufactured in technical and financial collaboration with M/s long haut group Berhand of Malaysia. The following are the various ranges of products offered by the RUBCO HAUT

RUBCO TIMBER PANNEL RUBCO rubber wood pre-finished panel open up unlimited possibilities in design and processing on par with the highest standards and unequal in elegant. RUBCO timber panels are produced by the sophisticated process of finger joining and edge gluing, using resigns of polymers, which are either white or translucent excellent finish or durability is guaranteed. They also conform to international standards. These solid timber panels of RUBCO are easy to saw, machine, drill, bore or stain sanded to 240 grit, they offer smooth finish and excellent holding capacity, making it the ideal user-friendly choice of furniture manufactures and carpenters. This proven concepts which is very popular among builders and architects in western countries, offer the perfect solutions to the problems routinely encountered in handling various cross sections of timber scantlings. RUBCO timber panels are eco friendly ensure lower wastage of material and cut down on labor, time and over all cost. Rubco timber panel come in size from 15mm thickness upward with maximum cross section size of 5200mm x 5200mm rubco timber panels can be applied for the following uses. Doors and window frames Office furniture and portions Modular tables and peripherals for computers Designer wardrobes Kitchen cabinet

An organizational study report of Rubco Huat Woods Pvt Ltd.

RUBCO HUT WOOD FURNITURES The colonial furniture collection from Rubco’s are and ideal way to add splendor and comfort homes. Than RUBCO’s range of finished furniture comes in varied shades coated with several layers lacquers. The furniture ranges offered by RUBCO HAUT WOODS are: dining table with chair computer table TV stands sofa sets and divan cot rocker chains cot

DINING TABLE WITH CHAIR RUBCO’s range of dining table is available in oval, round, squires with matching chairs forming an eye catching combination to grace the dining room. It is available in range of colures like honey, northern rosewood and natural and so on.

COMPUTER TABLE The computer table offered by rubco hut wood thoughtfully designed to provide the room for all peripheral accessories and offer unmatched convenience. It is also available in different colors like honey, northern rosewoods, natural, west antique pine and pigment red.

TV STAND The TV stands are simply designed but they do not nearly serve their purpose by stand out as elegant pieces of home décor as well.

SOFA SET, DIVAN COTS, ROCKER CHAIN The sofa set, divan cots, rocker chain are exquisite design and range of finish helps to create beautiful living space. It is also available in range of colours such as honey, northern rosewoods, natural, west antique, pine, and pigment red.

COT

An organizational study report of Rubco Huat Woods Pvt Ltd.

RUBCO HAUT manufactures both single and double cot and elegant wardrobes that make bedrooms all most beautiful and comfortable. It is also available in a range of colors honey, northern rosewoods, natural, west antique pine and pigment red.

MARKETS Market of the rubco is divided in to two parts they are; Domestic market and foreign market. Domestic market is spread all over the kearla. While considering foreign market, company exports products to UK, USA, JAPAN, and GULF COUNTRIES.

ISO- CERTIFICATION ISO 2000 ISO 2001 RUBCO gives more important for the quality f products which can ensure customer satisfaction The quality policy of rubco is to give enhanced satisfaction to customers through manufacture and supply of rubber wood products at high quality and as per the equipments of customer by the use of modern manufacturing facilities.

COMPETITORS RUBCO is enjoying monopoly in the market. They has no major competitors in market.

FUTURE EXPANSION RUBCO is in the process of setting up a project for the manufacture of tyre and tubes for two/ three wheelers, passengers, cars etc. The project is located in the proposed industrial growth center being developed at valiyavelicham, about 35 km from kannur city. RUBCO invested Rs 96 million in the casual shoes project. Its location is in Thalassery. The new plant has a capacity of 1.55 million per annum.

An organizational study report of Rubco Huat Woods Pvt Ltd. Virgin coconut oil project is the next one. The project envisages establishment of 100 cooperate coconut processing unit in kerala, to start with, which will be increased to 200 units subsequently for the production of coconut oil directly from green coconut nuts with uot going through conventional copro or milk route. The process methodology is commonly known as direct micro expelling technology. Capacity of plant is 4000 liters per day and packing capacity is 40 kilo liters of virgin coconut Oil per day.

ANCILLARY PRODUCTS: beverage from coconut water activated carbon Confectionary products.

RUBCO has a thread rubber project also the first product is conventional thread. The plant will have a capacity of 1200 tons per annum. Second product is precured thread. The plant will have capacity of 1200 tons per annum

An organizational study report of Rubco Huat Woods Pvt Ltd.

VISION AND MISSION

VISION To become a global leader in the production of natural rubber and innovative production and development.

MISSION Right information to all customers at all the time.

An organizational study report of Rubco Huat Woods Pvt Ltd.

ORGANIZATION CHART

Board of directors Managing directors General manager

Purchase Officer

Store Keeper

Selection in charge QC

Assistant purchase officer

Chief production manager

Time Officer

Selection in charge furniture

Supervisors

Account Officer

Management represent

Account clerk

Selection in charge saw mill

Supervisors

Maintain manager

Sales & shipping manager

Supervisors Assistant sales and shipping manager

Workers

Workers

Workers

An organizational study report of Rubco Huat Woods Pvt Ltd.

DEPARTMENTAL STUDY

PRODUCTION DEPARTMENT

INTRODUCTION RUBCO RUB WOOD division has progressively recorded high productivity and profitability production department in equipped with efficient and qualified managers and supervisors.

FUNCTION The main function come under production department are 1 production planning 2 furniture production 3 product development

PRODUCTION PLANNING It is done on the basis of specification or orders placed by Rubco SALES INTERNATIONAL LTD and based on domestic order placed by authorized distributor. The required quality and quantity is specified through production planning and production is done according to this planning quality is ensured by quality control department. production planning involves an organization of an overall manufacturing Operating system to produce a product. Objective of production planning is to provide a physical system together with a set of operating guideline of efficient conversion of raw material human skill and other input to finished product.

