ORGANIZATION STUDY OF

KANAN DEVAN HILLS PLANTATIONS COMPANY (P) LIMITED

Submitted in partial fulfillment of the requirements
for the aard of the De!ree of
"AST#R OF $USIN#SS AD"INISTRATION
Of the "ahatma Gandhi Uni%ersit&'
Submitted b&
ANOO( "O)AN
Re!n No* +,,+,-
Under the !uidan.e of
A/()ONS# "ARIA G#ORG#
0une +-,,
D1 S.hool of "ana!ement and Te.hnolo!&
(ulli22anam3 4a!amon3 Idu22i 5677-8
Tel* -965: ; +968++3 +968+8
,
D#1/ARATION
I hereb& de.lare that the or!ani<ation stud& of =>ANAN D#4AN )I//S
(/ANTATION (4T /TD? submitted to "ahatma Gandhi Uni%ersit& is a
re.ord of the ori!inal or2 done b& me and no part of it has been submitted
earlier for an& De!ree3 (ost Graduation or similar of an& other uni%ersit& or
institution'
(la.e* (ulli22anam
Date Name* ANOO( "O)AN
+
1ertifi.ate on D1S"AT /etterhead
1#RTIFI1AT#
This is to .ertif& that the or!ani<ation stud& titled ORGANIZATION STUDY OF
KANAN DEVAN HILLS PLANTATIONS PVT LTD is a bonafide re.ord of the or2
done b& Anoop "ohan3 8rd semester "$A Student of D1 S.hool of "ana!ement and
Te.hnolo!&3 submitted in partial fulfillment of the requirements for the aard of the
"asters De!ree in $usiness Administration of "ahatma Gandhi Uni%ersit&3 >otta&am3
>erala'
Fa.ult& Guide (rin.ipal
Date*
(la.e* (ulli22anam
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
@
Examiner I Examiner II
Si!nature
Name
Date
Si!nature
Name
Date
Institution
Seal
8
Certificate from the Coman!
9
ACKNO"LED#EMENT
I ould li2e to ta2e this opportunit& to eApress m& sin.ere
!ratitude to all those ho ha%e helped me throu!hout this or!ani<ational
internship stud&' It !i%es me immense pleasure to a.2noled!e all those
ho ha%e rendered en.oura!ement and support for the su..essful
.ompletion of this or2'
I eApress m& heartfelt than2s to Mr$ SAN%ITH P &A%'3 ASSISTANT
"ANAG#RB)U"AN R#SOUR1# D#(ART"ANT( KANAN DEVAN
HILLS PLANTATIONS COMPANY for his .onstant en.oura!ement and
support durin! the entire proCe.t or2'
I also eAtend m& sin.ere !ratitude to Mi) ALPHONSE MA&IA #EO&#E(
fa.ult&3 DC SCHOOL O* MANA#EMENT AND TECHNOLO#Y(
P+,,i--anam hose ad%i.e and !uidan.e helped me in the su..essful
.ompletion of this stud&'
ANOOP MOHAN

7
1ONT#NT
1hapters Title (a!e No'
1hapterB, Introdu.tion 6B,-
1hapterB+ Industr& profile ,+B,8
1hapterB8 1ompan& profile ,7B++
1hapterB9 ("S and #$O +9B+7

1hapterB7 "ana!ement stru.ture at >D)( +DB+:
1hapterB5 Department profile 8,B98

1hapterBD 1orporate so.ial responsibilit& 97B95
1hapterB6 #n%ironment and sustainable de%elopment 96
1hapterB: SEOT anal&sis 7-B7,
1hapterB,- 1on.lusion and Re.ommendation 78B79


