AN

ASSIGNMENT

ON

“HUMAN RESOURCE DEPARTMENT OF SUMUL DAIRY”

SUBJECT: HUMAN RESOURCE MANAGEMENT

MBA SEMESTER - II

CLASS: A1

S.R. LUTHRA INSTITUTE OF MANAGEMENT

GUJARAT TECHNOLOGICAL UNIVERSITY

SUBMISSION DATE: 28th April 2020

GROUP NO: 09

SUBMITTED TO: SUBMITTED BY:

Mr. Mehul Mehta Bonvi Patel -197500592016

(Assistant Professor) Hardik Kukadiya -197500592035

Karan Sukhadiya -197500592050

Khudia Vandita -197500592053

Deep Malani - 19500592061

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 INDEX

Sr. No. Particulars Page No.

1. Introduction 3

2. Hierarchy of Organisation 4

3. HR Objective 5

4. Role of HR in SUMUL 5

5. Human Resource Activities 5-6

6. Facilities Provided to The Workers 6-7

7. Human Resource Planning 7

8. Recruitment & Selection Process 7-9
Recruitment process 7-8
Selection process 8-9
9. Training & Development System 9-11
10. Motivation Programmed for the Agents 11
11. Performance Appraisal System 12
12. Promotion & Transfer Policy 12
13. Wages & Salary Structure 13-15
14. Personnel information system & payroll accounting 15-16
system
Employment Records kept 16
15. Industrial Relations 17
16. Grievance Handling System 18
Bibliography 19

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1. Introduction: -

The Sumul district Co-operative milk producer’s union ltd. (SUMUL dairy) is a co-
operative endeavor committed to help marginal farmers and down trodden tribal people to
lead to a healthy life and better standard of living through scientific animal husbandry
practices. Today’s Sumul enjoys the pride to serve milk and milk products to populous Surat
city and surrounding towns of it.

Sumul holds strong brand equity in Surat district and command more than 70% of the
liquid milk in Surat city, to make the distribution system fast and to deliver milk in time they
have as many as milk transportation routes and 1531 agents (1386 regular and 145 full time).

The area of operation of Sumul is the entire district of Sumul. The present milk
procurement of 160.929,736 liters of milk annually makes it the third largest union in the
state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is
around 4.5 lakh liters per day. This has necessary active development of “by-product”
market.

Products so far introduced are paneer, ghee, flavored milk, Shrikhand, sweet, lassi,
butter-milk etc.

Sumul consists of 13 Board of directors, one each of 13 talukas of Surat district and
these boards of directors from themselves elect the chairman. The total number of employees
is 1100 besides the contract workers.

Under Sumul’s activities, Surat district is now firmly established as a milk shed and is
growing from strength to strength.

Hence, Surat district co-operative milk producer’s union ltd, SUMUL is trade name and
literally meaning sound process, came in to existence on august 22, 1951…. The formal
commissioning of the pasteurization plant on March 17,1968 was a turning point from
Sumul.

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2. Hierarchy of Organization: -

Board of Director

Chairman

Managing Director

Senior Executive Officer

Junior Executive Officer

Senior Assistant

Junior Assistant

Technician

Workman

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3. HR Objectives: -

➢ To develop and sustain core values.

➢ To develop business leaders of tomorrow.
➢ To provide job contentment through empowerment, accountability and
responsibility.
➢ To build and upgrade competency through virtual learning, opportunities for growth
and providing challenge in the job.
➢ To foster a climate of creativity, innovation and enthusiasm.
➢ To enhance the quality of life of employees and their family.

4. Role of HR in SUMUL: -
➢ Alignment of HR vision with Corporate Vision
➢ Shift from support group to strategic in business operations
➢ HR as a change agent.
➢ Enhance productivity and performance by developing employee competency and
potential.
➢ Developing professional attitude and approach
➢ Developing ‘Global Managers’ for tomorrow to ensure the role of global players.

