INTRODUCTION OF CERAMIC TILE INDUSTRY

Rumors have it that the first clay tiles were produced seven to eight thousand years ago in the area now known as the Holy Land. Many sources independently verify that the actual known history of Tiles (and the known usage of wall and floor tile coverings) can be traced back as far as the fourth millennium BC (4000 BC) to Egypt. In those days, in Egypt, tiles were used to decorate various houses. Clay bricks were dried beneath the sun or baked, and the first glazes were blue in color and were made from copper, very exquisite! During that period ceramics were also known to be found in Mesopotamia. These ceramics bore decorations, which were white and blue striped and later possessed more varied patterns and colors. Later on, in China too, the great center of ceramic art, a fine, white stoneware with the earliest Chinese glaze was produced during the Shang-Yin dynasty (1523-1028 BC). The usage and the art of making and decorating ceramic tiles had spread and by 900 A.D., decorative tiles had become widely used in Persia, Syria, and Turkey and across North Africa. As transport and communication developed, tile usage and its penetration in other territories increased. Wars and territory take-over caused this art to spread even faster. The Romans introduced tile making in Western Europe as they occupied territories. The Low Countries of Northern Europe somehow acquired the technology from Persia, while the Moors brought African tiles with them when they invaded Iberia (Spain). It was aboard the ships of Spanish conquistadors that decorative clay tiles found their way to the New World, where they were used primarily to decorate the Churches of newly built missions. A form of tile making had also evolved among the natives of North and South America at some point. The first decorative tiles to appear in Colonial North America were imported from Northern Europe, mainly England the Brits having hijacked the technology from the Dutch.

The tiles were too expensive for utilitarian purposes in the Colonies and were found almost exclusively in the homes of the wealthy. Through the centuries, tile decoration was improved upon, as were methods of tile manufacture. For example, during the Islamic period, all methods of tile decoration were brought to perfection in Persia. Throughout the known world, in various countries and cities, Ceramic tile production and decoration reached great heights. The tile mosaics of Spain and Portugal, the floor tiles of Renaissance Italy, the faiences of Antwerp, the development of tile iconography in the Netherlands, and the Ceramic tiles of Germany are all prominent landmarks in the history of Ceramic tile. In the early days, the tiles were hand-made, each tile was hand-formed and handpainted, and thus each was a work of art in its own right. Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on buildings. Today Ceramic tile throughout the world is not hand-made or hand-painted for the most part. Automated manufacturing techniques are used and the human hand does not enter into the picture until it is time to install the tile. They are used in an almost infinite number of ways and you dont have to consider yourself wealthy to own them. In commercial buildings, where both beauty and durability are considerations, ceramic tiles will be found, particularly in lobby areas and restrooms. In fact most modern houses throughout use Ceramic tiles for their bathrooms and kitchens and in every vital area of the premise. Ceramic tiles are also the choice of industry, where walls and floors must resist chemicals. And the Space Shuttle never leaves Earth without its protective jacket of high-tech, heat resistant tiles.

CERAMIC TILE INDUSTRY IN INDIA

Industry Highlights

Ceramic Tiles are furnishing materials apart from being utility or hygiene products - despite an overall slowdown of the economy this sector continues to grow at a healthy 12% per annum.

Investments in the last 5 years have aggregated over Rs. 2000 crores (or INR 20 Billion) and production during 2003-04 stood at approx. 200 million sq mts. Growth of the unorganized sector accounted for 44% of total production, which bears testimony of the attractive returns from this industry. Revenue earning industry - excise mops up over Rs. 150 crores (or INR 1.5 Billion) annually from the organized sector itself. Ranks in the top 7 in terms of production in the world. Market share of India has risen from a little over 1.7% to 2.7% in terms of ceramic tile production. With proper planning and better quality control our exports (presently insignificant) contribution can significantly increase.

Background
Apart from their decorative looks, Ceramic Tiles are primarily hygiene products and that is how our broad spectrum of consumers views the product. This is fairly evident from its usage ranging from bathrooms and kitchens in average Indian households to medical centers, labs, milk booths, schools, public conveniences and countless other centers dotting our surroundings. Popular housing projects are increasingly switching over to Ceramic Tiles from the traditional mosaic and even granite or marble, owing to several factors viz. ease in laying ability, versatility, low price and most important hygiene. Nevertheless, this decorative aspect of a Ceramic Tiles has forever been in the forefront. Heavy churning out of bolder and colorful designs by the industry are testament that most households regard a ceramic tile as an "adornment" for an otherwise "drab look" of their age-old floorings or an unfurnished wall. 3

Overall picture of the Industry

Ceramic tiles as a product segment have grown to a sizeable chunk today at 3.8 million tons production per annum. However, the potential seems to be great, particularly as the housing sector, retails sector, IT & BPO sectors have been witnessing an unprecedented boom in recent years. The ceramic tiles sector has been clocking a robust growth of 12-15% consistently over the last few years. Today, India figures in the top 7 countries in the world manufacturing ceramic tiles. The key drivers for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector. The retail boom in the Indian economy has also influenced the demand for higher end products. Overall the bullish growth estimates in the Indian economy has significantly influenced the growth of the Indian Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Porcelain tile segments. The market shares are 35%, 53% and 12% respectively for Wall, Floor & Vitrified/Porcelain tiles. The tiles are available in a wide variety of designs, textures and surface effects. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror finishes. Both, traditional methods of manufacturing (tunnel tunnel) and the latest single fast firing methods are deployed in manufacturing. Some of the latest trends in manufacturing methods can be seen in India. The investments in the last five years are approx. Rs 2000 crores. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw materials, technical skills, infrastructural facilities despite being fairly capital intensive. A total of 5, 50,000 people are employed, 50,000 directly and 5, 00,000 indirectly. The potential is huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.15 sq. m per person in comparison to over 2 for like countries like China, Brazil and Malaysia.

WHERE WE STAND AND WHAT WE MUST DO?

As a foreign exchange earner or a global player, Indian Tile industry has captured the attention of the world in the ceramic tiles segment. India is projected to figure in the top 5 countries manufacturing ceramic tiles by 2010. This however is subject to policies favorable for the tile industry to complete with international players on an even ground. To compete internationally, our plants must be geared up to large plants like in China and Turkey based on economies of scale. These will also help us in lowering our cost of production significantly. Also, infrastructural support is a key factor that determines the speed of growth. The better the infrastructure, the better is the growth in terms of consistency and sustenance. Supply of power and gas remain the key issues. Availability, consistent supply and reasonable rates are extremely important for the growth of the ceramic tile industry. Also, the policies pertaining to Basic Customs Duty on import of ceramic tiles and raw materials need to be reviewed periodically to prevent dumping of tiles from international suppliers. Rural thrust should be enhanced by favorable excise duty and MRP structure.

Current status of the Industry

The ceramic tiles industry in India has followed similar trends internationally which have been characterized by excess capacities and falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has emerged as a major competitor. Producers from Spain and Italy have the advantage of lower transportation costs while exporting to USA and Germany. In India, the per capita consumption is as low as 0.15 sq.mt. compared to China (2 sqm), Europe (5 to 6 sqm) or Brazil (2.5 sqm). Rising disposable incomes of the growing middle class and 40 million units of housing shortage hold out a great potential. A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. Internationally these tiles are already the major sellers. These categories of products account for 13% of all organized sales in this industry (approx. INR 1.95 Billion). These new products and the conventional wall & floor tiles have together made the organized industry grow to a formidable Rs. 2250 crores (INR 22.50 billion) industry. This coupled with a spate of expansions by many players make the industry look very promising in the future. The Indian Industry has developed an export market although at the lower end. In volume it constitutes less than half a percent of the global market. (Presently India does not figure in the list of major exporting countries). But this reality could change as Indian exports are rising at the rate of 15% per annum. The top-end of the global export market is presently dominated by Italy (40.8%) and Spain (26.4%).

INTRODUCTION TO THE ORGANIZATION

KAJARIA - HISTORY YEAR EVENTS

1985 - The Company was incorporated on 20th December at Kanpur. It manufactures glazed and unglazed wall & floor tiles. The company obtained the certificate of commencement of business on 20th January 1986. It was promoted by Shri Ashok Kumar Kajaria, his associate and Kajaria Exports Ltd. - The Company entered into a technical collaboration agreement with Todagres S.A., Spain for the manufacture of ceramic glazed wall & floor tiles. - The agreement provides for supply of technical know-how and manufacturing assistance necessary design, drawings, and specifications and also trains the company's personnel and provides technical assistance for the setting up of the plant. - The company undertook a project to set up a plant for the manufacture of 12,000 tpa of ceramic glazed wall/floor tiles in various shades. The plant is located on a plot of 17.5 acres acquired from UPSIDC at Sikandrabad Industrial Area in Bulandshahar district of U.P. main plant and machinery was supplied by Sacmi Imola and Omis Due SPA of Italy. - Three D.G. sets of a total capacity of 835 KVA were installed to meet contingent power requirement. - The company has an obligation to export 25% of the production for a period of 5 years from the date of commercial production. It was hopeful of meeting the export requirement with the help of the promoter company, Kajaria Exports, Ltd.

