Table of Contents

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Chapter 1 1.1 1.2 1.2.1 1.2.2 1.2.3 1.3 1.3.1 1.4 1.5 1.6 1.6.1 1.6.2 1.6.3 1.6.4 1.7 1.8 2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 2.3.9 2.4 2.4.1 2.5 3 3.1 Title Chapter 1 Introduction Organization Profile Name and address of the company Market status Awards and Recognitions History Milestones of the Co. Form of Ownership Corporate Structure Planning and associated functions Mission Vision Objectives Quality Policy Organization structure Technology Chapter 2 Production Sub departments Product range Raw materials and its sources Quality control Pollution control systems Safety measures Sales and distribution Market details Major competitors Advertisements and sales promotion activities Distribution channels Human resource management Number of employees Workman classification Qualification required Selection and recruitment Welfare activities and facilities Wages for workmen Attendance Performance appraisal and promotion policy Employee grievances management Finance Functions of finance department Social obligations and ethics Knowing a manager Span of control
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Page No. 4 5 5 6 6 6 7 7 8 8 9 9 9 10 10 10 13 14 15 15 16 17 17 18 18 18 18 19 19 19 20 20 20 21 21 21 22 23 23 23 24 24 25 26 27

46 47 48 49 50 51 52 53 54 55

3.2 3.3 4 4.1 4.2 4.2.1 4.2.2 4.3 -

Authority Instances of delegation of authority Teams and leadership Teams Norms Appearance norms Performance norms Leadership Conclusion Photos

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List of Tables
Sl. No. 1.1 Title Address of the Co. and its branches Page No. 8

List of Charts
Sl. No. 1.1 Title Organization Structure Page No. 12

CHAPTER 1
Introduction Organization profile History Form of ownership Corporate structure Planning and Associated Functions Organization structure Technology

1.1 INTRODUCTION
Agriculture is a way of life, a tradition that for centuries has shaped the thought, the outlook, the culture and economic life of India. Life on earth is supported by the inches of earths crust, fulfilling the basic needs of food, shelter and clothing. Over 100 million Indian farmers and farm workers have been the backbone of Indias agriculture. In the beginning, ancient methods were adopted by farmers. All crops are produced and prepared by human muscles. The entire process from sowing the seed till harvesting was a time consuming p r o c e s s w h i c h r e q u i r e d a l o t o f l a b o u r w o r k . T h e c o s t o f p r o d u c t i o n w a s h i g h a n d t h e benefits were not promising. Indian agriculture has contributed significantly in achieving self

sufficiency to avoid food shortages in our country. Agriculture is therefore and will continue to be the central to the development of the country. Rapid growth of agriculture is essential not only to achieve self reliance at national level but also for house hold food security. The existing agricultural scenario presented a dismal picture of traditional farming methods, low yielding seeds primitive implements, unsuited to large scale cultivation. The only solution for this is mechanized farming which could turn around the virtual fortune of India. In order to achieve this objective, indigenous agro machinery units were to be set up, without resorting to imports, which undoubtedly posed a heavy burden on the nations exchequer and were hardly suited to the local conditions. Thus, out of the nations need, K A M C O w a s b o r n i n t h e ye a r 1 9 7 3 , a s a f u l l y o w n e d u n d e r t a k i n g o f G o v e r n m e n t o f Kerala.

1.2 ORGANIZATION PROFILE

State of Kerala has a peculiar state of affairs in its

a g r i c u l t u r a l e c o n o m y. B e i n g a consumer state, it depends largely on agricultural products from the neighbouring states. It has tiny and small farmlands owned by private landowners. Even those available lands are not fully utilised for cultivation, owing to economic reasons. Low productivity coupled with prohibitive costs of cultivation has virtually driven the traditional farmers out of their vocation. Under this

scenario, mechanization of the farming is a nonstarter proposition in

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the state. Barringtraditional tools and tackles emplo yed by the farmers i n t h e c u l t i v a t i o n , t h e r e w e r e n o motorised or mechanised equipments available in the state. KAMCO, was adventurous enough to venture into this bleak scenario, and introduced its power tillers and other medium and small sized mechanical aids of cultivation. The Kerala farmers grabbed this opportunity, and made use of the benefits of automation in their fields, which in turn made the entire operations of the KAMCO successful. As of now, KAMCO is the one and only one industrial unit in the state, which provides machineries to the farming segment as an aid to their cultivation. Being a monopoly, KAMCO controls the Kerala market in supplies of automated farming equipments.