5

CHAPTER 1
INTRODUCTION
.
INT&OD'CTION

An or/ani0ation is a so.ial arran!ement hi.h pursues .olle.ti%e !oals3
.ontrols its on performan.e3 and has a boundar& separatin! it from its
en%ironment' "ana!ement is interested in or!ani<ation mainl& from an
instrumental point of %ie' For a .ompan&3 or!ani<ation is a means to an
end to a.hie%e its !oals B hi.h are to .reate %alue for its sta2eholders
Fsto.2holders3 emplo&ees3 .ustomers3 suppliers3 .ommunit&G'
Or!ani<ational studies en.ompasses the stud& of
or!ani<ations from multiple %iepoints3 methods3 and le%els of anal&sis An
or!ani<ation stud& in%ol%es the stud& of the stru.ture and fun.tionin!
of its department' Or!ani<in! or or!ani<ation is one of the important
fun.tion of the mana!ement' Generall&3 all the or!ani<ations are different
but3 the& ha%e .ertain .ommon features' The& are !roup of people lin2ed
to!ether b& formal and informal relationship3 in hierar.hi.al order that
are en!a!ed in .oBoperati%e a.ti%ities and e%er&one has identi.al
boundaries' So the stud& of people in or!ani<ation is important for future
mana!er'
Ehene%er people intera.t in or!ani<ations3 man&
fa.tors .ome into pla&' "odern or!ani<ational studies attempt to understand
and model these fa.tors' /i2e all modernist so.ial s.ien.es3 or!ani<ational
studies see2 to .ontrol3 predi.t3 and eAplain' It is %ital to stud& the stru.ture
and fun.tionin! of su..essful or!ani<ation so the& ill !uide dire.torial
toards su..essful and profitable fun.tionin! The sift .han!es in the
field of s.ien.e and te.hnolo!& has re%olutioni<ed the or!ani<ational
s&stem' Su.h .han!es ha%e be.ome ine%itable to a.hie%e the basi. obCe.ti%e
of the firm' 6
IMPO&TANCE O* THE ST'DY
,' To familiari<e ith a business or!ani<ation'
+' To understand the operations of the %arious departments ithin the
.ompan&'
SCOPE O* THE ST'DY
Internship trainin! ill help "ana!ement !raduates to 2no about the
fun.tionin! of an or!anisation' It is a means for brid!in! the !ap beteen
theor& and pra.ti.e.
O1%ECTIVES O* THE ST'DY
,G To 2no about the tea industr& and its histor&'
+G To 2no about fun.tions .arried out in %arious departments'
8G To stud& the produ.ts of the .ompan&'
9G To stud& the stru.ture of %arious departments and its fun.tion'
7G To .arr& out a SEOT anal&sis of the or!ani<ation

:
ASS'MPTIONS O* THE ST'DY

This stud& is based on the folloin! Assumption
,G The data !i%en b& the .ompan& offi.ial are true and unbiased'
+G The data .olle.ted from %arious se.ondar& sour.es are true'
LIMITATIONS O* THE ST'DY
Allotted time span has been the main limitation'
TECHNI2'ES O* DATA COLLECTION
,' (RI"ARY DATA
Information?s ere .olle.ted b& .ondu.tin! personal inter%ies and
dis.ussions ith offi.ials3 emplo&ees of the .ompan& and also b& dire.t
obser%ation
+' S#1ONDARY DATA
The se.ondar& data .an be .olle.ted throu!h finan.ial re.ords3
brou.hers3 .ompan& re.ords et.'
Se.ondar& data are .olle.ted from*
Annual reports
1ompan& do.uments H
1ompan& ebsites'

,-
CHAPTER 2
INDUSTRY PROFILE
,,
TEA IND'ST&Y IN INDIA
The tea industr& in India is about ,D2 &ears old' It o..upies an important
(la.e and pla&s a %er& useful part in the national e.onom&' Robert $ru.e in
,6+8 dis.o%ered tea plants !roin! ild in upper $rahmaputra 4alle&' In
,686 the first Indian tea from Assam as sent to United >in!dom for publi.
sale' Thereafter3 it as eAtended to other parts of the .ountr& beteen 7-Is
and 5-Is of the last .entur&' )oe%er3 oin! to .ertain spe.ifi. soil and
.limati. requirements its .ulti%ation as .onfined to onl& .ertain parts of the
.ountr&' Tea plantations in India are mainl& lo.ated in rural hills and
ba.2ard areas of NorthBeastern and Southern States'