- The company received the necessary registration for the expansion of the installed capacity from 12,000 tpa to 26,000 tpa. 1987 - 700 shares subscribed for by the signatories to Memorandum of Association. 53, 32,700 shares then issued at par of which the following were reserved for allotment: - (i) 23, 32,700 shares to promoters, Indian resident directors, etc. (incl. 7, 50,000 shares to Kajaria Exports Ltd.): - (ii) 8, 00,000 shares on repatriation basis to NRIs and NRI Companies owned predominantly by NRIs. - Out of the remaining 22, 00,000 shares, the following were reserved for preferential allotment: - (i) 2,66,600 shares to worker, Indian working directors, workers of the Company and worker of the Kajaria Exports Ltd. (only 11,400 shares taken up) and - (ii) 5, 00,000 shares to NRIs on repatriation basis only 39,600 shares taken up). The balance 14, 33,400 shares, along with unsubscribed 17, 15,600 shares of preferential quotas, were offered to the public in September 1988. Additional 8, 00,000 shares allotted to retain over-subscription. - The company maintained an average capacity utilization of 120%. The company started exporting tiles to the Gulf countries, Europe and Bangladesh. New ranges of tiles were introduced in the market. Various new designs and prints were introduced in the market. - The expansion programme was on the verge of completion and production at the expanded capacity was expected to commence in June, 1990. - During August/September, the company offered 3, 22,000-14% secured fully convertible debentures of Rs. 100 each for cash at par. Out of these 3, 06,670 8

debentures of Rs. 100 each were offered on Rights basis to the existing shareholders in the prop. 5 debentures: 100 Equity shares (all were taken up). Simultaneously, 15,330 debentures of Rs. 100 each were offered to the worker and Indian working directors of the Company on an equitable basis (only 785 debentures were taken up). - Additional 31,455 debentures along with the unsubscribed portion of 14,545 debentures from workers quota were allotted at the discretion of the directors. - As per the terms of issue, part `A' of Rs. 40 of each debenture was converted at par into four equity shares of Rs. 10 each at the end of six months from the date of allotment of the debentures. Accordingly 14,13,820 shares were issued. The remaining part of Rs. 60 was converted into 3.53 number of equity shares of Rs. 10 each at a premium of Rs. 7 per share on 15th December, 1991. 1990 - A further expansion of installed capacity from 26,000 MT to 40,000 MT was being implemented. - 14, 13,820 shares allotted at par in conversion of debentures (Part `A'). 1991 - The company was awarded "CAPEXIL" special exports award for the year 1992 for being the largest exporter of ceramic tiles from the country. - The company proposed a further expansion of the installed capacity to 60,000 MT. - 12,47,696 shares allotted (prem. of Rs. 7 per share; prop. 1 debt: 3.53 shares) in conversion of deb. (Part `B'). 1993 - The company proposed a further expansion of the installed capacity to 1,30,000 MT with the support of technical collaborators M/s. Todagres SA of Spain. - During July, the company issued 21, 98,729 - zero interest unsecured fully convertible debentures of Rs. 70 each at par on Rights basis in the proportion of 1 debenture: 4 equity shares held. 9

- Another 5,49,671 - zero interest unsecured fully convertible debentures of Rs. 70 each at par were issued on preferential basis to promoters, directors and their friends, including group companies. - Each debenture of Rs. 70 will be converted into 2 equity shares of Rs. 10 each at a premium of Rs. 25 per share on expiry of 9 months from the date of allotment or on 1st April, 1994, whichever is earlier. 1998 - During the year the company successfully launched wall tiles manufactured with single firing technology which was well accepted in the market. - The company proposed to issue 2,00,000 - 14% Non-Convertible debentures of Rs. 100 each at par to financial institutions/Mutual funds on private placement basis. - 54, 96,800 No. of equity shares allotted on conversion of Zero Interest Unsecured fully convertible debentures. 2000 - 4, 25,000 No. of equity shares allotted to IFCI in terms of exercise of conversion option under loan agreement. 2005 -The Members approved the of Mr. Rishi Kajaria as Director on the Board and ratification of re-appointment of Mr D.D.Rishi in the capacity of Jt. Managing Director of the Company for a period of 5 years and voluntary delisting of equity shares from U P Stock Exchange Association Ltd., Delhi Stock Exchange Association Ltd. and Calcutta Stock Exchange Association Ltd. -Kajaria Ceramics Ltd has informed that the securities of the company have been delisted from the Delhi Stock Exchange Association Ltd w.e.f December 10, 2003. 2007 -Kajaria Ceramics Ltd has informed that consequent upon acquisition of R&TA Division of M/s Computech International Limited by M/s MCS Limited, the Registrar & Transfer Agent of the Company stands changed from M/s Computech International Ltd to M/s MCS Limited. The change of the same has been approved 10

by the Board of Directors in their meeting held on December 26, 2006. The address, telephone numbers etc of the new Registrar & Share Transfer Agent are as follows : M/s MCS Limited, W-40, Okhla Industrial Area, Phase-II, New Delhi 110020; Phone: 011-26384909, 910, 911; E-mail: mcsdel@vsnl.com. -Commenced the commercial production of its additional capacity of 2 million sq mtr per annum on February 27, 2007, with an investment of Rs.340 million at Gailpur Plant. With this expansion, the aggregate capacity of the company has become 14 million sq. mtr. per annum Over the coming years, we expect to explore organic and inorganic opportunities in pursuit of our goal to report an attractive turnover increase in every single year and our vision of reporting revenues of Rs 1000 crore by 2009-10. In Recognition of Export achievement in respect of Glazed Ceramic Tiles for the year 2010-2011.

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KAJARIA - VISION
Over the coming years, we expect to explore organic and inorganic opportunities in pursuit of our goal to report an attractive turnover increase in every single year and our vision of reporting revenues of Rs 1000 crore by 2009-10.

KAJARIA - MISSION
Kajaria ceramics mission is To be the worlds premier consumer Products Company focused on production of various types of tiles. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our worker, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. 1. 2. "To be the leader in the Ceramic tile industry." Marketing networks for ceramic tiles in the Middle East, South-East Asia, Africa, the European Union and America. 3. Manufacture and export of specialized tiles meeting strict international quality benchmarks;

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KAJARIA RISK MANAGEMENT

Capacity risk Kajaria is ramping up its ceramic tile manufacturing capacity to cater to the expected high demand from the housing and construction industry. While this is a positive step, there may be a pressure on selling prices initially but that can be mitigated by the savings arising from the economies of scale, through the proposed brown field expansion and the commissioning of bigger kilns, adequately protecting margins. We expect working capital requirements to increase in the initial phase of production, in view of the expansion.

Brand risk The ceramic tile industry is populated by a number of national and regional brand and small-scale players, affecting recall. The Company has cut the brand clutter through a regular launch of pioneering products, Establishing the largest retail chain in India's ceramic tile industry and organizing exhibitions across smaller towns and cities and through big advertisements in the print and electronic media. As an extension, the brand was conferred the 'Superbrand' status, the only brand in its industry to be so recognized. The Companys product also commands a premium over the competing brands.

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Technological risk
The emergence of a superior technology could render existing asset investments obsolete. The Company adopted the single firing technology at its plants, the most contemporary used by most reputed international ceramic tile giants. This technology is expected to remain relevant over the foreseeable future. The Company also adopted the new dry process technology at its manufacturing plant in Sikandrabad for floor tiles in the last expansion of 4.2 mn sq mtrs, thus eliminating the use of additional heat for drying, leading to fuel savings. A presence in the relevant dry and wet technologies represents an adequate de-risking.

Import risk
Off take could be affected by the entry of imported tile brands. By and large, the import of the mid and low ends is not likely to be viable as they are adequately matched in price by the local prevailing price. The import of the high-end variety could enhance the awareness for aesthetic products, helping grow the top-end market in India. The Company has tied up with leading Spanish and Italian manufacturers to cater to the demand for high-end products and also has tie ups with two of China's best and leading manufacturers for the import of vitrified tiles, providing a complete solution for all type and range of products.

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Receivable risks
A consistent supply of material without a corresponding collection system could affect debtors management and working capital efficiency. The Company has liquid, prominent and reputable dealers. The Company strengthened its business relationship with its dealers, enabling a faster cash turnaround. Its outstanding receivables, which are more than six months old, reduced from 11.07 percent in 2004-05 to 8.98 per cent in 2005-06; the overall debtors cycle had consistently improved, from an average of 64 days of turnover in 2003-04 to 56 days of turnover in 2004-05 to an average of 48 days of turnover in 2005-06.