1.2.1 Name & Address of the Co.

KAMCO stands for Kerala Agro Machinery Corporation . The full address of KAMCO is : Kerala Agro Machinery Corporation Limited (A Government of Kerala Undertaking) Reg. office: Athani 683585, Ernakulam Dist, Kerala State Telephone: 91- 484- 2474301 to 2474305, Fax: 91- 484- 474589 e-mail: kamco@ satyam.net.in

1.2.2 Market status of the Co.

KAMCO is one of the professionally managed company owned by state government. Present status of KAMCO is synonymous with service to the small and marginal farmers of the country. KAMCO through their precision and quality is revolutionizing the small and marginal holdings throughout the country. Today KAMCOS products are widely used and demanded in all over India, enjoying over 60% of the market share at national level. Th e co m p an y with its fo ur pl a nt s

at At h a ni , Ka l a m a ss e r y, Ka nj i kod e and M al a u ni t i s confidently meeting the demand for KAMCO products in India and abroad. The main markets for the products are at West Bengal, Assam, Tamil Nadu, Tripura, Kerala, Meghalaya, Bihar, Gujarat and Manipur. Presently KAMCO have 45 dealers all over India.

1.2.4 Awards & Recognitions KAMCO received outstanding safety award for 4 times.
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1.3 HISTORY
The Kerala Agro Machinery Corporation Ltd popularly known as K A M C O w a s established in the year 1973 as a subsidiary of Kerala Agro Industries Corporation Ltd (KAIC) and subsequently became a fully owned Government of Kerala undertaking at Athani, 25km north of Kochi. It all began in 1958, when Dr. Rajendra Prasad, the President of India was presented with a Kubota Power Tiller by the Japanese (M/S. Kubota Ltd, Japan, the worlds leading manufacturer of power Tiller and other agriculture machinery). The Kerala Agro Industries Corporation Limited (KAIC Ltd.)

Trivandrum,(Government of Kerala Company) promoted the establishment of Kerala Agro Machinery Corporation Limited (KAMCO).The KAIC Ltd. entered into a technical collaboration

agreement with M/S.Kubota Limited, Japan in February 1972.On 15.11. 1 9 7 2 , t h e K e r a l a Industrial and Technical Consultancy Organisation Limited (KITCO) were entrusted with the work of Rs.2 crores as a subsidiary of M/S.KAIC Ltd, which held the entire paid up capital s h a r e s i n K A M C O . E v e n t h o u g h t h e c o m p a n y w a s f o r m e d a s a s u b s i d i a r y o f K A I C L t d , subsequently the company became a fully owned government company by transferring the shares held by KAIC Ltd. K A M C O h a s c o m p l e t e d i t s 3 3 ye a r s a n d i s r u n n i n g o n p r o f i t f o r t h e l a s t 2 2 ye a r s continuously increasing its production, turnover and profit year after year.

1.3.1 Milestones of the Co.

KAMCO has three more units:-Kalamassery unit in Ernakulam dist. Kanjikode unit in Palakkad dist. and Mala unit in Trichur dist. The

K a l a m a s s e r y u n i t manufactures diesel engines, Kanjikode unit produce power tiller and the Mala unit manufactures power reaper. A major milestone for the company was the award of the International Quality Excellence Certificate under ISO 9002 in October 1996.2. KAMCO is the second public sector undertaking in Kerala getting this coveted got IS O

c er t i f i c at e and t h e o nl y pu bl i c s ec t o r
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und e rt aki n g wh o h as

900 2 certification justify in the high standards of the products for their three units. From 15-03-2002 onwards KAMCO became an ISO 9001- 2000 registered KPMG quality registration. company by

1.4 FORM OF OWNERSHIP

It is a public ltd. Co. Being a non-listed GOVT. Company, provisions of the companys Act 1956 withregard to corporate governance is not applicable. As far as KAMCO Ltd is concerns the business environment is in positive side in all respect. KAMCO Ltd products having heavy demand in the market, they are unable to meett h e r e q u i r e m e n t o f t h e c u s t o m e r s . T h e c o m p a n y i s f u n c t i o n i n g i n a c o r d i a l a n d h a p p y atmosphere. The officers and staff in the company are very co-operative and friendly moving. The Cochin Port and Cochin Aerodrome are situated very near to the company and this will

also help to boost the business. The company is running astabilised c a n t e e n f o r t h e i r employees to maintain a harmonious atmosphere resulting to make maximum output.