The production planning procedure are varies from company to company. Production planning may begin with product idea and a plan for the design of product and the entire production system to manufacturing of a modified version of existing product, using the existing facilities. The major factors determine production planning procedures are;

volume of the product

An organizational study report of Rubco Huat Woods Pvt Ltd. nature of production process nature of operation

FURNITURE PRODUCTION Boiler and saw mill The process begins from logyard. logyard is a place in which logs are unloading for the furniture production, Rubco furniture are making only by using rubber woods. If any defects are found any unloaded rubber wood, the logs will be send back. There are lots of procedures for checking the useful log. The quality department will check each and every log. The second step is to saw the log for the manufacturing of furniture. The logs cut in to particular length and width after that the log will check again for the usefulness. if any defect found it will not use further for manufacturing purpose. The pieces of wood have a particular order for arranging and keeping. it will keep at a certain quantity of level process continue and keeps the woods the prescribed manner. The next process is store the material in impregnation plant. The materials are processing inside the impregnation plant in to add extra strong and durability for woods. The replaced woods from the impregnation plant in keeping in KLIN DRYING room for reducing the water content in the processed wood. The HOT OIL is sprayed to the room from the boiler. It is used to heat the wood. A particular type of fan is using for maintaining the temperature level in all area of the room. The woods are keeping twelve days in the room. E. G. P (edge glued panel) There are different types of process in E G P. they are jump saw top and bottom plainer multiple rip saw sorting finger joining

An organizational study report of Rubco Huat Woods Pvt Ltd. molding

composing end cutting sanding finishing The wood panel boards are creating in this section by using wood pieces. The furniture manufacturing unit uses only these types of panels. There is no large size wood piece. Each and every log is cutting in to small pieces. There are lots of processes involved in this section.

Planning area It is area in which the wood processes are planning in to two sides. This is the first process in this section. Wood pieces are taken for joining purpose after keeping wood in klin drying room for particular period of time. The wood pieces will to having plain or smooth surfaces. So for the manufacturing purpose it must plain the surface of all wood pieces. Machine name: top and bottom plainer This area is also used for re work of defected material.

Multiple rip saw This process is also similar to planning but in the process the other two sides are planning. After this process the wood pieces will have smooth surface in all four sides. After top and bottom planning and multiple rip saw, a new colour or design is appearing on the surface of wood pieces. It may be plain surface, line surface or flower type.

Finger joining For the manufacturing of the furniture the woods must have a certain level of length and width. So it is important that the wood pieces must join together. So a special type of process for the joining the wood pieces is involved, it is called finger joining. Two machines are using together for this purpose. One is male part and other is female part. First machine cuts the edge of the wood in the teeth shape but the second one cut and attaches the glue to the edge. After that the wood pieces are passes horizontally through the machine and pieces are automatically joins. A particular length is fixing in the machine and it

An organizational study report of Rubco Huat Woods Pvt Ltd. automatically cut the joint woods in the same line. The minimum length we can adjust in the machine is 15×39 and maximum 45×78

Molding There are two types of machine used for molding purpose. 7 head molder and 5 head molder. This is used for the molding of two sides.

Composing This is an important in EGP. It is the process of joining the finger joint wood pieces in a panel format. In this process edge of the wood pieces will not cut. The finger joined wood pieces are keeping in the composing machine by using the glue in the rip side.

Cutting The length of the wood pieces may vary in small difference. So we have to cut the end of panels for getting correct shape.

Sanding The wood panels are again sanding by using special type of machine which will have 3 sanding paper inside. It gives a smooth and plain surface.

Finishing This is the last section of EGP .some defects or whole may appear in between the production process. One all the process are completed the defected wood panels are taking for finishing purpose. For removing the holes in the board wood powder mixing with glue and fill the gap.

Furniture The colonial furniture collections from Rubco’s are the ideal way to add splendor and comfort homes. Than Rubco’s range of finished furniture comes in varied shades coated with several layers lacquers. The furniture ranges offered by Rubco haut woods are: dining table with chair T V stand sofa set with divan cot

An organizational study report of Rubco Huat Woods Pvt Ltd. rocker chain cot There are different sections and machines in furniture departments are narrow and band saw auto copy shaping machine wide belt sander single head double head tenoner jump saw back knife lathe turning sander single spinning shaper double spinning shaper mortiser router

drilling spindle sander edge sander oscillating drum sander brush sander lathe sander multiple purpose drilling machine hydraulic multipurpose mortiser

ASSEMBLING It is the section in which the different furniture materials are joining together for making the furniture. in furniture section the woods are shaping, sanding, turning and drilling. These wood pieces are assembling in order to make the exact furniture. Packing work is also doing in assembling department.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of production department

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

JOIN PRODUCTION MANAGER

SHIFT ENGINEER

PRODUCTION SUPERVISOR

ASSISTANT PRODUCTION SUPERVISOR

WORKER

An organizational study report of Rubco Huat Woods Pvt Ltd.

MARKETING DEPARTMENT INTRODUCTION Marketing is the human activity directed at satisfying the need and wants through an exchange process. In Rubco the entire range of products is marketed by Rubco sales international limited. The RSIL formulates market strategies for both domestic and international markets. The marketing department is headed by marketing manager. He is assisted by junior sales officer in kerala and by area sales manager in outside kerala. The RSIL follows full cost pricing strategy to the product that is marked by them.

FUNCTIONS OF MARKETING DEPARTMENT Formulation of effective advertising strategies for winning the market. Conducting seminar/ exhibition For the purpose of launching new products to the market and also make the people aware of their existing products Conducting retailers meet for the purpose of maintaining cordial relationship between management and distributors. Conducting consumer survey for the purpose of collecting information from customers for the further product development and evaluation of existing position of product in the market. Formulations of sales strategies in order to achieve the target turn over. Orientation is given to dealer and distributors to make aware them about the quality of products.

CHANNELS OF DISTRIBUTION A channel of distribution is the path through which products move from the place of production to the place of ultimate consumption. The company distributes its products through dealers. The company has around 150 dealers throughout India .   

Rubco factory Dealers Customers

An organizational study report of Rubco Huat Woods Pvt Ltd.