KAJARIA STRATEGIC INTENT

We intend to significantly accelerate profitable growth. To do this, we will: Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology Be the preferred company to meet the personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of technology. Provide our consumers with innovative products within easy reach Build a platform to enable Kajaria to become a global ceramic tile leader Be a professionally managed employer of choice, attracting, developing and retaining quality personnel Be responsible citizens with a commitment to environmental protection 15

Provide superior returns, relative to our peer group, to our shareholders

KAJARIA PROFILE

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Profile
Kajaria Ceramics Limited, FMCG with a turnover of Rs.250 crores manufacturing and selling ceramic Floor & Wall Tiles under the brand name "Kajaria". It is the first title company in India accredited with ISO 9002 Certification and recipient of one of the Global Growth company award from the "World Economics Forum". The company has its corporate office at New Delhi and Regional offices at Ahmadabad, Banglore, Calcutta, Mumbai and Chennai.Today kajaria is a well established name in the corporate world. From a modest beginning of 3,000 sq.mts.per day, the company today produces over 33,000 sq.mts. Of tiles every day, clearly demonstrating Kajaria's growing strength over the years and also indicating rising customer preference for the brand. Manufacturing, standards, technology user trends, competitiveness, customer preference all have played a vital role in shaping Kajaria success story. Besides this, the company enjoys a reputation of rendering products that's at par with international standards. Within 11 years of operation, Kajaria has moved very close to its vision of becoming a leader worldwide. Kajaria Ceramics has grown at a breathtaking pace during the last decade in turnover, profits and foreign earnings. With the new plant at Bhiwadi, Rajasthan becoming fully operational, it has almost doubled its capacity from 80,000 TPA 1, 50,000 TPA. The first plant in secunderabad U.P. already has the distinction of always producing over 100% of its capacity.The company's dedicated Research and Development efforts have also proved to be catalytic in its leadership position. These include development of special effects floor tiles and development of FLOOR BORDERS matching PEI_V Tiles having high abrasive resistance. In house R & D has also enable Kajaria to imbibe innovations and technical methods of production based on

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Monoporosa Technology. Kajaria has always been alert to changing market trends and preferences, by producing tiles in myriad designs and colors. Infect Kajaria is the only tile company in the country to have an impressive range of over 400 designs with a many as 50 different variation in Group 5 category, demonstrating out with architects, Builders, masons and interior update their products information and brands, designs, and colors. and regular commitment towards customer satisfaction. Kajaria also continued to improve its communication process decorators and designers in order to

provide them convenient access to its diverse

Using the effective technique of sampling with frequent

communication through pamphlets, products folders and catalogues helped to keep the Kajaria brand on the top_of_mind scale among the priority target customers. In additional, the company emphasis on participating in national and local exhibitions also enabled it to enhance its visibility and reach on a continuous basis, throughout the year. This also helped to inspire and influence product usage at a more rapid pace.Kajaria's dominating presence in the country has been further consolidated by a uniquely engineered network of dealers. These highly visible retail outlets have sprung up not only in all major cities and towns but even in the most strategic market locations. A huge force of sub dealers cover and breadth of the country. The tremendous advantage from this marketing strength has been the easy access to and availability of Kajaria's entire of the customers. In addition, the vast range and choice enables customers to select their own designs and create their own individual combinations in exclusive preferences and tastes.With the tremendous spurt taking place in the realm of information technology, Kajaria is reaping the benefits from the new medium, by hosting its own website on the internet. The Kajaria website provides wealth of information on its entire range of wall and floor tiles, borders including detailed information on the various specifications. Exquisitely designed, the website contains the full 18

range of visually appealing graphics on designs, colors and size. With access to this facility, customers can avail the tremendous benefits of e-commerce of Kajaria tiles ,and even place their orders for quick delivery.

MAJOR PRINCIPLES
OWNERSHIP
This is our company. We accept personal responsibility, and accountability to meet business needs.

PASSION FOR WINNING

We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most.

PEOPLE DEVELOPMENT
People are our most important asset. We add value through result driven training, and
we encourage & reward excellence.

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CONSUMER FOCUS
We have superior understanding of consumer needs and develop products to fulfill them better.

TEAM WORK
We work together on the principle of mutual trust & transparency in a boundaryless organization. We are intellectually honest in advocating proposals, including recognizing risks.

INNOVATION
Continuous innovation in products & processes is the basis of our success.

WHAT MAKE KAJARIA SUPERBRAND

PRODUCTS: Kajaria ceramics is a tile manufacturing and marketing company. It services consumer needs across small medium and large format ceramic and vitrified categories in India and abroad. PRIDE:Kajaria ceramics is the only brand of ceramic tiles in India to be conffered the SUPERBRAND status. PLANTS:The companies plants processed a cumulative manufacturing capacity of 18 mn sq. meters per annum across two plants- sikandrabad U.P.(Capacity 9.70 mn sq. meters )and gailpur Rajasthan (capacity 8.30 mn sq. meters)-as on march 31,2006.This is being increased to 26.4 mn sq. meters by September 2006.The company was the first to receive the ISO 9001 (for quality management) ; it has also received the EMS14001(for environment 20

management) & OHSAS 18001( for safety and health management) certifications across its plants. PRESENCE: The company enjoys the largest share in north India, one of the fastest growing region today.Its distribution network comprises a complement of about 600 dealers ,exclusive kajaria plus showrooms & a kajaria world showroom. The company is indias largest ceramic tile exporter ,shipping products to more than 20 countries through a specialist export division as well as a network of international agents & distributors. PARENTAGE: Kajaria ceramics (commenced operations in 1988) was promoted by Mr. Ashok kajaria & kajaria exports limited (group company) in technical collaboration with Todagers, s.a., spain. POTENTIAL: Kajaria ceramics market capitalization was Rs.3245.10 mn (as on March 31,2006 on the Mumbai stock exchange).

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KAJARIA- DISTRIBUTION NETWORK

Kajaria has exclusive showrooms dotted across the country that cater to the needs of the consumers. These exclusive showrooms provide information and demonstration to architects and interior designers as well.Designed for an international shopping experience, the showrooms are equipped with state-ofthe-art designs and concepts. The showrooms provide elaborate product display and offer pre and post sales support to help customers decide on the right colour, size, design and quantity

The Company is also opening a chain of showrooms branded as Kajaria World, with the first one already operational at Gurgaon, to showcase the most exclusive imported tiles imported from Spain, Italy and China in India.

Breathtakingly beautiful in ideas and creativity, Kajaria World showroom showcases the most beautiful and elegant Italian and Spanish tiles. With various sizes, shades and designs, these displays mock up bathrooms and concepts so that the consumers can lay their hands on the beautiful display. Backed by Kajaria service and efficiency for fast delivery and other conveniences, this franchise of Kajaria World is a one-stop-shop-solution for those scouting for freshness and creativity on Wall and Floor designs for both domestic and commercial purpose. Finally, I would offer my humble Thanks to all our customers for their continuous loyalty, support and faith in us.

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KAJARIA WORLD SHOWROOMS KAJARIA PLUS made its humble beginning in June 1999 by opening its first showroom at Jaipur. The response was very encouraging. We increased our presence by opening one more showroom in Noida in the same year. With the advent of the new millennium, we have successfully inaugurated twenty nine more showrooms at Ajmer, Amritsar, Agra, Aurangabad, Two in Bangalore, Bhilwara, Bikaner, Bilaspur, Coimbator, Goa, Gurdaspur, Haldia, Haldwani, Hubli, Hyderabad, Jodhpur, Kanpur, Kolkatta, Mathura, Mangalore, Nagpur, Raipur, Satna, Udaipur, Varanasi, Vijayawada, Vishkhapatnam & one more in Jaipur. KAJARIA PLUS has an ambitious plan to increase its reach further in metro & non metro towns by March 2007 and become a name to reckon with for providing exquisite bathroom, kitchen and living room concepts. I would like to extend my gratitude to the Company's management, staff, distributors and all the associated without whose dedicated contribution our success would have been incomplete.Finally, I would offer my humble

SOCIAL AND COMMUNITY WELFARE In discharge of its Corporate Social Responsibility, the Company continued to undertake several social and Community welfare activities. The major activities undertaken were: - Contribution to the Chief Minister's Relief Fund in Rajasthan. - Contribution made to the local village for religious, polio operation and education activities. - Contribution to various clubs/associations for organizing sports meets and medical camps. - Contribution made under District Primary Education Program for midday meal, uniforms and dari patties for children of various schools.