"aCor tea !roin! areas of the .ountr& are
.on.entrated in Assam3 Eest $en!al3 Tamil Nadu and >erala' The other
areas here tea is !ron to a small eAtent are >arnata2a3 Tripura3 )ima.hal
(radesh3 Uttaran.hal3 Aruna.hal (radesh3 "anipur3 Si22im3 Na!aland3
"e!hala&a3 "i<oram3 and Bihar' Unli2e most other tea produ.in! and
eAportin! .ountries3 India has dual manufa.turin! base' India produ.es both
1T1 and OrthodoA teas in addition to !reen tea' The ei!hta!e lies ith the
former due to domesti. .onsumers? preferen.e' OrthodoA tea produ.tion is
balan.ed basi.all& ith the eAport demand' (rodu.tion of !reen tea in India
is small' The .ompetitors to India in tea eAport are Sri /an2a3 >en&a3 1hina3
Indonesia and 4ietnam'
Tea is an a!roBbased .ommodit& and is subCe.ted to
%a!aries of nature' Despite ad%erse a!ro .limati. .ondition eAperien.ed in
tea !roin! areas in man& &ears3 Indian Tea (lantation Industr& is able to
maintain substantial !roth in relation to %olume of Indian tea produ.tion
durin! the last one de.ade' There has been a dramati. tilt in tea disposal in
fa%or of domesti. mar2et sin.e fifties' Ehile at the time of Independen.e
onl& D: "'>!s or about 8,J of total produ.tion of +77 "'>!s of tea as
retained for internal .onsumption3 in +--8 as mu.h as 802 "'>!s or about
62J of total produ.tion of 981 "'>!s of tea ent for domesti.
.onsumption' Su.h a massi%e in.rease in domesti. .onsumption has been
due to in.rease in population3 !reater urbani<ation3 in.rease in in.ome and
standard of li%in! et.' Indian tea eAport has been an important forei!n
eA.han!e earner for the .ountr&'
,+
There as an inherent !roth in eAport earnin!s from tea o%er the &ears' Till
D-s?3 U> as the maCor bu&er of Indian tea Sin.e 6-s? USSR be.ame the
lar!est bu&er of Indian tea due to eAisten.e of the trade a!reement beteen
India and ersthile USSR' USSR happened to be the maCor bu&er of Indian
tea a..ountin! for more than 7-J of the total Indian eAport till ,::,'
)oe%er3 ith the disinte!ration of USSR and abolition of 1entral $u&in!
"e.hanism3 Indian tea eAports suffered a setba.2 from ,::+B:8' )oe%er3
Indian Tea eAports to Russian .ountries re.o%ered from the setba.2 sin.e
,::8 under Rupee Debt Repa&ment Route fa.ilities as also due to lon! term
a!reement on tea entered into beteen Russia and India' Depressed s.enario
a!ain started sin.e +--, due to .han!e in .onsumption pattern3 i'e' sit.h
o%er from 1T1 to OrthodoA as per .onsumer preferen.e and thus India has
lost the Russian mar2et' Another reason for de.line in eAport of Indian tea to
Russia is offerin! of teas at loer pri.es b& 1hina3 South Asian .ountries
li2e Indonesia and 4ietnam'
The maCor .ompetiti%e .ountries in tea in the
orld are Sri /an2a3 >en&a3 1hina and Indonesia' 1hina is the maCor
produ.er of !reen tea hile Sri /an2a and Indonesia are produ.in! mainl&
orthodoA %arieties of tea' >en&a is basi.all& a 1T1 tea produ.in! .ountr&'
Ehile India is fa.in! .ompetition from Sri /an2a and Indonesia ith re!ard
to eAport of orthodoA teas and from 1hina ith re!ard to !reen tea eAport3 it
is fa.in! .ompetition from >en&a and from other Afri.an .ountries in
eAportin! 1T1 teas' $e.ause of absen.e of lar!e domesti. base and due to
.omparati%el& small ran!e of eAportable items3 Sri /an2a and >en&a ha%e
an ed!e o%er India to offload their teas in an& international mar2ets' This is
one of the reasons of hi!her %olume of eAport b& Sri /an2a and >en&a
.ompared to India' Another important point is that3 U'> has substantial
interest in tea .ulti%ation in >en&a'
"ost of the sterlin! .ompanies3 after the
implementation of F#RA A.t started tea .ulti%ation in >en&a' So3 it ma2es
business sense for U'>' to bu& tea from >en&a and >en&a be.ame the
lar!est supplier of tea to U'>' Tea is an essential item of domesti.
.onsumption and is the maCor be%era!e in India' Tea is also .onsidered as
the .heapest be%era!e amon!st the be%era!es a%ailable in India' Tea
Industr& pro%ides !ainful dire.t emplo&ment to more than a "illion or2ers
are mainl& dran from the ba.2ard and so.iall& ea2er se.tion of the
so.iet&' It is also a substantial forei!n eA.han!e earner and pro%ides si<eable
amount of re%enue to the State and 1entral #A.hequer'
,8

CHAPTER 3
COMPANY PROFILE
,9
COMPANY HISTORY
India bein! one of the lar!est produ.ers and eAporters of tea in the orld
represents a unique model of plantation a!ri.ulture' )U/ .ontrols nearl&
9-J of pa.2ed tea mar2et in India folloed b& TG$ ith a mar2et share of
+,J ' Traditionall&3 Indian tea as rated as one of the best in the orld and
therefore3 as enCo&in! a !ood eAport mar2et' $ut sin.e last fe &ears3 the
tea industr& has been in a perilous position ith eA.ess of produ.tion3
de.linin! pri.es for its produ.ers and se%ere .ompetition from the rest of the
orld'

The risin! .ost of produ.tion ith fallin! pri.es made bi! tea .ompanies sell
the plantations and eAit from tea .roppin! a.ti%it&' Ehile )U/ sold its tea
plantations to some pri%ate parties3 TT/ in their South Indian (lantation
Operations FSI(OG in "unnar folloed a unique model of sellin! the
plantations to the emplo&ees of the .ompan&' A fe &ears ba.2 in +--73 the
.ompan& had .arried out the emplo&eeBbu&Bout F#$OG leadin! to the birth of
>anan De%an )ills (lantations 1ompan& F(G /imited F>D)(1(/G3 hi.h is
.onsidered as a milestone in the histor& of tea plantations in India' Nearl& all
,83--- emplo&ees of the or!anisation be.ame the shareholders of the ne
.ompan&'