MARKET SEGMENTATION A market consists of large number of buyers and they are widely scattered. They are different in their wants, purchasing power, buying attitude, buying practices etc…..therefore it is desirable to group the buyers on the basis of location, income , education, age, sex etc….so as to enhance the satisfaction of the customer and profit to the market. This grouping of buyers is called market segmentation. Rubco haut wood follows geographical segmentation .it is divided in it two.

Home segmentation It consist of state of kerala

Outside kerala segment It consists of all states in India other than kerala.

PROMOTIONAL TOOLS Once the product is manufactured, price fixed and distribution channels are selected, the next task is informing the prospective customer. The customers of rubco are informed through the following tools: Advertising Dealers meet Carpenters meets Discounts, offers, gift packs during festival season. Sales man gift scheme.

ADVERTISMENT AND PUBLICITY The major purpose of advertisement and publicity is to promote product effectively through providing information to customers. The advertisement methods followed by rubco are: Sales promotion Press media Visual/ electronic media Hoarding Exhibition

An organizational study report of Rubco Huat Woods Pvt Ltd. Laminated boards

BRANDING OF PRODUCTS Branding gives a name, sign, symbol, design or combination of so as all to distinguish the products from other similar product. The products produced in the company are sold under the brand name “Rubco furniture” and “Rub wood EGP board and beams Rubco home series”

TRANSPORTATION This is the physical movement of goods from one place to another. Transportation function of rubco is undertaken by sales and shipping division. The company usually uses the modes like train, road, and ship for the purpose of transportation.

PRICING POLICY Pricing policy provides the guidelines within which pricing strategy is formulated and implemented. Rubco follows cost based pricing policy. The price of the product is computed by adding certain percentage of profit to the cost of the product per unit.

DISCOUNTS The company provides 2% trade discount on colonial furniture and panel bards. If the per purchase value exceeds Rs 8 lakh then 10% discount is given.

MARKETING RESEARCH Marketing research is concerned with obtaining information regarding market.it is study of market its self. The marketing research is conducted by the company regarding changes in price, quality, design, and customer satisfaction level and after sales service etc

PACKING AND DISPATCHING Rubco haut only chairs are assembled and packed for selling, and items such as tables and cots etc are just finished and packed. The products are named with company name, brand name, brand mark and model number. Dispatching is done according to the order. The goods are covered with p form sheets and bubbles sheets and put it into card box for protection. The company mainly exports products to UK, USA, JAPAN and GULF COUNTRIES.

An organizational study report of Rubco Huat Woods Pvt Ltd.

PRODUCT PACKAGE Rubco elegance Rubco welcome Rubco home nest Rubco captain Rubco marshal Rubco honey comb

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of marketing department MD

GM

MARKETING MANAGER RCM

MARKETING MANAGER FPA

MARKETING MANAGER FCT

Asst. MARKETING MANAGER

KERALA

OUT SIDE KERALA

JUNIOR SALES OFFICER

AREA SALES MANAGER

SALES EXICUTIVE

SALES EXICUTIVE

An organizational study report of Rubco Huat Woods Pvt Ltd.

QUALITY CONTROL DEPARTMENT INTRODUCTION The Rubco industrial complex has a separate quality control section with computerized BHED meters, universal tensile, esters and compression set apparatus, flexor meters and abrasion testers etc. This section ensures the quality parameters of all incoming raw materials, in process material and finished goods. The company has a well established quality control division. The functions of quality control division. The function of quality control starts from the log yard and ends in the dispatching section, so it is very long process. Quality control is strictly adopted in the following process. Acceptance of logs Impregnation process Kiln drying Gluing In process line Finishing Packing and dispatching

QUALITY PARAMETERS Minimum girth should be 28 inch and length should be 4 feet Tapping mark should be very less Branches and humps should be avoided Dead knots and nails should be avoided Irregular shapes and fungal attacked woods should be avoided

QUALITY OBJECTIVES High capacity utilization Enhancing competence of employees High level of profitability Low level of rejection

An organizational study report of Rubco Huat Woods Pvt Ltd. High yield from input materials Low level of break down Least possible customer complaints QUALITY POLICY Rubco’s quality policy is “to give enhanced satisfaction to their customers through the manufacture and supply of rubber products by the use of modern manufacturing facilities. They voluntarily meet the entire product and process related regulatory requirements. The employees at Rubco are committed to continuously improve their performance in all sphere of activity”. INSPECTION The act of determining the conformance or non conformance of the expected performance is the function. Here, the manufacturer seeks to determine the acceptability of the product or part of it. The basis for the inspection is usually a certain specification, which is called an inspection standard. Comparing the quality of the product to the standard makes inspection. In rubco, the inspection standards of every product and process are predetermined based on these standards. Inspection is carried at all stage of production. Quality control department conduct three types of inspection for maintain quality of materials they are INCOMING INSPECTION It is conducted when the purchase department purchases the materials to the production. At the time of production the required quality of to each accepted or it is rejected. IN PROCESS INSPECTION The quality checking is done according to the production process the quality supervisor inspect entire product production. Then the material is passed of it is satisfied the required quality otherwise it is send file work. FINAL INSPECTION

An organizational study report of Rubco Huat Woods Pvt Ltd. After completion of production process the supervisor conducts its last inspection if the supervisor is satisfied on the quality of material produced, the materials are send to dispatch or otherwise they are given to re work.

The quality checking procedures in company are; Boiling water soak De Lamination test Cold water soak De Lamination test Dry salt retention test. Reagent test Moisture content test Concentration check.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of quality control department

Managing Director

General Manager

Quality supervisor

Skilled worker

Unskilled worker

An organizational study report of Rubco Huat Woods Pvt Ltd.

PERSONNEL AND ADMINISTRATION DEPARTMENT INTRODUCTION Rubco haut wood has a separate personnel department to perform personnel functions like manpower planning , recruitment, selection, training, performance appraisal, employee motivation, welfare, record keeping etc. the personnel and administrative officer in charge of personnel and administrative department. The personnel and administrative officer is assisted by time officer. Rubco is forward looking organization committed to identify train develop and sustain its human resource in such a manner as to integrate the individual career aspiration of its executive. Rubco has basically a fair, equitable and performanceoriented policy with respect to its human resources.