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TOPIC DESCRIPTION
There are successful managers and unsuccessful managers. Some managers can be in tune with their workers and manage in a way that produces trust, good relationships and family-like values. Other managers fail in their responsibilities as leaders and misdirect the human resources they seek to serve. The managerworker relationship significantly impacts the dynamics of the organization. The impact can be exhibited in signs of an organization wasting away (negative self image), lack of motivation, lack of resources or mismanagement, communication between individuals is down or nonexistent. Or, the impact can be exhibited as an organization on the move. The good news is that the movement is upward. People want to work together, motivation is high and getting higher, things just seem to click and negative circumstances are merely a bump in the road. Of which organization would you want to be a part? The manager relationship with workers should defiantly NOT be sexual or of any harassment. The manager should have a professional relationship with the workers. The manager should respect the workers and inturn expect respect from the workers. The manager and workers should be loyal to each other and be able to communicate information without feeling scared or intimidated. The manager and worker relation should be one that effectively completes the job with the least amount of conflicts. If there is any sort of relationship issue between the manager and the workers then it should be solved as quickly as possible. If the relationship issue cannot be solved, the worker must quit or to try and replace the manager. Like every other relationship, the relationship between any manager and any worker has ever since been complex and not easy. It is, amongst other things, affected by jealousy and resentment in terms of salary, responsibility or knowledge and is based on the so-called psychological contract which deals with implicit reciprocal promises and obligations. As soon as people sign a labour contract, they also sign a psychological, an unwritten contract which 24

mainly contains assumptions and beliefs of the two parties (employer and workers) (Rousseau: 1995). This mental model provides a stable understanding of what to expect in the future and guides efficient action without much need for practice. Additional to the differing assumptions and beliefs, goals, commitment, satisfaction and objectives of the two parties vary incredibly. But what are the main reasons that make this relationship so unstable? This work deals with the evaluation of the cause of the inconsistent relation between managers and workers; and concludes with a short review. The Manager-Worker Relationship as an unstable Entity The already mentioned potentially unstable relationship between managers and workers is getting caused by different reasons. One theory that deals with this relationship is the so-called Principal-Agent-Theory. The main focus of this theory lies on the different amount of information each party has; which may lead to a constantly unstable relationship. Nevertheless, there are more approaches and cause studies which try to identify the reasons for the instability of that kind of relationship. The principal-agent-theory, which has been introduced formally in the 1970s, deals with the contract type of instruction, more precisely it covers the division of labour within the manager (principal) - worker (agent) - relationship and points out characteristics appearing between any principal and any agent. The problem, which will be explain in the following, inevitably appears when any kind of principal hires an agent (Wang et al.: 2010). The relationship between a manager and worker is partly governed by each others behaviour and starts as soon as the psychological contract has been signed (Riley: 1996). Assuming that every manager and every worker has got different assumptions and ideas about the work content, the individuals aims and companys aims make it hard to build up a stable relationship.

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Facts on the Relationship Between Workers & Manager The relationship between workers and employer is sometimes fragile. The worker may feel pressured to keep his job while harboring unfavorable opinions about his boss, while the boss wonders if the workers is working to the best of his ability. Employers are also concerned about the morale of workers, because low morale could lead to expensive issues with turnover or low productivity. Considerations While many companies employ workers without formal agreements, others have employment-at-will contracts with the workers. The company can terminate the workers for almost any reason, as long as the firm does not make its firing decision based on discrimination or whistle-blowing. This arrangement is sometimes a source of conflict between workers and manager, because the workers is afraid of losing his job. Expert Insight Recessionary times can negatively affect the relationship between workers and employer. An workers may start to distrust the company more and fear losing his job because of hard financial times. Downturns in the economy actually might be an opportunity for managers to build workers loyalty to the company. Authors Stephen A. Miles and Nathan Bennett, in a "Bloomberg BusinessWeek" article, state that "employers find themselves more frequently asking workers to trust the companyassuring workers that better days are ahead and their efforts today will not be forgotten tomorrow." Concerns If an employer disregards the concerns of workers, that could lead to a number of important and sometimes expensive problems. Besides turnover, workplace violence is also a risk to the business if workers become disgruntled. Workers who feel slighted by managers may also compromise the security of the company's proprietary information by either sharing trade secrets or taking that valuable knowledge to another competing business. A company that doesn't

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foster a productive relationship between workers and managers also may develop a poor reputation in the industry. Perspective According to leadership consultant Stephen A. Miles, it's helpful to look at the employer-workers relationship as a series of promises. For instance, employers promise money and job support, while an workers promises to perform her job to the best of her ability. Solutions Employers can take steps toward improving the workers and manager relationship to facilitate a highly productive and happy workplace. For one, managers can implement workers recognition or reward programs to thank workers for a job well done. Meetings and regular communications between workers and managers are also important, especially if workers feel disconnected from the management of the company. Communicate Effectively with Workers Communication management solutions from Profiles International help managers learn to communicate with workers increasing morale and productivity. A manager can significantly impact workforce development and workers performance. Whether the impact is positive or negative is often the direct result of communication management and their understanding of each other's work habits and style. Managers who are "out of touch" with their workers often cause low productivity, dwindling morale, and high workers turnover. On the other hand, workers who feel a connection to their manager are often highly productive and engaged in their work. Having a greater understanding of the dynamics of their working relationship will help both parties appreciate where their perspectives are similar and where they differ. This mutual understanding will result in a more productive and positive working relationship.

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Manager-Workers communication is critical to drive performance The faster a manager can understand an workers, the more effective they can be in managing and coaching. Profiles Internationals communication management tools offer insight for managers to quickly understand the strengths and core characteristics of their workers. Our solution arms managers with a custom user guide for every workers, providing knowledge about how they fit with their job and how managers can effectively work with workers and create positive team dynamics. This information results in concrete suggestions on how to manage workers to achieve the best performance. Managers have a dynamic workforce. New workers are frequently added to the team, some are even based in other locations. Today, many organizations use communication management tools to help them develop a highly productive, fully engaged workforce regardless of their location or tenure with the company. By measuring workers attitudes, motivations, and outlook on their employers, current managers, and job functions, organizations can gain a vital perspective on the reality in their company and pinpoint areas of concern affecting the total workplace experience. Profiles communication management tools give insight into your workers' opinions about human resource issues, the role work plays in their lives, their job-related needs and preferences, and what motivates them in the workplace. Workers are the major assets of an organization. It is essential that the workers perform together as a collective unit and contribute equally towards the realization of a common goal. No task can be accomplished if the individuals are engaged in constant conflicts and misunderstandings. It has been observed that targets are achieved at a much faster rate if the workers work together and share a warm relationship with each other. Workers must be comfortable with each other to deliver their best and enjoy their work. What is workers relationship management ? Workers relationship management refers to managing the relation between the various workers in an organization. The relationship can be between workers and the 28

employer as well as between workers at the same level.

What is Management ? Management is nothing but a technique which brings people together on a common platform and guides them so that they achieve their desired targets without fighting with each other. In a laymans language, management is nothing but managing things effectively so that tasks are accomplished without any hassles and confusions. Management is required everywhere. Every individual goes for shopping. The moment you enter in an outlet, a sales person would come to you and assist you in your shopping. He would try his level best to convince you and guide you in selecting an outfit according to your taste as well as budget. The moment you finalize something, you automatically would be directed to the billing section for the monetary transactions. Your shopping basket in no time would reach the packing area where the officials would nicely put the outfits in a smart carry bag flaunting the logo of the store. Finally there would be a supervisor who would recheck your bill and thank you for your valuable time. How do you think such a smooth coordination is possible? Not a single moment, there was any confusion. All this is possible through management. Every thing was well managed and organized effectively to avoid confusions and meet the ultimate objective of the store ie selling the product as well as making the customer happy. Workers relationship management is an art which effectively monitors and manages the relation between individuals either of the same team or from different teams. Workers relationship management activity helps in strengthening the bond among the workers and ensures that each one is contented and enjoys a healthy relation with each other.

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Workers relationship management includes various activities undertaken by the superiors or the management to develop a healthy relation among the workers and extract the best out of each team member. Let us go through certain activities which are imperative for a healthy workers relationship management:

Transparency in communication is of utmost importance for a healthy workers relationship management. A single point of contact must be assigned who should be made responsible for handling queries of all the team members and escalating it to the seniors. Confusions are bound to arise if all of them would walk up to their superiors with their problems. Let the team members decide their SPOC. In such cases workers actually know who to get in touch with in case of a query and in the absence of their superiors. The hierarchy should not be too complicated and every workers should be accessible to each other. Important information must be passed on in the presence of all, where everyone has the liberty to express his opinions freely. Important information can also be put on the notice boards for everyone to read and get a common picture. If any one has performed exceptionally well, do display his name on the bulletin board. Let everyone read it and get inspired to perform better next time. Encourage morning meetings where individuals can come together and know each other well. Exchanging information through emails is also an important way to improve the relation among the workers as everyone knows what is being communicated to the other individual.