1 .5 CORPORATE STRUCTURE
KAMCO has three more units:-Kalamassery unit in Ernakulam dist. Kanjikodeu n i t i n P a l a k k a d d i s t . a n d M a l a u n i t i n T r i c h u r d i s t . T h e K a l a m a s s e r y u n i t manufactures diesel engines, Kanjikode unit produce power tiller and the Mala unit manufactures power reaper. The address of the Head Office and other three units are : Table 1.1 Unit Athani Address Reg. office: Athani 683585, Ernakulam Dist, Kerala State
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Palakkad

Kalamassery

Mala

Tele: 91484- 2474301 to 2474305 Fax: 91- 484- 474589 E-mail: kamco@ satyam.net.in KAMCO Palakkad Unit New Industrial Development Area, Menonpara Road, Kanjikode P.O., Palakkad 678 621, Kerala State. Tele: 91 491- 2567253, 2567258 Fax: 91 491- 2567242 KAMCO Kalamassery Unit Industrial Development Plot, South Kalamassery 683109, Ernakulam Dist, Kerala State. Tele: 91484- 2555001, 2543328 Fax: 91- 484- 2558633 KAMCO Mala Unit Naithukudy , Mala 680 732. Trissur Dist, Kerala State. Tele: 91 480- 2892506, 2892507 Fax: 91 480- 2892213

1 .6 PLANNING AND ASSOCIATED FUNCTIONS

1 .6 .1 Mi s s i o n
To be an innovative, resourceful and profitable company. To meet customer requirements of quality, service and price consistently. To make doing business with us easy and delightful to our customers. To provide a congenial and entrepreneurial work environment in which employees can respond to the needs of business and service earn fair reward and can be satisfied.

1.6.2 Vision
KAMCO with over 3 decades of engineering excellence, stands as the number one power tiller manufactures in India. Not surprising, with four state of the art products, an innovation R and D and stringer quality control systems rated as one of the best in the country. The technically competent, dedicated management and workforce will go on to ensure that KAMCO shall be the leader for several years to come.

1.6.3 Objectives
The main objective of the company is to manufacture or assemble in India, either in collaboration or otherwise tractors, power tillers, power reapers, combine harvesters, transplanters, diesel engines, pump sets, accessories and attachments and spares thereto. The other objectives are as follows; 1. To organize, conduct or manage engineering workshops or repair shop. 2. To manufacture, import, buy, sell, or deal in workshop machinery, machine tools and metals of all kinds and to undertake repairs. 3. Servicing of agricultural machinery or other equipments, implements and tools. 4. Rendering other kinds of services for services for consideration or otherwise.

1.6.4 Quality policy

Total customer satisfaction through quality products and service with improved technology and employee participation. The Co. comply with the requirements of the customers and the applicable statutory regulatory requirements. The effectiveness of the established quality management system is continually improved to enable achievement of the policy.

1 .7 ORGANIZATION STRUCTURE
KAMCO is governed by the Board of Directors. Board includes Chairman, Managing Director and other Directors. The Government of Kerala nominates the Chairman of the Board. The Chief Executive Officer of the company is the Managing Director who shall exercise powers, subject to the overall control and supervision of the Board. The Managing Director is the topmost official and the Government gives del e ga t i o n of a ut ho r i t y t o t h e Managing Director. He may be entrusted and delegated power from time to time by the Board. The Managing Director is the operational head of the company supported by General Manager and Deputy General Managers for different sections. Managers and Deputy Managers will assist the General Manager and Deputy General Manager. Board of directors : 1. V.Chamunni
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Director & Chairman

2. S.M.Reghunathan 3.C.P.Murali 4.M.Aboobakar 5.K.Ramdas 6.Edakulam Hameed 7.Sulaiman Khalid 8.K.K.Gangadharan 9.M.Albertian