FUNCTIONS Conducting job analysis Planning labors needs and recruiting job candidates Selecting job candidates Conducting orientation and training programs for new employee Managing wages and salaries Providing incentives and benefits Appraising performance Communication with employees Training and developing managers Building employees commitment

RESPONSIBILITIES OF MANAGER He is responsible for manpower planning recruitment, selection, training, compensation package, performance appraisal, maintaining discipline. He is providing advice and guidance to the officers and staffs working in the unit under the control of GM in the matter connected with the performance appraisal, discipline, training etc.

An organizational study report of Rubco Huat Woods Pvt Ltd. He is responsible for obtaining necessary function for certain of posts, pay scale, and other required sanctions from managing director or chairman for filling up manpower requirements at time to time. He is responsible for proper administration of statutory and non statutory welfare programs in the company. He is responsible for preparation of wages salary bull and passing it to finance department for disbursement. He is responsible for identifying training needs of employees and arranges various training programs for employees.

MANPOWER DEVELOPMENT IN RUBCO HAUT The company has well established man power strength. There are 818 workers employed in different categories of work. The workers of the company are divided in to four categories they are;

a. Specialized workers They are carpenters; they concentrate on work like final sanding, assembling etc. the spray finish also come under this category. The specialist workers have a pay scale of Rs 350 per day.

b. Skilled workers They are those who have specialized in a particular job they are basically ITI and diploma holders. They have pay scale of 320 per day

c. Unskilled workers They are third category and include those who have undergone 6 months initial training in the company. They have a pay scale of Rs 250 per day

a. Learners Learners category includes the newly selected workers, they are actually under training for the first 6 months, then promoted to unskilled category based on their performance. They have pay scale of Rs 200 per day.

An organizational study report of Rubco Huat Woods Pvt Ltd.

RECRUITMENT AND SELECTION POLICY For the recruitment process, Rubco haut wood recruits the employees from both external and internal sources. Internal sources of recruitment of Rubco haut wood includes promotion transfer and some demotions External sources of Rubco haut wood mainly done by publishing the recruitments advertisement in daily news paper to some extent company also prefers employees recommendations. (If the candidate satisfies required quality) After the recruitment procedure, the next step is the screening of application based on the notification. In order to select the best candidate company conducts personal interview. Based on the qualification, experience, and performance of the candidate, the rank list is prepared and the best one is selected. Rules regarding recruitment and selection Any person below age of 18 is not appointed as the worker or leaner. All workers are selected only after verifying and clearing the data given in the application form. The resigned worker and dismissed workers will not be selected A person should not perform as a part time or full time employee in the other organization while he is a worker of the company. TRAINING POLICY Every employee has to undergo training. They have a probation period of one year in which first six months are treated as learners. Supervisors will give on the job training to them during that period. During probation period employees are closely watched. Any unruly behavior from their part will cause their further service in the company. In rubco training is provided to the workers under the ministry of safety training program. During the training period the trainees are given stipend.

An organizational study report of Rubco Huat Woods Pvt Ltd.

PERFORMANCE APPRISAL It is the process of evaluating the employee’s performance of a job in terms of requirements. It is considered as the most in dispensable tool for an organization, for the information it provide is highly useful in decision regarding various personal aspects such as promotions and merit increases performance measures also link information gathering and decision making process which provide a basis for judging the effectiveness of personnel sub division such as recruiting, selection, training, and compensation. Rubco huat woods are using grading method for performance appraisal. Supervisor appointed to evaluate the performance of workers. According to their performance, they are given grade as below; A grade B grade C grade

-

excellent good satisfactory

Following factors are taken into consideration for fixing grades: Attendance Responsibility Ability to grasp things Work performance Quality of output TIME OFFICE The main functions of time office are; To prepare shift schedule on monthly basis To prepare and display notice of various safety and other matters To oversee the conduct of staff and the workers, to ensure the general discipline etc To maintain out pass register fir proper recording duly sectioned out pass od employees To maintain an accident register To issue visitors pass as per company rules

An organizational study report of Rubco Huat Woods Pvt Ltd. Rubco haut woods make use of smart card for recording the time of arrival and departure of the employees.

THE SHIFT TIMINGS AT RUBCO HAUT WOOD: First shift

- 8.30 am to 5.00 pm

Second shift

- 5.00pm to 1.00 am

Third shift

- 1.00am to 8.30am

If there is any additional work, it is treated as over time and workers get double of the usual rate of pay. The second shift of workers will get night allowance of Rs 10 and the third shift workers will get an allowance of Rs 15 each.

REMUNERATION In Rubco woods, the workers are paid n time rate system. The remuneration of workers is paid as per minimum wage Act of 1948 and the managerial person’s remuneration as per the kerala service rule. Company uses the method of paying double wage in case of overtime and triple wage in public holidays.

COMPENSATION Compensation means something done by the company to make up for the loss, deficiency or a fault. The different components of compensation include the following.

a.

Bonus Bonus means something given or paid by the company in addition to what is usual

or expected. In other words, bonus is the sum of the money or equivalent given to the employee in addition to the employee’s usual compensation. Bonuses are provided to the employees in the festival seasons and for occasions happen in the company.

b.

E S I (employees state insurance) and provident fund (p f) Rubco haut wood Pvt Ltd provides employee state insurance and provident fund

to the employees. The employer’s contribution to ESI is 1.75% and employee’s contribution is 4.75% . The employee’s contribution to the P F is 12% and employer’s contribution is 13%.

An organizational study report of Rubco Huat Woods Pvt Ltd.

WELFARE ACTIVITIES The following are some well fare activities given to employees;

Labor welfare

:

Labor well fare funds are given by the company to increase the standard of living.

Canteen

:

The company providing quality foods to the employees. kudumbasree unit with the company complex runs rubco’s canteen.

Rest room

:

The company provides rest room for the shift workers.

Change room

:

For the workers to change their dress, a change room is established in the factory premises.

Safety

: Safety measures like ear plug, glows, cooling, glass and masks are given to the employees who work in the factory.