5. Human Resources Activities: -

➢ The main activities of this department are selection, training, recruitment, and welfare
actives.
➢ To diffuse the effect of Global Competition, Sumul has adopted the latest concepts
of management practices and provided appropriate training with the help of leading
institute from time to time for up-gradation & development of its Human Resource.
Some of the efforts of Sumul to achieve this are:

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 Employee Personality Development (Attitude, skill & 1995
Knowledge)

Self-Development (Self-management Leadership, Meditation) 1995

Total Quality Management, QC, SGA, Kaizen, SQC 1996

Total Productive Maintenance 1999

Meditation Hall 2000

6. Facilities Provided to The Workers: -

I. Washing facilities:

The facility for washing clothes is provided to all the employees.

II. Storage & Drying facility:

The full-time workers are given personal lockers to store their things and also facility
for drying clothes.

III. Canteen facility:

Canteen facility is provided to employee to take Break-fast, Lunch and Dinner at

economic price.

IV. Rest room:

Rest room is also provided to take rest during the Lunch hours.
V. First aid facility:
First aid facility is given for quick remedy of employees, when any accident occurs
during the working hours of the organization.
VI. Vehicle parking space:
Vehicle parking space is provided for employee, worker and visitors separately.

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 VII. Accommodation:
Organization has provided township & accommodation facilities to employees.
VIII. Vehicle loan:
Vehicle loan is given to Employee / Executive only.
IX. Department stores:

“KAMDHENU” department store is in the staff ready credit society / Staff Quarters
to purchase all necessary items at economic rate for employee.

X. Uniforms, Shoes and Raincoats:

Uniforms, Shoes and Raincoats are provided to all employees and workers.

XI. House rent recovery:

House rent recovery for those employees who live in rental house.

7. Human Resource Planning: -

When there is any vacancy or some requirement comes up in the organization. Human
resource planning is being done.

8. Recruitment & Selection Process: -

Recruitment:

Sumul as such does not have a well-defined recruitment policy. Recruitment is

basically done by HRD department in consultation with the concerned department for which
new employee is required. It is not a regular event as recruitment is done only when there is
any vacancy or some requirement comes up in the organization. All the new employees must
meet the minimum experience and qualification criteria as set by personnel department.

Recruitment Process:

➢ HR Department receives requisitions.

➢ Locating and developing the sources of required number and type of employees.
➢ Identifying the prospective employee.

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 ➢ Communicating the information.

Generally, two types of sources are used in the Organization:

i. Internal sources

It is generally done through promotion and training programs.

ii. External sources

➢ Direct Personal Interview:

By giving advertisements in the newspapers

➢ Employment exchange:
These agencies are providing a wide range of services, counseling assistance in
getting jobs, information about the labour market and labour wage rates.

➢ Campus interview:

➢ Advertisement:

Selection Process:

The Selection Process is concerned with determining whether an applicant meets with
all the qualification need to perform a particular job. It means right person a right place. It is
very important because of a wrong person is selected it will cost to the company. Need of
selection would be arise when vacancies are made in organization. Procedure for selection
differs from organization to organization and from job to job.

For Executives:

➢ Written Test
- Aptitude test
- Subject test
➢ Group Discussion
➢ Interview
➢ Final selection

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 For Non-Executives:

➢ Written Test
➢ Final interview
➢ Final selection

9. Training and Development System: -

“To bridge the gap between job requirements and present competence of an employee”

Need for Training:

1. Job Requirements.
2. Technological Changes.
3. Organizational Viability.
4. Internal Mobility
5. Organizational Viability.
6. Internal Mobility

Training is given in 3 Categories-

1. Management Training.
2. Office Training
3. Senior Executive Training

The management training is given for 6 months. Officers and senior Executives attend
the management development programmed organized by the institute. Training is not
uncommon in Sumul. It has an elaborate training program to make employees acquire new
skills and knowledge. Both internal and external training is carried out as and when required.
Following are the data of internal and external training programmed conducted by Sumul in
the last five years.

The management training is given for 6 months. Officers and senior Executives attend
the management development programmed organized by the institute. Training is not

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 uncommon in Sumul. It has an elaborate training program to make employees acquire new
skills and knowledge. Both internal and external training is carried out as and when required.
Following are the data of internal and external training programmed conducted by Sumul in
the last five years.