Managing Director Director Director Director Director Director Director (Director of Agriculture, Govt. of Kerala) Director (Dy Secretary, Agriculture, Govt. of Kerala)

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ORGANISATION STRUCTURE Chart 1.1

Board of Directors

Managing Directors SM(HR) Manager(Pdn.) DGM(R&D)

( DM(Pdn.) AM(MTNCE)

MANAGER(HR)

SM(MTLS)

SM MKTING

DGM(F & Cs)

DM(purchase)

DM(stores)

DM(mkting)

Manager System

Manager Security Network SM(finance)

*SM - Senior Manager *DM - Deputy Manager *DGM - Deputy General Manager *AM - Assistant Manager

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1.8 TECHNOLOGY
KAMC O i s st i l l i n t he proc ess of developing a system whereby it can make optimum usage of IT recourses. Accounting software used in the Co. are Oracle, Tally and ERP. At present KAMCO makes use of a customized ERP package based on ORACLE. The package was developed and was implemented in 2001-2002. The system department does not play a role in production planning. The m odul e i ncorporat ed i n ER P package used are t he Fi nan ce Modul e, Market i ng Module, Purchase processing, and

Inventory Module, Human Resource Management and the Maintanence Module.

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CHAPTER - 2 DEPARTMENTS STUDY

Production Sales and distribution Human resource Management Finance Social obligation and Ethics

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2.1 PRODUCTION
650-700 products per month are produced in Athani HO. At present the target is 1000 per month. The major advantages of the Co.s products are higher pulling capacity and 12 horse power is applied. The head of production department is Production Manager. Production Department is divided into two :1. Machine Shop 2. Assembling & Painting

2.1.1 Sub Departments

Machine Shop : M achi ne S hop i s res ponsi bl e for ensuri n g t he conform i t y wi t h pres cri bed st andards , t he workers in the machine shop are fully experienced.14 components are manufactured in the Machine Shop. These components are called as critical components. Processes like milling, drilling, boring etc are doing on the materials to get products which are used in the assembly. They inspect the various stages of production. This reduces rejection to a great extend. Shift officers are in charge of machine shop. From machine shop the finished products are sent to quality checking and from there to stores. Assembling & Painting : Assembly is one of the major sections in the production department. The finished products are taken from the store and it is sent to the assembly as required. The engine assembly is one of the major works in the assembly. After testing the assembled engines, it sent to the painting section. Through different assembling we get the final product. In KAMCO, they are using a good advanced painting booth. After clearing, the components will go for painting through a conveyer belt and after painting it will go to the oven through the belt. Mainly they are using 2 colours for tillers, one is ash and the other is post office red. In each stages of Production Quality check up is done. Engine line assembly consists of 3 steps ie; E1 Assembly, E2 assembly and engine testing. After engine line assembly and transmission line, process testing

is conducted for all speeds, brake, driving shafts, sound etc.

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After all these processes, engine finishing is done .Then engine is mounted on tiller and the tiller finishing part is done.

2.1.2 Product Range

Today KAMCOs well known product range includes the KAM C O p o w e r t i l l e r , KAMCO power reaper, KAMCO Agra Garden tiller and last but not the least, KAMCO Diesel Engine, each of these products are time tested and have proven their worth many times over for their owners. Kamco Power Tiller Popular as the complete farming unit it is just that it can deal with a host of farming operations like tilling, ploughing, pudding etc,. Also it has been designed to function equally well in both wet and dry soil conditions. No wonder, it has retained its market positions as the number 1 power tiller in India for the last 3 decades, after marketing its debut in the year 1973. A tiller costs Rs.120,000. KAMCO Power tiller is a versatile machine primarily used for preparation of land for f arm i ng operat i ons wi t h sui t abl y desi gn ed acc essori es t h e m achi ne c an be used for a

l argenum ber o f spec i fi c operat i ons l i ke t i l l i ng, pl oughi n g, p um pi ng, pudd i ng, l e achi n g, hul l i ng, ridging etc. Kamco Diesel Engine It has been well received in the market owing to its virtually trouble-free performance. KAMCO ER90 Engine is equipped with radiator and specially designed die cart multi-blade axial fan. The engine can operate continuously for several hours. It can be used as a prime mover either for stationery or for moving applications.