Encourage group activities at the workplace. Motivate individuals to work together probably in a group so that the comfort level increases. The more they talk, the more they get to know each other. Give them a target, a deadline and ask them to take each others help and reach to a conclusion. They would definitely come closer this way and start trusting each other more. 30

An individual spends the maximum time at his workplace and one should treat his team members as a part of ones extended family. It is important to celebrate festivals at organization, the same way we do at our homes. Celebrate each others birthday and do ask for treats. Such informal get togethers go a long way in improving the relation among the workers. Individuals come together, enjoy together and come to know lot many things which actually they dont bother to find out during the normal working hours. Families must also be invited for a better bonding. The team leaders must ask their team members to take their lunch together so that they discuss other things apart from their daily work.

Assign challenging work to your team members so that they feel motivated to deliver their level best. Do not assign something which they do not find interesting. The responsibilities must be divided equally among the team members and no workers should be overburdened. Every workers should be aware of his key responsibility areas to avoid confusions. No way should the work get monotonous.

The concept of workstations and cubicles must be promoted rather than closed cabins. People sitting in closed cabins tend to get cut off from rest of the workers in the organization and are generally lost in their own sweet world. They would enter their cabins in the morning and come out in the evening and thus sometimes even dont get the opportunity to exchange greetings with their fellow workers. People sitting in workstations tend to talk to each other more often even in between work and thus relationship improves. One can even walk up to the others desk to have a brief chit chat in order to take a small break and feel relaxed. Workers sitting together discuss many things and even share their secrets, thus the trust increases. It is commonly observed that if any of your colleagues sitting next to you is on leave for some days, you start missing him. 31

The workers must be motivated to avoid politics and blame games at work. Such activities are considered highly unproductive and spoil the relationship among the workers. Backbiting is a strict no no at the workplace. Avoid getting into unnecessary controversies and useless criticism at work. Respect your team members as well as your superiors. It is important that one trusts his management rather than unnecessarily cribbing and finding faults. Avoid conflicts and try to adjust with each other. It is okay to be friends with your colleagues but dont have unrealistic expectations from anyone. Last but not the least the superiors or the team leaders must not act pricy and try to dominate their team members. The Hitler approach does not work now a days. No one should be afraid of his boss, instead treat him as his well-wisher and mentor who is always there to support him. The workers must be able to fall back on their team leader anytime. The team leader must understand the needs and expectations of his workers and should not be too harsh to them. If they want a leave for a genuine reason, do grant them. Dont be after their life if you find them chatting with their family or friends over the phone once in a while or log on to any social networking site. These things are natural but make sure the work does not suffer.

Partialities must be avoided for a better workers relationship. Treat everyone as one and every individual must respect each others privacy. There is a limit to everything and thus over indulgence in each others work, too much of a friendly nature should be avoided.

For a better workers relationship management, it is important that workers have a positive frame of mind and dont always consider their colleagues as their enemies. Dont always assume that your fellow team member would say something against you in front of your boss. Avoid disputes, misunderstandings, instead work together, enjoy together and make the organization a better place to work. 32

The Manager and worker relationship can be complex, with no quick and easy formulae to use which will provide an instant solution. When gathering information from the parties in regards to their work relationship, the inspector/health and safety officer must keep in mind that the many "tests" are not tests in and of themselves, but rather conditions outlined in jurisprudence. They may be given more or less weight in a particular case to determine if a worker is simply part of the payer's business or in business on his or her own account. In the Sagaz Case, the Supreme Court of Canada outlined some of the conditions to determine if a worker is an workers or an independent contractor. In the decision, the Supreme Court of Canada makes the following point that one must search for the total relationship of the parties: Workers and employer relation is a term that refers to relationship development and management between employers and their workers. There are a lot of different issues that can affect workers satisfaction, which has a direct result on workers productivity and overall corporate culture. Workers and employer relation can be driven by using workers surveys to directly engage your workers in the issues that are most important to them.People in organizations interact with each other during work, formally and officially as well as socially and informally. During the course of interaction, relationships develop, which are invisible connecting links, coloured by emotions of love, hate, repulsion, respect, fear, anxiety and so on. These are usually mutual but not necessarily reciprocal. If A hates B, it does not follow that B hates A. It is possible that B loves A and even sympathizes with his thoughts. Relationships imply feelings for each other. They may be positive (friendly, wanting to be close) or negative (unfriendly, wanting to be distant). Relationships always exist between interacting persons. There is no neutral point. Indifference is not neutral. Indifference tends to be negative. Relationships influence behaviours at work. Expectations of each other, perceptions of the intentions of either, distributions of assignments, readiness to conform or to rebel, enthusiasm to contribute, etc., are to some extent outcomes of these relationships. Attitudes and motivations influence, and are influenced by, the nature of these relationships. Workers are among an 33

organizations most important audiences with the potential to be its most effective ambassadors. Workers Relations are practices or initiatives for ensuring that Workers are happy and are productive. Workers Relations offers assistance in a variety of ways including workers recognition, policy development and interpretation, and all types of problem solving and dispute resolution. Once there was a time when Workers Relations meant labor relations everywhere around the world. Negotiate. Orchestrate. Dictate. HR professionals helped negotiate collective bargaining agreements. The provisions of that contract defined the relationship between management, unions, and workers. Today, Workers Relations is a much broader concept. It involves maintaining a work environment that satisfies the needs of individual workers and management. Improving workers morale, building company culture, conveying expectations. An effective workers relation involves creating and cultivating a motivated and productive workforce. People are generally motivated from within, but what can you do to help foster the type of environment where workers thrive, enabling your company to outperform the competition Workers Relations starts with determining the type of workplace the company wants. It starts by considering what the company wants its workers to say about working for the company. In a competitive market, it is important to that workers dont feel that they might be treated more fairly elsewhere. After all relation is one of the major functions of HRM. By considering what the company wants workers to say about working for it gives shape to the companys culture. The company culture conveys organizations core values to its workers, customers, vendors, and community. In addition to the workplace climate, the company also considers the types of processes or systems it wants to employ within the workplace to support the company culture and enhance the working relationship that exists between the company and its workforce. Such systems could include communications, policies, training, and development. Also, an essential step in building effective Workers Relations is to evaluate the human, financial and other resources available that reinforce the values and guiding principles the company wants echoed throughout the organization. For example, what type of supervisors and managers does it believe can bring out the best in people and projects? The company should also make certain from the start that 34

workers are not in counter productive work environments where work is more arduous than it needs to be. Is the workplace compliant with employment law? A major source of frustration for workers is the feeling that they were treated unfairly. Good liability management tools are necessary to ensure that the company avoids unnecessary confrontations, time wasters and costly legal battles Traditionally Workers Relations programs were centered around labor union relations. Today, Workers Relations does not necessarily involve unions. However, it does involve cultivating the leadership style and workplace practices that help make union organizing activities a less attractive option for workers. Establishing workplace and management principles set the stage for fostering a successful work climate and establishing your companys culture. Effective Workers Relations is about establishing processes that address and nurture that culture. Workers in such organizations develop attitudes very different from those in another organization that does not make any such distinction and is more secular in its policies. These different attitudes will be reflected in their behaviors outside the organization and will either strengthen or weaken the social fabric. An organisation in which authority is highly centralized and does not allow its people enough discretion, will develop among its people tendencies for dependency and inability to take responsibility. These tendencies are handicaps in their roles as parents or citizens. The extent of concern shown for the effect of working conditions on workers health has an impact on the society, not merely in terms of general health and costs on medical care, but also in terms of the kind of activities that the members of the society participate in. When an organisation is sensitive to its impact on society, and responds to the societys concerns, it is said to be socially responsive. On the contrary, if it is concerned only with its own purposes and ignores the impact that it has on society, it is said to be socially not responsive Relationships also contribute to stress and conflicts at work, which in turn, affect quality of work life of individuals as well as the quality of organizational outputs, measured in terms of customer satisfaction, competitive advantage, innovation, and so on.Some of the core issues that can be controlled with effective Workers and employer relation are:

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1. Communication Open communication both amongst your workers and between the workers and the management team is imperative. When workers feel that they cant be heard, they may become frustrated, leading to lowered workers morale. Lowered morale can result in lowered productivity and an uncomfortable, or even hostile, work environment. Workers surveys can give you a thorough understanding of how your workers feel about communication in your work environment.

2. Conflict management When problems arise, it is important to understand how to handle them. This is a fundamental aspect of Workers and employer relation. Sometimes those conflicts occur between workers and employers. Workersurveys.com can provide you the necessary tools to help you negotiate and manage conflicts in your business.