LEAVE PROVISIONS Leave with wages will be allowed to the workers as provided for the factories Act. The company allows an annual leave of 12 days to these employee’s having as service of 240 days, in the plant excluding other leaves. As per ESI Act, 10 days sick leave and maximum of 30 days in the case of hospitalization are also there. HOLIDAY Festival holiday fixed as per national festival Act. Now 13 days are allowed for festival holidays. National holidays will be allows to the workmen on provided for in the kerala industrial establishment Act.

An organizational study report of Rubco Huat Woods Pvt Ltd.

RETIREMENT On attain the age of 58, the entire employee made to retire from their service. Various benefits like pension, gratuity are sanctioned on retirement. All the rules regarding retirement in Rubco are governed by standing order. A standing order is an act, which guides the service rules of employees and employers.

DICIPLINARY PROCEEDINGS 1 Transfer Employees are liable to transfer from one department to another department of from one section to another section without any increase in pay.

2 Demotion In the case of misbehavior on the part of employee the concerned employee will placed in the lower position. Demotion begins with the reporting the management about the misconduct and management will appoint an enquiry committee and the disciplinary actions for him are depend up on the nature of misconduct. TRADE UNION The trade union is a inevitable part of modern industrial setup. Trade union influences industrial democracy morale and productivity. Rubco haut wood has only one trade union that is Rubco employees union (REU), which is affiliated to CITU. Since there is only one trade union there is no inter union rivalry.

ABSENTEEISM AND TURNOVER One of the problem rubco haut wood facing to today is the increasing rate of labor turnover. it is the outcome of resignation and dismissal of workers. Some of the reason for the resignation is getting better job, dissatisfaction with working condition, sickness etc. Main consequences of labor turnover are losing expert hands, decrease in productivity, increased cost of recruitment etc.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of HR department

MD

GM

APO

TIME OFFICER

COMPUTER PROGRAMMER

STENO

JUNIOR CLERK

HEAD GUARD

SECURITY GUARD

RECEPTIONIST

DRIVER

ATTENDER

TYPIST

An organizational study report of Rubco Huat Woods Pvt Ltd.

FINANCIAL DEPARTMENT INTRODUCTION Financial management, also referred to as corporate finance or managerial finance, emerged as a distinct field of study at the turn of 20 th century. Finance theory; in general, rest on the premise that the goal of financial management should be to maximize the wealth of the share holders. Finance refers to the application of skill or care in the manipulation in the use and control of the money .The finance in the modern business world is the life blood of business economy. We cannot image a business without finance because it is a central point of all business activities. FINANCIAL FUNCTIONS Passing and settlement of all miscellaneous advances. Perform all works connected with insurance coverage of fixed financial asset. Keeping personnel files of employees relating salary computation annual increment. Prepare profitability, trend, reports, and wages analysis. Quarterly and yearly financial report preparation. Making blank statements Preparation, assisting and coordinating of all works connected with finalization of accounts. Assisting statutory/ vigilance/ auditors from head quarters in connect with audit of accounts of rubco rub wood division. Make internal and external purchases.

RESPONSIBILITIES OF FINANCIAL MANAGER Financial planning Rising of necessary funds. Controlling the use of funds Deposition of profit Accounts finalization Tax planning

An organizational study report of Rubco Huat Woods Pvt Ltd. Book keeping and accounting Internal audit &Profit planning

CAPITAL BUDGETING Capital budgeting is done at the beginning of the year itself. The requirements of capital will be specified clearly for the approval. During the budgeted year, if there is any further requirement of capital is faced then the proper justification has to be made. If the requirement is seen as important on then approve of the capital is sanctioned the requirement of additional capital may arise due to change in price of raw materials, packing materials, transportation cost etc

CASH MANAGEMENT Cash management system is one of the key areas in any business, apart from the fact it is the most liquid current asset can be reduced. Cash is the common denominator to which all current assets can be reduced because that the other major liquid asset receivable and inventory get eventually get converted in to cash.

CREDIT CONTROL FUNCTION A trade credit arises when the company sells its products or services on credit and does not receive cash immediately. it is an essential marketing tool, acting as bridge of movements of goods, or services through production and distribution stagers to customers. A company grants credit to protect its sales from the competitor and to attract the potential customers also. rubco rub wood furniture division does not give any credit to customers. The sales are making through advance payment or spot payment.

PLANNING OF FUNDS Planning of funds is a careful estimate made by the manager about the total funds required, which includes both fixed and working capital requirements. This estimation is done by the observation over the physical activities of the company. ALLOCATION OF FUNDS Providing the funds to proper place at proper time is also an important task to be done by financial manager studies the cash requirements of each department and funds are distributed.

RECORDING OF TRANSACTIONS

An organizational study report of Rubco Huat Woods Pvt Ltd. Each and every transactions of the company are recorded first in journal and posted to ledgers.

WORKING CAPITAL Working capital refers to the amount required to meet the day to day operations of the business the working capital of the company is 80 lakh per month complete rise working capital in the following ways Cash Inventories Accounts receivable.

FIXED ASSET It is the major part of working of a company. Depreciation of fixed asset is charged on the diminishing balanced method. Vehicle Plant and machinery Generator Building

COST CONTROL The costs are controlled in raw material and reduction to expense there is limitation of utilization of funds. The company will all ways have the comparison of budget actual.

AUDITING The accounts of the company should be compulsorily audited. The auditing work is done by m/s Varma & Varma, kannur. There is an internal auditing system which is done by the internal auditor.

TAX STRUCTURE Company pays sales tax, income tax and excise duty ( 14%) VAT 12.5% to the kerala Govt.in accordance to change in state budget.

An organizational study report of Rubco Huat Woods Pvt Ltd.

STRUCTURE OF FINANCE DEPARTMENT

MD

GM

A/C OFFICER

JUNIOR CLERK

JUNIOR CLERK

An organizational study report of Rubco Huat Woods Pvt Ltd.