Kamco Agria Garden Tiller The petrol-engine, eco friendly power tiller ideal for paddy, wheat

cultivation, inter cultivation applications, landscaping or gardening, potato harvesting and for land preparations athort i cul t ur al farm s. A hi ghl y f uel operations. Ideal for

effi ci ent and power f ul equi p m ent wi t h eas y-t o -cont rol small and medium farmers. One garden tiller costs Rs.42,000.

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Kamco Power Reaper Powerful enough to reap one hectare of land within 3 -4 hours. Prevents loss of grains while reaping. Gathers sheaves into neat windrows. Can reap farmlands at working pace. Can be easily lifted and carried by two persons. It is used for ideal for paddy or wheat cultivation, inter cultivation applications, various land preparations at horticultural farms, landscaping,gardening, p ot at o harvest er. Indi vi dual i nspect i on for conform i t y wi t h s peci fi cat i on. Ever y m achi n e undergoes running test for several hours before sentencing as passed for delivery. A reaper costs between Rs.68,000 Rs.70,000.

2.1.3 Raw Materials and its Sources

There are about 110 companies who supplies raw materials for KAMCO. Mainly they are from Bangalore, Coimbatore and Kerala. Atleast 2 or 3 companies supply same type of raw materials. The Co. doesnt import any raw materials. The main parts supplied are Trans Shaft, Pistol, Gear and Cletch. Manikyam Co. in Coimbatore supplies radiator. Arun Jyothy Co. in Coimbatore supply 30 40 items. Pumps are purchased from Indian based companies. The types of engine used are DA Engine and ER-19. DA Engine gives more power, less fuel is required and creates less pollution. One ER-19(Economic Radiator 19) costs Rs.2000-Rs.2500.

2.1.4 Quality Control

Quality standards for each and every component and product have been established by the company and well documented. Vendors premises and their manufacturing are also periodically assessed. All components are subjected to close inspection and observations are documented to ensure traceability at any time. Quality Assurance Department is equipped with all modern facilities. The company has got a Standards room for calibration of all measuring instruments. Fully documented history cards of the measuring instruments are maintained so that periodical calibration of equipments is carried out regularly. The companys policy is to equip itself with all all modern inspection and testing equipments as additions as well as replacements. The products are subjected to running tests for pre-determined durations and only those which pass the requirements are accepted and declared ready for despatch. Stock Department stores the inventory.
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2.1.5 Pollution Control Systems

Athani, Palakkad and Mala units of the company have installed

effluent treatment s yst em s desi gned b y t he LBS cent r e f or sci ence and Technol o g y and app roved b y S t at e Pollution Control Board. The all new engines will reduce pollution and it also reduces the fuel consumption than the ordinary engine. There is no hazardous process going on in the Co. A small amount of pollution is created only from painting process. Inorder to save electricity machines are worked till 7 in the evening.

2.1.6 Safety Measures

Safety measures are adopted by the Co. There are fire exists in different corners of the factory. Lots of National Safety Councils tips are hanged in the walls of the factory. One of them is Your safe means safety of your family. Shoes and masks are given to the workers of the production department. They should compulsorily wear these while production is going on. There is also a safety committee in the Co.

2.2 SALES AND DISTRIBUTION

2.2.1 Market details
In the previous year company sold more than 7600 units. In the last year KAMCO attained a profit of Rs.13 crores. Considering the Indian market, 60 % of t he m ark e t s hare i s i n t he hands of KAMC O. KAMC O coul d achi ev e t hi s b y du e t o Globalisation, Foreign countries like China and Korea could introduce their products in Indian markets. Their products are very cheap. But in terms of quality, KAMCO is first. All the products produced in the Co. are fully consumed. That is 100% of sales happens every year. 40% of orders are from Bengal, Assam and Tamil nadu. Exports depends on the demand from foreign countries. Even though the Co. get orders from foreign countries, they try to avoid those orders because of the huge orders that the Co. receive from the states of India. KAMCO exports their products mainly to America,

Iraq and Sri Lanka. The Co. provide a service guarantee of 6 months to its customers. Major markets : Tillers Kerala, West Bengal, Tamil Nadu and North Eastern states. Reapers Chhattisgarh, Orissa, Andhra Pradesh, Kerala and Tamil Nadu.
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2.2.2 Major Competitors

In India VST, Bangalore is the major competitor of KAMCO. Mitsubishi and Mahindra are also the competitors. Firms from Japan, Korea and China are also competing with KAMCO in the same market. Chinese products are very cheap but lacks in quality. In India KAMCO is the no.1 company producins tillers and reapers. Because the company give importance to quality.