In sharp .ontrast to the situation in the tea industr& eAperien.in! .losures
affe.tin! thousands of emplo&ees3 >D)(1(/ .ould not onl& re.o%er ithin
a &ear the loss of Rs ,8 .rore run up b& TT/3 but .ould also re!ister a post
taA surplus of Rs +'8D .rore as on 8, "ar.h +--5' The ne .ompan& as
unique in its model' The notion of parti.ipator& mana!ement F("SG as enB
tren.hed in the %er& obCe.ti%es3 %ision and mission statements of the
.ompan&' This seemed to be a radi.al shift from the past here the
mana!ement of tea plantations itnessed a t&pi.al hierar.hi.al topBdon
approa.h'
,7
KANAN DEVAN HILLS PLANTATIONS COMPANY (P) LIMITED
The >anan De%an )ills (lantations 1ompan& (ri%ate /imited F>D)(G
su..eeded Tata Tea /imited on ,st April +--73 hen the latter eAited most
of its plantations in "unnar to fo.us on the !roth of its branded tea
business' Eith its D eAtensi%e !ardens .o%erin! approAimatel& +93---
he.tares3 the .ompan& is toda& the lar!est tea .orporate in South India ith
an annual produ.tion of +, million 2! of tea' 4irtuall& all its ,+3--- B plus
emplo&ees are its shareholders'
The .ompan& is full& .ons.ious of the so.ial obli!ations to its emplo&ees as
ell as the publi. at lar!e and spares no effort to fulfill these3 often ell
eA.eedin! the statutor& requirements' Further3 it is stron!l& .ommitted to
preser%in! the fra!ile e.olo!& and ri.h bioBdi%ersit& of the area in hi.h it
operates.
The .ompan& funds important initiati%es and a.ti%ities of the )i!h Ran!e
Eildlife and #n%ironment (reser%ation Asso.iation3 e%ol%ed spe.ifi.all& for
a .omprehensi%e en%ironment mana!ement and sustainable de%elopment3 of
the )i!h Ran!es' All the offi.ers of the .ompan& are members3 and sele.ted
fe are desi!nated as )onorar& Eardens of spe.ifi. areas under their
operation'
The efforts ta2en b& the asso.iation in prote.tin! the flora and fauna of the
)i!h Ran!es is a ell re.o!ni<ed fa.t b& the state forest offi.ials3 to the
eAtent that3 e%en toda& the #ra%i2ulam National (ar23 an en%ironmental
hotspot is under the Coint mana!ement of the asso.iation and the >erala
Forest Department' The .ompan& also has underta2en eAtensi%e shola
re!eneration and reCu%enation pro!rammes to maintain the e.o balan.e of
the area'
,5
MISSION O* KDHP
To produ.e a .onsistentl& hi!h qualit& produ.t3 eA.eedin! .ustomer
eApe.tations3 at the loest .ost and .reatin! an en%ironment for or2
eA.ellen.e3 ensurin! sustained !roth ith .ommitment toards so.ial and
en%ironmental %alues'
VISION O* KDHP
To .olle.ti%el& .reate a unique and sustainable business ith the
.ommitment and in%ol%ement of all the emplo&ees as partners'
VAL'ES O* KDHP
To .ondu.t our business ith .omplete transparen.& hile aimin! for
treatin! people ith .are and .ompassion
KDHP NE"S
The >D)( nes is the in house ma!a<ine of the .ompan& hi.h is
published ti.e in a &ear'
,D
TEA #A&DENS AND *ACTO&IES O* KDHP
The tea !ardens of >D)( is spread around D estates' The& are*
1hunda%urrai
Gunderale
Gundumalla&
/et.hmi
"adupatt&
Nullatani
N&ama2ad
The >D)( 1ompan& is ha%in! ,5 fa.tories' Amon! these D are orthodoA
teas produ.in! fa.tories and : are .t. F.rush tear .urlG tea produ.in!
fa.tories'
The& are*
Ari%i2ad B ODK
1hitta%urrai ; ODK
1ho2anad B 1T1
1hunda%urraiBODK
De%i2ulamBODK
GunderaleB1T1
Gundumalla&B1T1
>adalaarBODK
>alaarB1T1
>anniamalla&B1T1
/et.hmiB1T1
"adupatt&B1T1
(eria%urraiB1T1
Thenmalla&BODK
4a!a%urraiB1T1
Yellapatt&BODK