Number of Training Programs

Programs 2018- 2017- 2016- 2015- 2014-

19 18 17 16 15

No. of in-house 44 53 20 - -
Programs
No. of Participants 1762 628 415 - -
No. of External 9 9 14 16 22
Programs
No. of Participants 55 31 43 55 57
Total Programs 153 62 34 16 22
Total Participants 1817 859 458 55 57

In addition to this, Sumul also has the policy to sponsor employees for higher education
to various institutes. The following table shows the number of employees sponsored by
Sumul.

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 Number of Employees sponsored for higher studies

Particulars 2018-19 2017- 2016- 2015- 2014-

18 17 16 15

Employees 2 2 1 - -
Sponsored
for
Advance continue
Study

10. Motivation Programmed for The Agents: -

Agents are front soldiers in the market, so keeping them motivated is very essential. In
this regard the union has planned to conduct several programs regularly, such as
• Arranging agents meeting area wise in heir area itself to understand their problem.
• Half yearly general meetings of all agents in dairy.
• Performance based award system.
• Recognition of regular agents.
• Arrangement of soft loans for vehicle, deepfreeze and household things with the
negotiation of bank.
• Solving agents’ problem immediately.
• Training of agents on consumer behavior.
• Efficient cash collection through more cash collection centers near to agents selling
price.
• Agent renewal system introduced.

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11. Performance Appraisal System: -

“Performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in matters pertaining to his present job and his potential for a better
job”.

After recruitment organization gives specific project to the employee to train him. After
completion of this project, it is checked by the authorized person of the department if the
employee does not perform well then, they are terminated from the organization.
Performance Appraisal System is still in rudimentary stage in Sumul. Through Performance
the top management does appraisal or reporting head, it is short on comprehensiveness and
touches only few aspects. However, the silver lining i s that in order to make system
transparent and open, evaluation is cross-checked with the employee by HRD people and in
case of some differences try to solve out the problem.

12. Promotions and Transfer Policy: -

➢ Promotion Policy:

The Management Trainees are given 6-month training and later on if they perform well
are promoted as provisionary and after one year they are confirmed. Moreover, promotion is
given on the basis of education obtain by different personnel.

➢ Transfer policy:

There is not any policy for transfer, but managing director of the organization generally
takes the transfer decisions.

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13. Wage & Salary Structure: -

➢ Dearness Allowance
➢ Additional Dearness Allowance (ADA)
➢ House rent Allowance (HRA)

Some fixed amount of house rent allowance is provided for those who live in rental house.
Sumul has a “fixed increment system” for each level of authority in the organization. Only one
increment is given a year. However, for calculating increment for an employee, the period of time
the day of his joining. Rather month of January and July are considered as base month for the
same. For instance, an employee joining the organization in second week of January in 1999 would
be having his next increment due in 2000 July not in January. There is also a compulsory increment
every 14 and 23 year in which, the employee becomes eligible for immediate next salary scale.
Plus, two increments without any change in his/her designation. However, during last agreement,
upgraded employees have also been given designation as per new salary scale. Recently, Sumul
has revised its pay structure to attract more young talents.

➢ Leave Travel Allowance (LTA)

▪ Every year allowance is given to employees for traveling any place. This
amount is also fixed. Super Annuitant Scheme (SAS) it provided after every
3 years (BASIC+DA+ADA).

➢ Washing Allowances (WA)

▪ Rs. 20/- is provided every month as washing allowances to worker category.

➢ City & Travel Allowance (CTA)

▪ Those who live in city are given these allowances more than those are in the
village.

➢ Shift Allowance (SA)

▪ Shift allowance is provided in following way:

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• PRESENCE FOR ONE-MONTH ALLOWANCE (RS.)

25 & More 65
24 60
23 45
22 30
21 15
20 & Below 00

1. Visiting Allowance (VA)

This allowance is given to the entire field officers and veterinary officer.

2. Bicycle Allowance (BA)

It is given to all permanent employee of worker category.

3. Scooter Allowance (SA)

This allowance is given to all the officers and marketing executives.