2.2.3 Advertisements and Sales promotion activities

In the International market the sales promotion of the company is only through website. In India all the state govt.s have their own dealerships to sell the products. The company gives dealerships to the private parties as well companys main product is power Tiller. Company has i nvent ed a n ew en gi ne, whi ch i s a di es el en gi ne wi t h di rect i nj ect i on. Fo r t he sal es promotion of this engine company selling the KAMCO Super D1 Power Tiller with the same price of the ordinary Power Tiller Advertising is also a part of sales promotion. In every budget company allocate nearly 50lakhs for advertising. Company also provides some financial help to the dealers for advertisements. The co. do advertising through farmers magazines, newspapers, campaigns and stalls in statewise exhibitions. They advertisements mainly in north Indian farmer magazines.

2.2.4 Distribution Channels

Sales of the products are made only through dealers. In each state there are 2 dealers. One is govt . i nst i t ut i on and ot her i s a P vt . fi rm . The com pan y has a net work o f 70 deal e rs . New dealers are appointed to cover selected districts in Tamil Nadu, Karnataka, Maharashtra, Orissa and Andhra Pradesh and in the other states

where the company has dealerships. The dealers target is depend upon the area. If a dealer exceeds their target they get incentives

dependingupon t he e x ce s s quant i t y sol d t hrough t hem . Th e t ransp ort i n g faci l i t i es are p ro vi d ed b y KAMC O i t sel f. The sal es ar e m a de a gai nst c as h advanc es ex cept i n few cas es; i t i s m ade against bank guarantee if the payment period does not exceed 30 days.

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Major dealers are West Bengal Industries Corporation, Friends Machinery and Spares Ltd., Tripura Horticulture Group, ChemTrade India Pvt Ltd., Assam Agro Industries Development Group, Krishishilpa Udyog and Stanley Roy Constructions.

2.3 HUMAN RESOURCE MANAGEMENT HR department deals with the welfare of human beings working in an organisation. Besides welfare, it looks after discipline, IR, training and development, desirable work at m osp her e,i n t erper son al rel at i ons hi ps et c. HR Depa rt m ent hel ps i n m oul di n g t heindividuals to attain maximum development. Mr. Vimal Kumar is the HR Manager.

2.3.1 Number of Employees

W i t hout t he dedicated employees, KAMCO would have never reached the peak of success and achievements. The total employees strength of KAMCO is 620. Out of which 400 ees are permanent staffs and 150 ees are temporary staffs. In 2013, 70% of old workers are retiring. 345 ees are working in production department and out of it 70 are temporary employees. 15 ees are working in HR department.

2.3.2 Workman Classification

Workman shall be classified as:1. Permanent 2. Probationers 3. Temporary 4. Trainees 5. Apprentices There are 2 shifts per day in the Co. That is from 7 a.m. 3 p.m and overlap from 11 p.m 7 a.m. Employees are granted with leaves such as earned leaves, sick leaves, maternity leaves, special leaves and casual leaves.

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2.3.3 Qualification required

Mechanics require qualification of B.Tech + experience, diploma or IT mechanical. Workers or helpers should qualify 10th std.

2.3.4 Selection and Recruitment

For the posts like Accountants, Office Staffs, Typists, Stenographers etc the people are hired through PSC recruitment. Executive and Technical post are filled through Company recruitment. Employment Exchange forwards a list of candidates for the required posts in the unit of their notification to the District Employment Officer, Ernakul am . Va can ci es are advertised in major news papers or notified to the Employment Exchange in accordance with the Govt. rules. There is no discrimination based on colour, religion, race etc. Appointments a re purel y b ased on m eri t . The D y. M ana ger i s i n ch ar ge of R ecrui t m ent and S el ect i on, Promotion, Performance Appraisal, PF etc. After obtaining applications, initial screening is done on the basis of the specifications gi ven for t h e j ob. S hort l i st ed can di dat es consi der ed m at ch i ng t he profi l e, go t h rou gh t he sel ect i on pro cess. The s el ect i on p rocess consi st s

o f wri t t en t est , grou p di scussi on and interview.