,6
KDHP SALES O'TLET
A ide %ariet& of produ.ts are a%ailable in the eA.lusi%e sales outlet
operated b& >D)( 1ompan&' The Tea and non tea produ.ts a%ailable in the
outlet are*
Tea ro3+ct)
Fa.tor& fresh teas
Fla%ored teas
RTD miA Fread& to drin2G
Ehite tea
Or!ani. tea
Non tea ro3+ct)
Dr& fruits
Grape seed
1ho.olate preser%es
Spi.es
Rose oil
Almond
1ashe
,:
NON TEA OPE&ATIONS O* KDHP
The .ompan& is also ha%in! some non tea operations hi.h in.lude*
Tea m+)e+m
This is the .ountr&?s first e%er tea museumL lo.ated at >D)(?s Nullatanni
estate in "unnar' The thousands of tourists ho %isit "unnar for si!htseein!
.an .arr& home impressions of the distant past of this tea plantin! distri.t in
Idu22i?s hi!h ran!es' The aim of the tea museum is to depi.t the !roth of
these moreBthanBaB.entur&Bold tea plantations3 from the rudimentar& tea
roller to the present full& automated tea fa.tor& of "adupatt&' It also !i%es
firsthand 2noled!e to tourists about tea pro.essin! and the operations that
!o into the ma2in! of bla.2 tea'
Aromatic ,ant)
On the an%il is a fora& in the field of rasin! %arious aromati. plants' The
.ompan& is in an ad%an.ed sta!e of propa!atin! rose3 !eranium3 Rosemar&3
1hamomile3 1lar&sa!e3 1&pruss3 A.a.ia and #u.al&ptus3 Globulous and
1itradora plants for eAtra.tion3 distillation and sale'
Veti4er in tea ,antation)
The 1ompan& is a pioneer in adoptin! 4GT F%eti%er !rass te.hnolo!&G
in tea plantations and .arried out eAtensi%e studies on %arious
aspe.tsMappli.ations of the same' 4eti%er as introdu.ed in tea plantations
of the )i!h Ran!e F>eralaG3 south India for pre%entin! soil erosion and
moisture .onser%ation b& the RHD Department' Use of this te.hnolo!& b&
establishin! li%e hed!es of %eti%er !rass resulted in repla.ement of
.on%entional re%etments for soil and moisture .onser%ation' Ehen planted
as a .ontour hed!e it a.ts as a .ontinuous filterin! s&stem that slos don
rainfall runoff resultin! in redu.tion of rillin! and !ull&in!3 and .olle.ts soil
sediments at the hed!e fa.e'
Soil and nutrient loss is redu.ed3 soil moisture and !round ater impro%es
si!nifi.antl&3 and natural terra.es and !round le%elin! de%elops behind the
hed!e' An important feature is that 4eti%er !rass ta2es up minimal spa.e and
is %irtuall& non .ompetiti%e ith adCa.ent .rops' A !ermplasm ith more
than 9- .ulti%ars .olle.ted from %arious sour.es has been established and
their suitabilit& for %arious te.hni.al appli.ations is bein! studied
periodi.all&
+-
1io ferti,i0er an3 contro, a/ent)
>D)( 4ermiderma is a an unique bioBformulation prepared ith hi!h
qualit& 4ermi.ompost prepared s.ientifi.all& from spent tea lea%es enri.hed
ith Tri.hoderma %iride hi.h is a pro%en nonBpatho!eni. and e.ofriendl&
mi.robe hi.h .an .ontrol man& patho!en .ausin! dampin! off3 root rot3
rhi<ome rot3 stem rot and ilt in man& .rop spe.ies' It .an be applied usin!
the appli.ation method des.ribed to most food .rops !ron in !reen house3
shade houses and a!ri.ultural fields' The presen.e of desired nutrients in the
.arrier material ill enhan.e the multipli.ation and %iabilit& of Tri.hoderma
and the number of 1olon& formin! units F1FUsG ill in.rease unli2e other
tal.Bbased produ.ts'
Sa,e) o+t,et
The first one bein! atta.hed to its .orporate offi.e displa&s the .ompan&?s
eAtensi%e line of produ.ts for pur.hase' Its lo.ation ith plent& of par2in!
ma2es it a .on%enient shoppin! outlet for %isitors and tourists' The sales
staff ith their thorou!h 2noled!e of the produ.ts .an help the .ustomers
ith their .hoi.e3 from a ide produ.t ran!e that in.lude 4ariet& of tea li2eB
OrthodoA3 1T13 Green3 Or!ani.3 Fla%ored3 Ehite Tea et.' The other outlets
are lo.ated at RaCamalla& one of the maCor tourist attra.tions in "unnar and
at "aduraiB the Temple 1it& in Tamil Nadu'