PURCHASE DEPARTMENT INTRODUCTION The purchasing department plays a very important role in organization because purchasing has effects on every vital factor concerning the manufacture, quality, cost, efficiency, and prompt delivery of goods to customers. The purchasing department is responsible for the efficient purchase of all goods of proper quality required for the different department. Purchasing is the most important function of material management as the moment an order is placed for the purchase of materials; a substantial part of the company finance is committed which effects the cash flow position of the company. The head of the department is usually known as purchase manager.

FUNCTIONS OF PURCHASE DEPARTMENT To establish purchase policies, procedure and practices. To identify and choose the best source of supply materials To receive purchase requisition from all departments. To place purchases order with supplier and maintain records To check the quality and quantity of materials received. To verify and approve the invoice for payment

Functions of purchase department in rubco The company mainly requires two types of materials- direct material and indirect material. The direct materials for rubber wood furniture product are the round log rubber wood and indirect material includes hardware item used for production. The amount of raw material purchased by rubco is around 30 lakh per month which comprises item including rubber wood andhard ware item like screws, bolt, nail etc consumables like machine belt, lubricant oil, engine oil, break oil etc chemicals like boric acid and borax finger glue Lacquer items, thinner, Steiner, sanding belt paper etc.

An organizational study report of Rubco Huat Woods Pvt Ltd.

As a substantial portion of the company’s finance is used for purchasing the rubber wood, the purchase department should keep in mind the following specifications at the time of purchasing rubber wood The logs must have a minimum of 24 inch diameter It must have minimum of 4 feet to 8 feet length There must be no tapping mark, bending, nails etc Logs having excess fiber should be rejected At present suppliers of rubber wood are from; Kerala

:

Perumbavoor, Taliparanba, Kasargod, Iritty

Karnataka

:

Sullys, Manglore

PURCHASE PROCEDURE Rubco is following a purchase procedure which is very systematic and scientific. The main objective of this purchase procedure is to ensure all material to confirm to the specific requirements. The following are the various purchase procedure which are followed by rubcu huat Pvt Ltd.

1 Receipt of purchase requisition The purchasing function of ruubco huat Pvt Ltd starts from receiving purchase requisition. A purchase requisition is a form is used as a formal request to the purchasing department to purchase materials. This form is prepared by the departmental heads for special materials not stocked as regular items. It contain the details with ordering number and specification if any, quantity of item and required date etc.

2 Inviting quotations The company calls tender for purchase of materials from approves and provisional vendor. In responds to this tender the company gets the quotation from various suppliers that they are ready to supply goods by specifying the quality and price.

3 Preparation of comparative statement. On receipt of quotations from the suppliers, the purchase officer prepares a comparative statement on analysis of the quality of raw material at low rat.

An organizational study report of Rubco Huat Woods Pvt Ltd.

4 Selections of suppliers After the preparation of comparative statement, this comparative statement is forwarded to purchase committee. The purchase committee select the most favorable supplier by considering the person who is supplying good at least cost with prescribed quality and with in the prescribed time.

5 Preparation of purchase order After getting approval from purchasing committee, purchase department prepares purchase order. Purchase order is a written authorization to the supplier to supply the material. The purchase order contain the information such as material description quality , rate, total cost delivery rate, terms and conditions etc.

6 Preparation of goods receiving notes at the store Once the order is placed, the suppliers deliver the required materials . on receipt of item stored in the department will prepare goods receiving notes and forwarded to the purchase department for further proceedings.

7 Recommendation of invoice for the release of payment to the suppliers After proper documentation by the purchase department the invoice and goods receiving notes are forwarded to the financial department for arranging the payment. Usually the company makes the payment to the supplier with in one month.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of Purchase Department

Managing Director GM

Purchase Manager

Purchase asst. Manager

Stock Keeper

Asst. Store Keeper

An organizational study report of Rubco Huat Woods Pvt Ltd.

SALES AND SHIPPING DEPARTMENT INTRODUCTION Rubco sales international Ltd is the sales and marketing outfit of entire rubco group of companies. The company is run by eminent professionals with the active support from the management. The company has already well established dealer/ distributor net work and it is expanding its horizon throughout the world. Rubco haut Pvt Ltd has one sales and shipping officer. He controls the sales activities in the company. Shipping an activity taken by central exercise, they check all products in the company itself to avoid damages incurring in loading. Loading of goods in the container at shipyard is called shipping. Shipping of product is done from Cochin shipyard.

FUNCTIONS OF SALES DEPARTMENT Receiving data from dealers and arranging for the dispatching of products. Preparation of invoices and other related document for dispatch Maintaining of sales register and filling of sales tax returns and other statutory records with the sales tax department Maintaining and submission of statutory documents pertain to central excise department Preparation of quotations as per the requirement from the parties in consultation with the production department and accounts officer.

FUNCTIONS OF SHIPPING DEPARTMENT Preparations of pro necessary shipping documents and forward the documents to clearing and forwarding agents. Coordination with CHA for placement of containers Issue of staff and transportation at lowest cost

Post shipment documentation Preparation of post shipment documentation and forward same to the bankers. Preparation of bank realization of certificate

An organizational study report of Rubco Huat Woods Pvt Ltd. To coordinate/ follow up with the bank to ensure that the payment has been received in time Maintenance of register of export for each unit.

FUNCTIONS OF EXPORT SECTION Finalization of export contract. Coordination between departments and matters connected with export Issue of packing instructions for export to concerned department Make arrangement for inspection of goods.

EXPORT PROCEDURE Locating the potential buyer by searching through various portal, trade journals, foreign visit export promotion councils and also by responding enquiries. Contract thus by mail, telephone and intimating the company intention. Negotiating prices terms of payment and delivery terms. Sending sample brochure and other requests If price and terms are approved, awaiting their purchase order/ contracts. Filling shipments documents through the(custom home agent). Providing necessary advice to buyer Follow up the cargo till it reaches the destination. Effort for the order. Obtain buyer feedback and product quality.

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure of sales and shipping department MANAGING DIRECTOR

GENERAL MANAGER

SALES AND SHIPPING OFFICER

JUNIOR SALES OFFICER KERALA

SALES EXECUTIVE

JUNIOR SALES

SALES EXECUTIVE

JUNIOR SALES OFFICER KERALA

SALES EXECUTIVE

JUNIOR SALES

SALES EXECUTIVE

An organizational study report of Rubco Huat Woods Pvt Ltd.