2.3.5 Welfare activities and facilities

1. KAMCO provides items which are directly needed by employees during production and in case of emergencies like goggles, glouse, boots, etc. 2. The company also gives benefits like LIC Schemes, accident benefits, personnel benefits, insurance, first aid, etc. 3. Health care facilities involving canteen and medical facilities like ESI, Medical Reimbursement. Medical allowance is given to all employees. They can undertake treatment for free at any hospital. 4. Canteen is operated by Co. staff with union members. 5. Recreation club which gives house building advance, loans, contribution to recreation, etc. 6. Cool drinking water, Welfare officer, washing allowances, Occupational safety, first aid boxes, canteens etc. 7. Blood donation camp.
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8. Farmers club. 9. Service society is operating in KAMCO. In case of money requirement employees will get the required amount from this society. Outsiders can also invest in the society with 10 interest. But loans are available only to the employees of the Co. People are appointed in this society on election basis. 10. When one person leaves the Co., each employee should contribute Rs.100 eachto the welfare. So total of Rs. 50,000 would be available to the leaving employee. 11. Night shift employees are provided with vehicle facility. 12. PF is also given to the employees.

2.3.6 Wages for workmen

All workmen are employed on monthly wages and will be paid on a monthly basis. Employees are grouped into grade1, grade 2 and grade 3 categories. Grade 1 includes sweepers whose basic salary is Rs.7300 per month. Salary goes to employees account either in Federal Bank or Union Bank. The company discuss with the govt. about the increment in salary and the increment happens once in 3 yrs. Employee Salary of Pay. A product i on i n ce nt i ve schem e i s f ol l owed i n KAMC O for t he benefi t o f employees, which constitute quarter of the pay packet. It aims at increased output, productivity and utilisation of Salary settlement is based on the Kerala Government

resources. Thi s sch e m e covers al l t he pe rm an ent employees. In KAMCO, incentives are mainly of 3 types: 1) Direct incentives 2) Semi direct incentives 3) Indirect incentives Em p l o yees are gi v e n fes t i val al l owanc es of R s 5000/ - eve r ye ar i n

connec t i on wi t h onam, ramzan, Christmas etc. The amount is recovered in 10 equal instalments. Conveyance allowance for purchasing cycle, scooter, cars, loans are given to employees above Deputy Manager grade. For minimum 5 years of experience is required to avail car and scooter loans. Interest is 10%. Incentive is given for overtime working.

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2.3.7 Attendance
Every workman shall be given an attendance card containing his name, number etc. Similarly every permanent and probationary workman shall be provided with an identity card containing his stamp size photo, name, number, date of joining, etc. Assistant Manager Security is in charge of maintaining attendance and also maintaining discipline in work environment.

2.3.7 Performance Appraisal and Promotion Policy

Performance Appraisal is conducted once in a year for officers and for workers, it is conducted when grades are given. There is a prescribed form for conducting Performance Appraisal. Promotion depends upon seniority. As per the promotion policy of KAMCO, an employee will be eligible for promotion if he has served in a particular post for at least 3 years, or he will be given promotion when the vacancy occurs. Another aspect is Grade promotion, ie, promotions is based on grades of employees. In worker category there will be a grade change after a period of 5 years. For officer level, grades allotted are as follows:G8 Asst. Engineer, Superintendent G9 Asst. Manager G10 Deputy Manager G11 Manager G12 Senior Manager G13 Deputy General Manager G14 General Manager Transfers are mainly for officers only. For that MD is the authorized person.

2.3.8 Employee grievances management

A suggestion box is kept in the main office. Complaint book is also kept there. In case of any complaint, an employee can either write it in the book or report to section manager. In case of any problem arises in any departments of the Co., it should be immediately reported to the supervisor. The final punishment list is left out with the MD.