+,
O&#ANISATIONAL ST&'CT'&E

"ANAGING DIR#1TOR
)#AD FA1TORY O(#RATIONS )#AD FI#/D O(#RATIONS
>A/A"ASS#RY (/ANT
NONBT#A O(#RATIONSH FU#/ H $ROUG)T /#AF O(#RATION
FINAN1# HSYST#"S AND "ISD
>A/A"ASS#RY (/ANT
"AR>#TING D#(ART"#NT
>A/A"ASS#RY (/ANT
$OARD OF DIR#1TORS
++

CHAPTER 4
PMS AND EBO
INDUSTRIA/ R#/ATIONS D#(ART"#NT
>A/A"ASS#RY (/ANT
)U"AN R#SOUR1# D#(ART"#NT
>A/A"ASS#RY (/ANT
#NGIN##RING D#(ART"#NT
"D S#1R#TARIAT#
>A/A"ASS#RY (/ANT
NUA/ITY 1ONTRO/ D#(ART"#NT
>A/A"ASS#RY (/ANT
R#S#AR1) AND D#4#/O("#NT D#(ART"#NT
>A/A"ASS#RY (/ANT
(UR1)AS# H /OGISTI1S D#(ART"#NT
>A/A"ASS#RY (/ANT
AD"INISTRATION H /#GA/ D#(ART"#NT
>A/A"ASS#RY (/ANT
+8
EMPLOYEE 1'Y O'T (E1O)
#$O .an be defined as a transa.tion in hi.h the emplo&ees of a business
Coin ith the finan.in! institutions to bu& the business from its present
oners' The hi!hli!hts of #$Os in the past ha%e demonstrated substantial
in.rease in moti%ation3 parti.ipation3 produ.ti%it& and profitabilit& in the
or!ani<ations folloin! an #$O' The report further reinstates that an #$O
model ma& not be appropriate under all situations' A illin! seller3 an
effe.ti%e emplo&ee team ith .apable mana!ement and a finan.iall& %iable
proposition are .riti.al su..ess fa.tors for #$O'
#laboratin! the abo%e3 the oners ma& be for.ed to sell the .ompan& due to
an& of the folloin! reasons ; retirement3 reali<ation of in%estment3
di%estment3 and business in distress or pri%ati<ation' An #$O mi!ht also be
.arried out throu!h an #mplo&ee Share Onership (lan F#SO(G or mi!ht
result in a .ooperati%e or a pri%ate limited .ompan&' The stud& supports
man& ar!uments in fa%or of an #$O' First3 the fa.t that the emplo&ees ha%e
a share in the .ompan&?s su..ess leads to in.reased moti%ation and morale
of the emplo&ees' Se.ond3 equall& happ& ould be the eAistin! oner of the
business on sellin! the business to people ho ha%e been a part of the
business and are most li2el& to .ontinue ith the .ompan&?s traditions'
Third3 the or2for.e and the status quo
of the .ompan& are maintained3 eliminatin! the un.ertaint& arisin! from
sellin! the business to an outside part&' Fourth3 an #$O is also so.iall&
supporti%e3 in the sense that ealth is spread a.ross a lar!er number of
people' The s&stem .an also raise more equit& hi.h ould result in the
transa.tion bein! less dependent on eAternal debt finan.in!'
+9
PA&TICIPATO&Y MANA#EMENT ST&'CT'&E
(arti.ipati%e mana!ement has been broadl& adopted as a strate!& in
or!ani<ational de%elopment herein it not onl& en.oura!es or2ers to
identif& ith their on duties and impro%e their performan.e but is also seen
as a me.hanism to enhan.e the performan.e of the .ompan&' Robbins
F,::,G defines parti.ipati%e mana!ement as a 2ind of mana!ement st&le in
hi.h the subordinates share a si!nifi.ant de!ree of de.isionBma2in! poer
ith their super%isors' (arti.ipator& mana!ement .an o..up& three distin.t
forms of interpretations' First3 it .an be seen as a so.ioBpoliti.al .on.ept of
industrial demo.ra.& under hi.h the onership is %ested in emplo&ees
hose business is mana!ed b& emplo&ees or a !roup ele.ted b& emplo&ees
themsel%es'
Forms in%ol%in! or2er dire.tors3 .olle.ti%e a!e earner funds and or2er
.ooperati%es fall ithin this .ate!or&' Se.ond3 parti.ipation is %ieed as a
term to represent the pro.esses and institutions hi.h in%ol%e subordinate
emplo&ees in one or more aspe.ts of or!ani<ational de.isionBma2in! li2e
simple information !i%in! or Coint .onsultation and re!ulation' Third3 it ma&
denote a distin.t e%olutionar& de%elopment to promote !reater emplo&ee
influen.e ithin the or!anisation' The tan!ible dimension of parti.ipator&
mana!ement in.ludes parameters li2e produ.ti%it&3 qualit& of produ.t3
turno%er rate3 absenteeism rate and labour mana!ement dispute rate'
The intan!ible dimension in.ludes or2 morale3 or!ani<ational .limate3