PORTER’S FIVE FORCE ANALYSIS OF RUBCO HUAT WOODS : Michael Porter found five competitive forces that help to exist in the market by every single industry. These forces used to analyze position of the firm in the industry and market. Thus it helps in decision making process also for improve its efficiency and profitability in future.

1. Threat of New Entrants The threats of new entrants are very low. In kerala it is very difficult to a new firm to enter in furniture market. New entrants would be less because of the huge amount of investment to set up a furniture company.

2. Bargaining Power of Suppliers Suppliers for these items are closely related with RUBCO

Timber

An organizational study report of Rubco Huat Woods Pvt Ltd. Polish material’s Miscellaneous The purchasing department must be very careful regarding purchasing of everything and to ensure that all items conform to their quality standards. This purchasing department must want to take care in the cost of product also.

3. Threat of Substitute Furniture made of steel; plastic, fiber etc. are threat to companies like Rubco furniture which make their furniture out of wood. Such furniture’s are less costly compared to those made of wood and are also available in a number of designs. They are long lasting and easily portable from one place to another. So, there is a chance that customers may get attracted towards such furniture’s. So the threats of substitutes are more

4. Bargaining Power of Customer The bargaining power of customers in furniture industry is high, but in RUBCO furniture it is low since they give life time guarantee for their products. But, at times when the customers who come are related to the managing partners or relatives of other officials in the company, they will be forced to give some reductions in the product.

5. Existing Competition At present RUBCO is having no major competitor at its market place and enjoying almost monopoly like situation, Furniture industry in India has started growing in a vast manner. Furniture being a necessity its need have risen to a large extent. Now days they have started developing the industry.

An organizational study report of Rubco Huat Woods Pvt Ltd. .

7’s McKINSEY MODEL BACK GROUND OF THE MODEL The 7’s model is better known as Mc Kinsey’s 7s. This is because the two persons who developed this model. It is developed by tom peters and Robert waterman. They published their 7’s model in their article “structure is not organization “(1980) and in their books “the art of Japanese management” (1981) and in search of excellence (1982).

Structure

Strategy

System

Shared Values Style Skill

Staff

Mckinsey’s 7’s model

An organizational study report of Rubco Huat Woods Pvt Ltd. The 7’s model is a tool for managerial analysis and action that provides a structure with which to consider a company as whole. So that the organizations problems may be diagnosed and a strategy may be developed and implemented. The 7s of Mckinsey’s model are: Strategy Structure System Style

Staff Skill Shared values

These are the 7 s elements are distinguished in so called hard S’s and soft S’s. The hard elements are feasible and easy to identify. They can be found in strategy statements corporate plans organizational charts and other documentations. The four soft S’s however, are hardly feasible. They are difficult to describe since capabilities values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organizations. Although the soft factors are below the surface, they can have a great impact of the hard structure, strategies and system of the organization.

Practical relevance of hard S Here strategy, structure and system can consider as “Hardware” of success of an organization.

Strategy

An organizational study report of Rubco Huat Woods Pvt Ltd. Actions a company plans in response to or anticipation of changes in the external environment.

HRM strategy of Rubco Huat Woods Pvt Ltd To provide social welfare measures to work force To make the best and efficient To recruit and select right person for the right job at the right time in the right place.

Production strategy of Rubco Huat Woods Pvt Ltd Producing high quality of goods Quick production of products or goods Efficient use of raw materials Minimize the waste in the production process

Financial strategy of Rubco Huat Woods Pvt Ltd Maintaining the perfect accounting and auditing system Reducing the block of capital Maintaining the cash receivables

Marketing strategy of Rubco Huat Woods Pvt Ltd To create new customers To motivate the sales team Making profit through customer satisfaction Develop a pricing strategy

An organizational study report of Rubco Huat Woods Pvt Ltd.

Structure Organizational hierarchy - RUBCO rubber wood division.

Chairman

Managing Director

General Manager

Chief Production Manager

Purchase Manager

Account s Officer

Admin cum personnel Officer

Sales & Shipping Manager

Marketing Manager

Productio n Manager

Store Keeper

Junior Clerk

Time Officer

Sales Executiv e

Asst Marketing Manager

Shift Engineer

Clerical Staff

Head Guard

Clerical Staff

Junior sales officer

Quality Superviso r

Section Supervis or

Computer programmer

Maintenance Engineers

Skilled/unskilled workers

Sales Executive

An organizational study report of Rubco Huat Woods Pvt Ltd.

System The formal and informal procedure that support the strategy and structure.

System of HR in Rubco Huat Woods Pvt. Ltd The system oh HR undertaken by Rubco is enough competent for leading their employees towards the ultimate objectives. Below given the diagram briefly explain the system of HR in Rubco.

Resource Requirement

HR budgeting

Resource Planning

Resource allocation

Selection process

Responsibilit y allocation

Performance verification

Appraisal employees

Training on job

Posting for new area

Performance evaluation in the new area

Designing of system in new area

Implementatio n of HR system in new area

Study the conformance in the new area

Check the effectiveness of each employee

Allocation of duties, responsibilities and authority of each personnel

An organizational study report of Rubco Huat Woods Pvt Ltd.

Practical relevance of soft ‘S’ Skill, style, staff and shared values can be seen as the “software” of success of an organization

Skill The Rubco’s recruitment is mainly through advertisement in leading newspaper based on the recruitment of the organization. The MD consulting with administrative personnel officer to decide the number and type of people needed for the organization.

Qualification required for the personnel Technical staff

: ITI/Diploma and 1or 2 years experience

Office staff

: Degree, sufficient computer knowledge, Fluency in English and minimum 2 years Work experience.

Managerial personnel

: Minimum 5 years of work experience, Qualified from reputed institution and have a relevant knowledge in the latest Computer terminologies and MBA

Style It says about how the decisions are made and the flow of authority in the organization. The Rubco was using the participative leadership style order to take the decision is taken by the management by discussing with concerned supervisors or workers. The organization is taking the day to day decision such as the quality of output usage of materials, purchasing etc are determined by the production manager to concerned supervisors or workers. So the decision making is decentralized.