3. Workers growth Workers that feel they are only required to put in their hours and go home will do just that. Workers that feel they can become a valuable asset based on their work, as well as their ability to provide important ideas, offer input, and perhaps pursue growth opportunities within the company, will create a positive atmosphere within the corporate culture.

4. Focusing on Workers and employer relation can have profound effects on how your business operates. Conducting workers surveys is a useful tool towards reaching a beneficial level of Workers and employer relation because they provide an opportunity for candid feedback and analysis that isnt achievable in typical business communication.

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What is a contract of service and a contract for service? In attempting to sort out the question of workers or independent contractor, the inspector/health and safety officer shall first examine what defines employment. The general principles of contract law govern the formation of the contract of employment. A contract of employment is a contract by which a person, the workers, undertakes for a limited or indeterminate period of time to do work for remuneration according to the instructions and under the direction or control of another person, the employer. Within the framework of a contract of employment, a person carries out the service of work, receives remuneration and the work is carried out according to the direction and control of the employer. The terms of the contract may be either in writing or given orally, but both are equally binding and enforceable. When a person is hired to be an workers, the person enters into a contract of service, which is an employer/workers relationship. Another type of contract between two parties is that of an independent contractor or acontract for service. This type of contract may be defined as a contract by which a person, contractor or service provider makes a commitment to another person, the client, to carry out material or intellectual work or to provide a service for a price or fee. The characteristics of a contract for service are that the contractor is free to choose the means of performing the contract and no relationship of subordination exists between the contractor or the provider of services and the client in respect of such performance. In order to be able to determine the existence of an employment relationship, the inspector/health and safety officer shall review the nature of the contract that binds both parties.

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Importance of workers status

Over the past two decades the emergence of "own-account" self-employment such as freelancers, consultants and independent contractors, has become more prevalent in the workplace. This has been due to a range of factors such as the globalization of trade, the introduction of new technologies, the volatility of international and domestic markets, and the workers' desire for autonomy and independence. Due to these economic and social reasons, the boundary between independent contractor and paid employment is blurring. There is a need to differentiate if a worker is categorized as an workers or as an independent contractor. Workers in the federal jurisdiction labour relations system are given numerous protections under labour standards and health and safety legislations. Independent contractors are not workers and thus do not enjoy the protection of these statutes. The inspector/health and safety officer shall review the nature of the relationship to determine if an employer/workers relationship exists in order for Part IIand Part III of the Canada Labour Code to apply to the person as an workers. All statutes have particular policy goals, so it is possible that a worker may be held to be an "workers" for one law, but not for another. The Supreme Court of Canada made it clear that courts and tribunals must take into account the particular policy objectives of the statute when deciding if a person has workers status1. Therefore the Labour Program's investigative process must reflect the policy goals of the Canada Labour Code. The policy objectives of the Canada Labour Code are to ensure minimum employment standards; and to prevent accidents and injuries to health arising out of the course of employment within Federal Jurisdiction. [1] Pointe-Claire (City) v. Quebec (Labour Court), [1997] 1 S.C.R. 1015 Returnto linked annotation note 1

38

Common Law tests in determining an employment relationship The definition of "workers" and "employer" contained in the specific statutes is not usually helpful in determining an Manager and worker relationship between two parties. So when disputes arise as to whether a person is an workers under a certain statute, courts and tribunals have resorted to the common law and civil law tests to determine workers status. In order to be able to make a determination on the issue of employer/workers relationship, the inspector/health and safety officer shall read and analyze the cases referenced in this document, in order to understand the legal principles and observe how the judge or arbitrator identifies the salient points of each case, as well as be able to scrutinize how each factor of the working relationship between a payer and a worker was weighed. The following "tests" are only pieces of evidence that shall be weighed, at times differently, depending on the situation, to determine whether a worker is part of the payer's business or in business on his own account (Refer to Appendix for a listing of all the cases cited. The full text of the document is available at the address provided in the appendix).

What is Workers Relations ?

Every individual shares a certain relationship with his colleagues at the workplace. The relation workers, between an workers and his superior, between two members in the management and so

either warm, so-so or bad. The relationship can be between any one in the organization - betw

important that the workers share a healthy relationship with each other to deliver their best performa 5. An individual spends his maximum time at the workplace and his fellow workers are the ones with whom he spends the maximum hours in a day. No way can he afford to fight with his colleagues. Conflicts and misunderstandings only add to tensions and in turn decrease the productivity of the individual. One needs to discuss so many things at work and needs the

39

advice and suggestions of all to reach to a solution which would benefit the individual as well as the organization. 6. No individual can work alone. He needs the support and guidance of his fellow workers to come out with a brilliant idea and deliver his level best. 7. Workers relations refer to the relationship shared among the workers in an organization. The workers must be comfortable with each other for a healthy environment at work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team and encourage a healthy relationship among workers. 8. Life is really short and it is important that one enjoys each and every moment of it.Remember in an organization you are paid for your hard work and not for cribbing or fighting with each other. Dont assume that the person sitting next to you is your enemy or will do any harm to you. Who says you cant make friends at work, infact one can make the best of friends in the office. There is so much more to life than fighting with each other. Observation says that a healthy relation among the workers goes a long way in motivating the workers and increasing their confidence and morale. One starts enjoying his office and does not take his work as a burden. He feels charged and fresh the whole day and takes each day at work as a new challenge. If you have a good relation with your team members you feel going to office daily. Go out with your team members for a get together once in a while or have your lunch together. These activities help in strengthening the bond among the workers and improve the relations among them. 9. An workers must try his level best to adjust with each other and compromise to his best extent possible. If you do not agree to any of your fellow workers ideas, there are several other ways to convince him. Sit with him and probably discuss with him where he is going wrong and needs a correction. This way he would definitely look up to you for your advice and guidance in future. He would trust you and would definitely come to your help whenever 40

you need him. One should never spoil his relations with his colleagues because you never know when you need the other person. Avoid using foul words or derogatory sentences against anyone. Dont depend on lose talk in office as it spoils the ambience of the place and also the relation among the workers. Blame games are a strict no no in office. 10. One needs to enter his office with a positive frame of mind and should not unnecessarily make issues out of small things. It is natural that every human being can not think the way you think, or behave the way you behave. If you also behave in the similar way the other person is behaving, there is hardly any difference between you and him. Counsel the other person and correct him wherever he is wrong. 11. It is of utmost importance that workers behave with each other in a cultured way, respect each other and learn to trust each other. An individual however hardworking he is, cannot do wonders alone. It is essential that all the workers share a cordial relation with each other, understand each others needs and expectations and work together to accomplish the goals and targets of the organization. Every individual goes for shopping. The moment you enter in an outlet, a sales person would come to you and assist you in your shopping. He would try his level best to convince you and guide you in selecting an outfit according to your taste as well as budget. The moment you finalize something, you automatically would be directed to the billing section for the monetary transactions. Your shopping basket in no time would reach the packing area where the officials would nicely put the outfits in a smart carry bag flaunting the logo of the store. Finally there would be a supervisor who would recheck your bill and thank you for your valuable time. How do you think such a smooth coordination is possible? Not a single moment, there was any confusion. All this is possible through management. Every thing was well managed and organized effectively to avoid confusions and meet the ultimate objective of the store ie selling the product as well as making the customer happy. 41

Workers relationship management is an art which effectively monitors and manages the relation between individuals either of the same team or from different teams. Workers relationship management activity helps in strengthening the bond among the workers and ensures that each one is contented and enjoys a healthy relation with each other. Workers relationship management includes various activities undertaken by the superiors or the management to develop a healthy relation among the workers and extract the best out of each team member.

Let us go through certain activities which are imperative for a healthy workers relationship management:

Transparency in communication is of utmost importance for a healthy workers relationship management. A single point of contact must be assigned who should be made responsible for handling queries of all the team members and escalating it to the seniors. Confusions are bound to arise if all of them would walk up to their superiors with their problems. Let the team members decide their SPOC. In such cases workers actually know who to get in touch with in case of a query and in the absence of their superiors. The hierarchy should not be too complicated and every workers should be accessible to each other. Important information must be passed on in the presence of all, where everyone has the liberty to express his opinions freely. Important information can also be put on the notice boards for everyone to read and get a common picture. If any one has performed exceptionally well, do display his name on the bulletin board. Let everyone read it and get inspired to perform better next time. Encourage morning meetings where individuals can come together and know each other well. Exchanging information through emails is also an important way to improve the relation among

42

the workers as everyone knows what is being communicated to the other individual.