emplo&ee moti%ation and Cob satisfa.tion' It is a..omplished b& man&
authors that parti.ipator& mana!ement has a positi%e effe.t on or!ani<ational
performan.e' It as seen that parti.ipation in mana!ement promoted
or!ani<ational morale and or2 moti%ation hi.h has a dire.t impa.t on
or!ani<ational performan.e' In addition3 parti.ipator& mana!ement is said to
redu.e labour mana!ement disputes and benefit o%erall or!ani<ational
effe.ti%eness'
Sin.e emplo&ees are !i%en more poer under parti.ipati%e mana!ement to
eApress opinions in the de.isionBma2in! pro.edure3 the& are more li2el& to
.arr& out the de.isions made3 to a..ept te.hni.al .han!es and adopt
inno%ations' (arti.ipator& mana!ement is a !ood a& to a.hie%e lon!Bterm
emplo&ee satisfa.tion in terms of turno%er3 absenteeism and a positi%e state
of mind of the indi%idual emplo&ees'
+7
CHAPTER 5
MANAGEMENT STRUCTURE
+5
PA&TICIPATO&Y MANA#EMENT ST&'CT'&E AT KDHP
The ne .ompan& had adopted a unique model hi.h is the first of its 2ind
as far as the plantation se.tor in the .ountr& is .on.erned' The notion of
parti.ipator& mana!ement as embedded in the %er& obCe.ti%es3 %ision and
mission statements' The spe.ifi. obCe.ti%es for the fun.tionin! of the
.ompan& in.lude pro%idin! emplo&ees a better understandin! of their role
and importan.e in the or2in! of the .ompan&3 to in%ol%e all le%els of
emplo&ees in the de.isionBma2in! pro.ess hereb& a sense of onership is
fostered and their ur!e for self eApression is satisfied'
This seems to be a radi.al shift from the past here the mana!ement of tea
plantations itnessed hierar.hi.al topBdon approa.h' Ehat !a%e >D)(1/
a trul& parti.ipator& nature ere fa.ts li2e 56J of its shares held b& nearl&
,+399, emplo&ees3 a or2ers? representati%e and a staff representati%e on
the board of dire.tors3 and se%eral ad%isor& and .onsultati%e parti.ipator&
mana!ement .ommittees ; .omprisin! a .ross se.tion of emplo&ees ; at
e%er& le%el of fun.tionin! of the .ompan&' "ost of the estates3 under the
Tata?s3 had been run b& estate mana!ers ho in .har!e ere responsible for
the mana!ement of plantations of TT/' $ut under >D)(1/3 the
mana!ement plan as bottom up di%ertin! from the traditional topBdon
approa.h'
(arti.ipator& mana!ement s&stem as made fun.tional throu!h a set of
.ommittees .onsistin! of representati%es of all .ate!ories of shareholdin!
emplo&ees at di%isionMfa.tor&3 estate and the .ompan& le%els' The
membership to the .ommittees as limited to those emplo&ees ho are
shareholders of the .ompan& ho had to assume definite
ad%isor&M.onsultati%e roles under the parti.ipator& mana!ement' A total of
6+ Di%isional Ad%isor& 1ommittees FDA1sG and ,5 Fa.tor& Ad%isor&
1ommittees FFA1sG are fun.tionin! at present' At the se.ond le%el there are
0oint #state 1onsultati%e 1ommittees F0#11G and 0oint Fa.tor& 1onsultati%e
1ommittees F0F11G and at the apeA le%el is the 1entral "ana!ement
1ommittee F1"1G' The mana!in! dire.tor of the .ompan& is the .on%ener
of 1"1' The DA1 and the FA1 are at the !rassBroots of the fun.tionin! of
the estatesMfa.tories' The& .omprise siA members3 to omen or2ers and
to men or2ers3 one staff and one assistant mana!er or mana!ement
assistant' The members ere to be ele.ted b& se.ret ballot from the
di%isionMfa.tor& ith the term of offi.e for three &ears' The meetin!s of the
.ommittees are held on.e in a month on a predetermined da&'
+D
The fun.tions of DA1 in.lude monthl& or2 plannin!3 manpoer
deplo&ment3 adheren.e to field poli.ies3 re%ie of effi.ien.ies3 material
requirement and the follo up on a.tion plan' In addition the DA1 ould
dis.uss on .ertain aspe.ts of elfare and safet& measures ensurin!
.ontinuous ater suppl&3 sanitation3 other in.ome !eneratin! opportunities3
et.' Similarl&3 the FA1 as held responsible for ma2in! fortni!htl& or2
plannin!3 manpoer deplo&ment3 and update on material requirement for the