4. Driving Allowance (DA)

It is giving to the drivers of tempos and trucks of SUMUL.
Other Components:
a) Bonus
(8.33% of BASIC +DA+ADA)
b) Funeral Fund
Rs.3000 to the ward and family of the dead.
Every month Rs1/- of all higher executives’ salary is maintained for this fund

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 Human Resource (HR)

➢ Centralized Address Director

– Central source for address requirement in any system

– Grouping of addresses

– Data retrieval using multi-dimensional search criteria

➢ Time Attendance System

– Tracking employee attendance data using biometric device (finger based)

– Same data used in payroll for salary processing

➢ Income Tax System

– User defined formulas

– Provisional/Estimated Income Tax statement

– Form 16, Form 24 & SARAL

14. Personnel Information System & Payroll Accounting System: -

➢ Objectives of the Personnel Information

- Basic information about each employee
- Supports unlimited earning & deduction parameters
- Salary Processing & Pay slip generation
- Bonus / Ex-gratia calculation
- PF & SAS passbook
- Payroll data used for Income Tax calculation

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 The HR department keeps the information of each and every employee from top to
bottom level workers. This information is updated from time to time. This Personnel
information includes name, address, gender, birth date, designation, name of the department
where the employee or worker is working, job responsibilities, shift no., job code no. etc.
With the photograph of the worker/employee.

Employment Records Kept: -

After the selection of employee when he is joining the organisation, the employee has to
submit a form which contains some information regarding his personal life or some other
information which is stored in computer and is maintained by establishment sector. This
form contains the following information:

➢ The name, birth date, age, height, weight, passport size photo, power of classes,
marks of identification, present address, permanent address, nationality, father’s
name, marital status, etc.
➢ The academic data, percentage obtained in S.S.C., other vocational qualification, past
and present employment data, language known, hobbies and interest, information
regarding accomplishment, achievement, reference, etc.

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 ➢ Attach certificate/Xerox copy of certificate in support of age, academic qualification,
experience, etc.

15. Industrial Relations: -

Industrial relation and relation between the workers are good. There is good relation
between the workers and the management, which is essential for smooth running of industry
and also expansion of industry.

Workers should be motivated financially or non-financially and also good-working

conditions should be provided they should be respected and honoured and treated as family
members this increases job satisfaction so for this unity concerned it is medium scale unit
and all the workers are equal and none of them are superior together.

Objectives of industrial relation: -

➢ To safeguard the interests of labour and of management by securing the highest level
of mutual understanding and goodwill among all those sections in the industry which
participate in the process of production.
➢ To avoid industrial conflict and develop harmonious relations, which are an essential
factor in the productivity of workers and the industrial progress of a country.
➢ To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequent absenteeism.
➢ To eliminate, as far as possible, strikes, lockouts by providing reasonable wages and
improved living and working conditions and fringe benefits.
➢ To establish government control of such plants and units as are running at a loss or
in which production has to be regulated in the public interest.

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16. Grievance Handling System: -

Grievances handling is an important tool for solving the problem for employees. Broadly
speaking complains effecting on ear more workers consisted grievances. A complains may
be related to the quantum of wages, the maker of payments leaves, working condition,
promotion, transfer etc.

In SUMUL, following steps are followed for handling employing grievances: -

➢ Any employee can approach his immediate supervision for and complain relating to
his work and working conditions. The supervisor will investigate complain and
consult with his department head and gives replay within 3 days to 1 week.
➢ If the employee is still no satisfied, he approaches factory manager the reply given
by him will be final.
➢ Even if the employee isn’t satisfied then he approaches the manager through trade
union of tries to settle on the basis of arbitration.
➢ A person is appointed as arbitrator and the reply given by him accepted by the
management as well as employees.
➢ But until now as such grievances has taken place. Here sometimes grievance took
place but due to managerial actually. The management takes active action and let the
grievances to be solved.

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Bibliography: -

www.sumul.com

file:///C:/Users//Downloads/19491449-sumul.pdf

file:///C:/Users//Downloads/47379971-Sumul-district-co-operative-milk.pdf

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