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2.4 FINANCE
In KAMCO, finance department plays a major role because in public sector only very few companies are earning profit. KAMCO have more than one unit established with their own fund. Surprising thing is that KAMCO is giving dividend and making profit for 22 years. The surplus money is invested in the treasury and gets an interest of 7-8% from the treasury .The finance department keeps record of everything concerning income or expenses. KAMCO has shares of 50 lakhs in International Airport, Nedumbassery and shares of about 1.5 Cr. in Kerala feeds Ltd. KAMCO is a multi-crore, multi-unit organisation. It means that KAMCO havem or e t han o n e uni t or t hei r own fund wi t hout an y ex t ernal fun ds. KAMC O has n o loaned fund and hence the finance charge is nil. KAMCO has fixed deposits of about 20 crores, which earns interest to the company. Company raises the working capital with the help of the customer advances and fixed assets. KAMCO is paying dividend ranging from 10-30% for the last 15 years without any fail. KAMCOs finance department deals with the procurement and management of funds. This department controls the overall financial transaction of the company. It controls the entire receipts and payment of all divisions. KAMCO is running on profit for the last 22 years. It is a unique feature of KAMCO. No other organisations are like this. Finance department concentrates more on the cycle of flow of funds ie., i n fl ow and out fl ow of funds and i t al so ensures t hat whet her t here i s appropri at e volume of funds needed for efficient business transactions. It also takes great care in allocating the funds needed for efficient business transactions.

2.4.1 Functions of finance department

1. Budget & Budgetary control 2. Management of receipts 3. Management of payments 4 . A u d i t i n g 5 . C o s t i n g
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6. Statutory transaction

2.5 SOCIAL OBLIGATION AND ETHICS

Social activities are undertaken by KAMCO for the welfare of the general public and the nation. There is a blood donation camp and farmers club. They produce less polluting products. The co. does not undertake any activities against the society. Machines are worked till 7 p.m. every day in order to save electricity.

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CHAPTER 3 KNOWING MANAGER

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3.1 SPAN OF CONTROL

There are 6 charge hands under each engineers.

3.2 AUTHORITY
Authority remains with the top management itself.

3.3 INSTANCES OF DELEGATION OF AUTHORITY

Most of the decisions are taken by the Deputy General Manager. No authority is delegated. Each person performs only their own roles.

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CHAPTER 4 TEAMS AND LEADERSHIP

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4.1 TEAMS
There are different committees in the company like safety committee, service society committee, election committee, etc. In case of any problem, teams are formed to solve the specific problem. Section meetings are held according to each departments.

4.2 NORMS
4.2.1 Appearance Norms
The company gives two pairs of uniforms to its employees every year. They will also give the incentive to stitch the uniform. Uniform is required only for the mechanics. An ID card is also given to each employees. Engine employee card is also given to all employees working in the production department.

4.2.2 Performance Norms

Targets are fixed by the company. Over production is not encouraged. Employees are given incentives for achieving the target.

4.3 LEADERSHIP
Autocratic leadership is followed in KAMCO. Final decisions are taken by the top management.

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CONCLUSION

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Conclusion
KAMCO was established in the year 1973 as a wholly owned subsidiary of Kerala Agro Machinery Corporation Limited (KAIC) Trivandrum, for manufacture of agricultural machinery for specifically Power tillers and Diesel engines. It is an ISO 9001-2000 company. KAMCO has different units situated at Athani, Kalamassery, Palakkad, and Mala. The main products of the com pan y KAM C O P ower t i l l ers spi t e of t hreat from imported and

, P ower re apers and Di esel en gi ne. In

indigenous makes of Power tillers continues to be the preferred choice of farmers attaining the moderate market share for the year. Power reaper also had been able to catch the imagination of the small farmers the response for the newly launched DI super Power tiller is very encouraging diversification of products and service is an essential prerequisite for success. KAMCO is the 8thprofit making company in the state government. The Organisation study was helpful in getting an understanding of the OrganisationS t ruct ur e, vari ous dep art m e nt s and t hei r funct i o ns i n a fact or y and overal l ope rat i o ns of Organisation. The study enabled to collect much

more information about the Organisation and have helped in knowing the practical situation prevailing in the company.

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PHOTOS

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