Encourage group activities at the workplace. Motivate individuals to work together probably in a group so that the comfort level increases. The more they talk, the more they get to know each other. Give them a target, a deadline and ask them to take each others help and reach to a conclusion. They would definitely come closer this way and start trusting each other more. An individual spends the maximum time at his workplace and one should treat his team members as a part of ones extended family. It is important to celebrate festivals at organization, the same way we do at our homes. Celebrate each others birthday and do ask for treats. Such informal get togethers go a long way in improving the relation among the workers. Individuals come together, enjoy together and come to know lot many things which actually they dont bother to find out during the normal working hours. Families must also be invited for a better bonding. The team leaders must ask their team members to take their lunch together so that they discuss other things apart from their daily work.

Assign challenging work to your team members so that they feel motivated to deliver their level best. Do not assign something which they do not find interesting. The responsibilities must be divided equally among the team members and no workers should be overburdened. Every workers should be aware of his key responsibility areas to avoid confusions. No way should the work get monotonous.

The concept of workstations and cubicles must be promoted rather than closed cabins. People sitting in closed cabins tend to get cut off from rest of the workers in the organization and are generally lost in their own sweet world. They would enter their cabins in the morning and come out in the evening and thus sometimes even dont get the opportunity to exchange greetings with their fellow workers. People sitting in 43

workstations tend to talk to each other more often even in between work and thus relationship improves. One can even walk up to the others desk to have a brief chit chat in order to take a small break and feel relaxed. Workers sitting together discuss many things and even share their secrets, thus the trust increases. It is commonly observed that if any of your colleagues sitting next to you is on leave for some days, you start missing him.

The workers must be motivated to avoid politics and blame games at work. Such activities are considered highly unproductive and spoil the relationship among the workers. Backbiting is a strict no no at the workplace. Avoid getting into unnecessary controversies and useless criticism at work. Respect your team members as well as your superiors. It is important that one trusts his management rather than unnecessarily cribbing and finding faults. Avoid conflicts and try to adjust with each other. It is okay to be friends with your colleagues but dont have unrealistic expectations from anyone. Last but not the least the superiors or the team leaders must not act pricy and try to dominate their team members. The Hitler approach does not work now a days. No one should be afraid of his boss, instead treat him as his well-wisher and mentor who is always there to support him. The workers must be able to fall back on their team leader anytime. The team leader must understand the needs and expectations of his workers and should not be too harsh to them. If they want a leave for a genuine reason, do grant them. Dont be after their life if you find them chatting with their family or friends over the phone once in a while or log on to any social networking site. These things are natural but make sure the work does not suffer.

Partialities must be avoided for a better workers relationship. Treat everyone as one and every individual must respect each others privacy.

44

There is a limit to everything and thus over indulgence in each others work, too much of a friendly nature should be avoided.

45

RESEARCH METHODOLOGY

4.1 Title of The Study: MANAGER WORKER RELATION IN KAJARIA CERAMICS LTD.

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4.2 Objective of Study To find out the satisfaction of worker regarding wages and salary. To find out the satisfaction of worker regarding pay. To find out the satisfaction of worker regarding environment. To find out the satisfaction of worker regarding welfare facilities in the organization.

4.3 Type of Research Exploratory Research Conclusive Research

Exploratory Research seeks to discover new relationships. It is investigative in nature. For example, the problem may be to find out why the sale of a product is poor or why a particular group of customers likes or dislikes the product. Exploratory Research may be conducted by: Study of secondary data. Survey of knowledgeable persons. Analysis of selected cases.

Conclusive Research is designed to help executives choose from among the possible courses of action that is, to make decisions. Conclusive Research may have by products which are in effect new exploratory studies leading to new hypothesis.

Conclusive Research is of two types: 47

Descriptive research Experimental research

Descriptive studies are designed to describe certain things. For example, the characteristics of users of a given product; degree to which product use varies with demographic variables such as age, sex, income, etc. Experimental research may be done in a laboratory situation or in the field. For example, consumer reaction to a new product may be tested in a simulated market situation or in the real market.

4.4 Sample Size and method of selecting sample Sample size 58 worker When the size of the population i.e., the number of relevant units to be studied, is very large, sampling becomes necessary for conducting market research. For example, certain consumer products like soap or toothpaste have several crores of consumers and no market research can afford to make a survey of the entire population of consumers to study the consumer characteristics. Then sampling is used. Convenience Sampling: Units included in the sample are selected according to the convenience of the investigator. For example, for a sample survey of bus passengers, passengers waiting at bus stops may be included in the sample. Here convenience sampling is used.

Research Design

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A Research Design is the specification of methods and procedures for acquiring the information needed. It is the overall operational pattern of framework of project that stipulates what information is to be collected from within sources and by what procedures. A Research Design thus specifies: The type of information required. The sources of information. The methods or techniques of data collection.

Broadly there are two sources of information Secondary sources. Primary sources.

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4.5 Data Collection Data Source: - Primary/Secondary 1. Primary Data Collection: The primary data are those data, which are collected afresh, thus happens to be original in character. It can be collected by questionnaires, interview, observation etc. In this project it has been collected through observation and

questionnaires. Questionnaires can be filled through mail, telephone or in person. In order to motivate respondent to take time to respond to surveys the questionnaire should be interesting, to enhance the analysis and facilitate the classification of response into meaningful categories, questionnaires include both substantive questions that are relevant to the purpose of the study.

The questionnaires itself can be disguised or undisguised as to its true purpose. Questions can be open-ended or close-ended (the respondent merely checks the appropriate answer from a list of options).

2. Secondary Data collection: Secondary data means the one that is already available i.e. they refer to the data, which has been collected and analyzed by someone else. In this report the secondary data has been collected from the companies Sales Booklet, Magazines, Newspapers and their websites etc.

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4.6 Limitations of the Study While making Project report on analysis of worker satisfaction in kajaria

ceramics India Ltd. The major limitations in the completion of project as follows: Due to lack of time proper position of company can not be analysied. Due to improper communication between management & worker, true information was not revealed worker were not very much interested in providing maximum help because of their busy schedule. Some data was confidential and not disclosed as per company policies. Most of the respondents were reluctant in giving information. It was very difficult to connect the trainees and supervisors ,as they were busy with their regular day to day activities. The short period had been given, so the study does not covers the whole. There were few places which are not allowable to go in, except of regular worker.

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FACTS AND FINDINGS

JOB SECURITY
To very great To a great Extent 24.44% To very little Extent 36.66% 4% Not at all

extent 30%

It can be seen from the table that 30% of the worker always feel security about there jobs,36.66% feel to very little extent, 24.44% to great extent & 4% feel not at all.

PRMOTION POLICIES:Highly satisfactory 20% 13.33% 22.22% satisfactory Least satisfactory Not satisfactory at all 44.44%

It can be seen that 20% of worker are highly satisfactory with promotion policies 13.33% are satisfactory & rest are least satisfactory or not satisfactory at all.

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APPARAISAL SYSTEM
Highly motivated Motivated Least motivated Not at all motivated

25%

35%

8.88%

31.11%

It can be seen from the table that 25% of worker are highly motivated by appraisal system at department 35% are motivated 8.88% are least motivated and 31.11 are not motivated at all by the appraisal system.

WELFAIR FACILITIES
Highly satisfactory Satisfactory Dissatisfactory Not satisfactory at all 7% 23.00% 25.33% 45.02%

It can be seen from the table that 7% of worker are highly satisfactory by welfare facilities of kajaria ceramics s India ltd. 23.00% are satisfied and 25.33% by welfare facilities.

WAGE REVISION
Highly satisfied 15% Satisfied 45% Least Satisfied 19.44% Not Satisfied 20.55%

As shown in the table15% of worker are very much satisfied, 45% are satisfied 19.44% are least satisfied & 20.55% are not satisfied by the wage revision of kajaria ceramicssIndia ltd.

ANALYSIS AND INTERPRETATION

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Objectives of the training program Around 90% of the worker have responded on the positive side, that the objective of the training has been achieved, though they are not fully satisfied because only 7% have responded to 6 (fully satisfied) option.

Achievement of Personal Objective Though around 85% are of the view that somewhat their personal objectives are achieved but around 17% fully agree to that.

Enhancement of appreciation and understanding of job as a whole Here we got a good response, around 66% agree that after training their understanding and appreciation of the job has increased, however they have come up with different suggestions.

Overall rating of the program Though only 60% have rated the program positively but only 10% have rated them as Excellent.

Length of the Training program 54

Around 74% feel that the length of the program is Just right, rest are of not satisfied.

Logical sequence of the Training program Only around 48% are of the opinion that the program was well sequenced, rest wants more improvement.

Pacing of the Training program Here around 81% of the respondents feel that the pacing of the program was Just Right.

Best things that respondents liked about the program are: Informative content Friendly atmosphere Its practical exposure And few liked the Trainer also.