Staff The term staff refers to the way organization introduce young recruits into the main stream of their activities. Around 775 workers are working in the company. They are Specialist / highly skilled workers – 35

An organizational study report of Rubco Huat Woods Pvt Ltd. Skilled workers – 146 Unskilled workers – 347 Semi skilled workers – 31 Learners – 54 Casuals – 73 Saw workers – 35 Staff (including managerial staff) – 54

Shared values These are the guiding principles, fundamental ideas around which a company is built. It must be simple usually stated at the abstract level, have great measuring inside the organization even through outside may not understand them. These are the main values on which the company is built. These values are shared by the members in the organization. It remains customer focused by providing the quality cost and through manufacturing excellence, adopts a continuous of all organization activity to meet dynamic requirement of customers. It empowers all employees across the organization to achieve total quality. The company aims at customer delight by exceeding expectation blend of qualitycost-delivery of the company’s products and services that company provides.

An organizational study report of Rubco Huat Woods Pvt Ltd.

SWOT ANALYSIS The overall evaluation of company’s strength, weakness, opportunities and threats is called SWOT analysis.

INTERNAL ENVIRONMENT ANALYSIS (STRENGTH/ WEAKNESS) Each business needs to evaluate its internal strength and weakness periodically. It can do so by using a form shown in the marketing memo checklist for performing strength/ weakness analysis management or outside consultant, review marketing, financing, administration, manufacturing and organizational competencies and rate each factor as major strength or minor strength or neutral factor, minor weakness or major weakness.

EXTERNAL ENVIRONMENT ANALYSIS (OPPORTUNITY AND THREAT ANALYSIS) In general, a business unit has to monitor key macro- environment forces (demographic environment, technological, political legal and social cultural) and the significant micro environment factors (customers, distributors, dealers, retailers) that affect its ability to learn the profit.

STRENGTH Rubco mattress division has lot of product variety and price range. In the company there exist a cordial relationship between employee and top level management and among dealers and distributors. Through effective marketing the rubco products could have acquired with market acceptance and customer preference with in a short period of being established. Rubco has well developed corporate strength; this is one of their major strength. Style of leadership that company is leadership through dedication and coordination. That encourages employees of organization to work towards their organizational goals.

An organizational study report of Rubco Huat Woods Pvt Ltd. Strength of the company lies in the quality of products, wide range of products capable to challenge variable environment conditions, goodwill, and customer service, tech advice, marketing intelligence, wide network, and interaction with customers. Effective material management system. Ability of top level management to manage strategic change Good financial management system.

WEAKNESS The company is newly established. There for most of the employees are fresher. There for company has to be conduct lot of training program to make the employees suitable for the work environment. So large volume of productive time consumed is to make enable there in experienced worker to familiarize with their work procedure to be followed. The weakness appearing most conspicuous to make their product acceptable By customer in the higher price compared to their competitors. Rubco going to expand their market overall in south India but transportation from kerala to other market will be a big burden they are facing in the marketing. When comparing to their competitors they can easily supply goods in to market according to market demand because they are having manufacturing plant in their states.

OPPORTUNITIES The company has introduced lot of product variety in the market there for customers having lot of alternatives to make their on decision. Rubco rubwood division is not yet fully tapped their hundred percentage utilization of existing machine capacity so opportunities lies there. In factory to undertake new project regarding project diversification. Opportunity of identifying the region where introducing more and more quality products so that product structure can withstand and different regional environment.

An organizational study report of Rubco Huat Woods Pvt Ltd. Rubco is not facing high level of competition, so their products having higher demand in the market, it is because of the quality policy that they are also adopting in the production process. Rubco furniture has customer in European countries also.

THREATS Each and every company facing threats in the market because customers requirements are changing day by day rubco is also facing the same problem A lot of unauthorized companies are came in to existence in the market they are providing product of low quality at few ever price and attracting small customers Lack of raw material is also a major threat faced by the company

An organizational study report of Rubco Huat Woods Pvt Ltd.

FINDINGS o Kerala state rubber corporation has in short span, redefining cooperative sector functions and set the place for the cooperative movement in Kerala today. Rubco was set up in year 1997 with the objective of effectively utilizing the abundantly available rubber in Kerala. o Majority of worker having 6- 10 years of experience o Workers are satisfied with the motivational level provided by the company. o More skill based activities are there in the company so educational qualifications of workers are mostly till sslc and +2.

FOLLOWING SUGGETIONS ARE MADE Rubco has market in other country, but the company has to strengthen their supply chain. In order to tap the target market the company has to strengthen their supply chain all over India It has lot of franchises in Kerala they must start new outlets in various cities in our county. It can increase their productivity by utilizing the availability of the employees and by adding plant and machines. The company has to take care about to provide conveyance facility to employees. The organization must be provide more counseling program to boost up employee morale. If the management provide performance and potential appraisal for employees, that will be better for the organization. Management should take interest in the career development of its employees More attractive and informative website should be created.

An organizational study report of Rubco Huat Woods Pvt Ltd.

CONCLUSION During this period I understood that the rubber wood has very good future and it’s furniture will have demand in the market. It can compete with other wood based furniture product many countries are trying to improve their productivity, in India Rubco board (under Govt of India) plays a major role for helping the farmer for improving their Rubber plantation. During the past few years the production were increased and the states like Kerala. It is a success. The Kerala state rubber cooperation has 5 division and more than 2000 people are working there. The industrial relation atmosphere is cordial and the focus is also on training at all levels including workman.

Rubco is in developing stage, and due to heavy expansion plans taken by the company has declining trend of profit but this position will be recovered in long run

An organizational study report of Rubco Huat Woods Pvt Ltd.

BIBLIOGRAPHY

BOOKS KOTLER , PHILIP – MARKETING MANAGEMENT RAO , V S P – HUMAN RESOURCE MANAGEMENT RAM CHARAN -LEADERS AT ALL LEVELS

WEB WWW.ANSWER.COM WWW RUBCOGROUP.COM WWW.RUBCO HAUT WOOD.COM