Things they didnt liked about the Content are: No alternate knowledge was provided Abrupt and hectic schedule Its long stretch Few didnt liked the trainer and the tests conducted

From the table it can be interpreted that there is high percentage of 55

worker who feel they have job security in organization, but also they are few people who feel less secure about their jobs. It can be seen there is a low percentage of worker who feel they are satisfied with promotion policies of organization but there are high percentage of organization. 25% of worker are highly motivated & remaining 75% of worker are less mutated, motivated & not motivated at all. The welfare facilities seem to be highly satisfactory by only by 7%, 23% are satisfied & the rest are least satisfied or dissatisfactory. Wage revision of worker seems to be 15% are highly satisfied, 45% are satisfied & rest 40% are not satisfied or least satisfied. worker who are dissatisfied with promotion policies of

Q. 1

Do you find work assigned to you this interesting?

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Sr. No 1 2 3 4

Option Highly Interesting Rather Interesting Not Much Not at all Interesting Total

No. of worker 30 15 10 03 58

Percentage% 52 26 17 05 100

52% Highly Interesting 26% Rather Interesting 17% Not Much 5% Not at all Interesting
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Q 2 Does atmosphere at your work place affect your performance? S.NO 1 2 3 4 Options Always To very little extent To great extent Not at all Total No. of worker 25 20 10 03 58 Percentage% 43 35 17 05 100

43% of 25 worker 35% of 20 worker 17% of 10 worker

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 5% of 3 worker Q 3 Does your wages or salary meet your economic needs? S.NO Options 1 Yes 2 No Total No. of worker 40 18 58 Percentage% 75 25 100

75% OF 40 WORKER 25% OF 18 WORKER

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Q 4 Do you feel feedback provided to you are satisfactory? S.NO 1 2 3 4 Options Always To very little extent To great extent Not at al Total No. of worker 25 15 10 8 58 Percentage% 40 30 20 10 100

40% OF 25 WORKER 30% OF 15 WORKER

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 20% OF 10 WORKER 10% OF 8 WORKER Q 5 Are you satisfied your wages and salaries? S.NO A B C D Options Highly Satisfactory Satisfactory Dissatisfactory Not at all Total No. of worker 35 15 05 03 58 Percentage% 60 26 9 5 100

60% OF 35 WORKER 26% OF 15 WORKER

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 9% OF 5 WORKER 5% OF 3 WORKER

Q 6 Do you feel company provide adequate level of job security? S.NO A B C D Options Always To very little extent To great extent Not at al Total No. of worker 30 15 10 03 58 Percentage% 52 26 17 5 100

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 52% OF 30 WORKER 26% OF 15 WORKER 17% OF 10 WORKER 5% OF 3 WORKER Q 7 are you satisfied enthused with last wage revision in your salary? S.NO 1 2 3 4 Options No. of worker Percentage% 60 25 10 05 100

Very Much 33 Ruther 18 Not that much 05 Not at all Total 02 58

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 57 % OF 33 WORKER 31 % OF 18 WORKER 9% OF 5 WORKER 3% OF 2 WORKER

SWOT ANALYSIS
Strength
Experienced work force: Experience work force of kajaria ceramic company is well which give strength to make run in present competitive corporate atmosphere. 64

Licenses renewed Compliance made effective Licensing safety consciousness

Weakness
worker turnover Low capacity utilization Unorganized labour contractors. Lack of HR development

Opportunities
New Product Development & Better Manpower. Benchmarking HR Practices Sharing HR Practices with other locations Introduction of new HR initiatives

Threats
Surrounded by sick industries Closures of about 60% of surrounding industries Labour case

CONCLUSION

Kajaria ceramics is a very big brand name and I am very thankful to the kajaria ceramics people to help me in completing my project in kajaria ceramics ltd. 65

Kajaria ceramics provides me the good opportunities to make my skills stronger in human resource management. I am also very thankful to my project guide Mrs. Kshama aggarwal for giving me her useful guidelines and important time. While doing this project have talked with many people and came to know about the human resource and Ilearnt that how the companies works and what they have to do for retaining there position in the human resource.

Kajaria ceramics ltd. has trained me to face the challenges whatever in the human resource

On the basis at data & its interpretation, we came to the conclusion that service conditions significantly affect the motivation level of worker of Kajaria Ceramics ltd. Which ultimately affect the performance the service conditions perceived by worker is less satisfactory. Majority of worker were not sell motivated there are the factors which contribute to this problem such as:-

worker of Kajaria Ceramics ltd. Feel that promotion is to be decided on merit basis & not only by seniority basis a s it is prevailing in Kajaria Ceramics ltd.

worker of Kajaria Ceramics ltd feel that leader ship style of their organization should also be taken into consideration. There should not be any pressure from their respective superiors.

Whatever motivation factors are given to worker couldnt motivate them unless they have positive attitude to their work. Intrinsic motivation factors have its impact only when the person is self motivated to same extent & should develop positive attitude & willingness towards their work. 66

RECOMMENDATION AND SUGGESTIONS

According to my point of view I would suggest that the following. The object of the training programme must be properly communicated to the workers Importance of training must enlightened among the new comers and inexperienced workers. Advanced technical aids can be used by he management to have effective results. The organization is suggested to place Indians as the top-level superiors for better communication. The trainee can be motivated to use the programmes more effectively in developing others. Taff under this Brand name they have got a group of labor who are properly trend and capable of laying down good tiles. Give training to the Massion, Technical training in sanitary ware. Only company worker will go and fit.(Which are properly trend by company in Jakogi ware.) Whenever we get any tile approved we should take proper supply schedule from the client. Proper SAMPLE should be provided to the ARCHITECH &BUILDER office because they choose the product from sample.

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More boards and hoarding should be placed in side of roads and public places. They should use mass media like TV, newspapers, etc to promote company product. This will help in increasing the sales volume.

Various

worker welfare scheme should be provided to increase their

morale and interest in the organization. Organization should use merit basis method for promotion rather than seniority basis. 40% worker are not satisfied with wage revision so organization should revise the wage by appraising performance properly.

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APPENDIX

I am the student of AMS ALWAR, it is requested that questions may be answered as you think proper for study purpose. I request you to fill this questionnaire which help me to complete my project. Name:_______________________________________________ Age:____________ Qualification:___________________ _______________________ Duration of Present Post: ________________________ Level / Designation :

1. Do you find work assigned to you is interesting? (a) Highly interesting (c) Not much (b) Rather interesting (d) Not at all interesting

2. Does atmosphere at your workplace affect your performance? (a) Always (c) To great extent (b) To Very little extent (d) Not at all

3. Does the work culture of your company enable you to meet commitment, faster learning and work as a team? (a) Always (c) To great extent (b) To Very little extent (d) Not at all

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4. Does Leadership and working style of your boss give you free hand to perform? (a) Always (c) To great extent (b) To Very little extent (d) Not at all

5. Are you satisfied by direction, guidance and support provided by your immediate superior to achieve target goal ? (a) Always (c) To great extent (b) To Very little extent (d) Not at all

6. Do you feel feedback provided to you are satisfactory ? (a) Always (c) To great extent (b) To Very little extent (d) Not at all

7. Do you feel that company policies are well planned, implemented and adequate ? (a) Always (c) To great extent (b) To Very little extent (d) Not fair at all

8. Are you satisfied with your wages or salaries? (a) Highly satisfactory (c) Dissatisfactory (b) Satisfactory (d) Not at all

9. Generally how do you view the welfare facilities and (housing, education, transport, medical and canteen etc.)? (a) Highly satisfactory (c) Dissatisfactory (b) Satisfactory (d) Not at all

worker benefits

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10. Are you satisfied and enthused with last wage revision in your salary? (a) Very much (c) Not that much (b) Rather (d) Not at all

11. Have you ever encashed your leaves? yes / no) 12. Does your wages or salary meet your economic needs?

(a) yes

(b) no

13. Do you feel company provide adequate level of job security? (a) Always (c) To great extent (b) To very little extent (d) Not at all

14. Do you feel motivated with the recently introduced appraisal system of company? (a) Highly motivated (c) Least motivated (b) Motivated (d) Not motivated at all

15. Are you satisfied with retirement rule of the organization? (a) Highly satisfactory (c) Dissatisfactory 16. Do you feel bright future ahead? (a) I often think it is bright (c) I dont think it is so bright (b) I some time think it is bright (d) I think it is never brigh (b) Satisfactory (d) Not at all

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BIBLIOGRAPHY

BOOKS:
C.R.KOTHARI Research Methodology. Edition, 2. Publisher, New Age International, 2008 .

WEBSITE:
WWW.KAJARIACEARMICS.COM WWW.REALESTATEONLINE.COM WWW.INDIANREALESTATEFORUM.COM

MAGAZINE:
BUSINESS WORLD

NEWSPAPER:
HINDUSTAN TIMES THE TIMES OF INDIA ECONOMIC TIMES

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