fa.tor&3 re%ie the effi.ien.& parameters and ensure that standardi<ation
norms su.h as )A11( are adhered to' The DA1MFA1 as to .oordinate
ith Coint estateMfa.tor& .onsultati%e 1ommittees'
The representati%es of DA1MFA1 ere to be nominated to these .ommittees
of hi.h the estateMfa.tor& mana!er as the .on%ener' The 0#11 .omprises
of ,DB+5 membersL 5B,8 fieldor2ersMsuper%isors3 to field staff3 one
medi.al offi.er3 three to fi%e assistant mana!erM"A3 one mana!er3 one
elfare offi.er3 one offi.e staff and one dri%er and a bla.2smith' It is seen
that three to siA omen or2ers represent in the .ommittee' To ensure full
and equal parti.ipation of the members of all DA1s in 0#113 their
membership to this .ommittee ill be on rotation basis3 hose period of
representation ill not eA.eed more than a fe months at a time3 as de.ided
b& the .on%ener of this .ommittee' In the area of operations the 0#11 had to
set its on tar!ets ithin the appro%ed bud!ets and anal&<e reasons for
shortfall hile re%iein! the tar!ets and ma2e plans a..ordin!l& for
impro%in! the same' It also had to loo2 into the statutor& .omplian.e and
monitor and .urtail absenteeism amon! the or2ers'
In addition the 0#11 had to implement the re.ommendations and de.isions
of the 1"1 or the sub.ommittees formed b& the 1"1' The elfare
measures re.ommended b& the DA1s ere to be re%ieed b& the 0#11
hile or!ani<in! and monitorin! the elfare promotional a.ti%ities to
impro%e health3 h&!iene and sanitation of the estate population and prote.t
the en%ironment' Similarl&3 the 0F11 .omprisin! :B,+ members ith the
fa.tor& mana!er as the .on%ener had to ta2e steps ne.essar& at fa.tor& le%el
to promote Rationali<e produ.tion3 impro%e methods3 la&out and pro.esses3
impro%e produ.ti%it&3 eliminate aste3 eliminate defe.ti%e or2 and
impro%e the qualit& of produ.ts3 impro%e the up2eep and .are of ma.hiner&3
tools and instruments'
+6
These to .onsultati%e .ommittees ould report to the 1"1 hi.h ould
.omprise dire.tors representin! the or2ersMsuper%isorsMnonBstaffMstaff and
heads of 2e& departments li2e sales3 tea produ.tion3 industrial relations FIRG3
finan.e and nonBtea produ.tion' The 1"1 .omprised ,, members' One
dire.tor from or2ersMsuper%isors3 to dire.tors from mana!ement staff3
to tea produ.tion heads3 one sales heads3 mana!in! dire.tor3 one IR head3
one nonBtea produ.tion head3 one finan.e head and one dire.tor from
staffMnonBstaff' The term of offi.e is for three &ears' The 1"1 met on.e in a
quarter to stud& operational results and ad%ise on the o%erall performan.e of
the .ompan&' The 1"1 had to ad%ise the .ompan& on all matters
.on.ernin! the or2in! of the industr& in the fields of produ.tion and of
emplo&ee elfare and to ad%i.e on an& other matter referred to it b& the
0#11s and the 0F11s' )oe%er3 lar!er issues li2e a!esMsalaries3
alloan.es3 et.3 are outside the pur%ie of dis.ussion in these meetin!s'
Other than the .ommittees set up for the routine fun.tionin! of the
plantations and the fa.tories3 the 1"1 appoints ,5 subB.ommittees to set up
for di%ersifi.ation and meetin! spe.ial purposes hi.h .omprised members
at all le%els of emplo&ment' This pro%ided for dire.t representation of
problems in those areas in the 1"1' The re.ords of the meetin!s of all the
.ommittees ere ell maintained and monitored and ere s.rutini<ed b& the
hi!her authorities at e%er& sta!e of fun.tionin!' The s&stem thus pro%ided
for parti.ipator& mana!ement3 but ith a hierar.hi.al a..ountabilit&'
+:

CHAPTE& 5
DEPA&TMENT P&O*ILE
8-
TEA MAN'*ACT'&E DEPA&TMENT
The operations and the produ.tion of all the ,5 fa.tories i'e'3 D orthodoA and
: 1T1 fa.tories fall under this department'
The main fun.tions of the department are*
Preparation of monthly manufacturing and disposal
plan for each factory
Responsible for proper implementation of the
manufacturing policy
Preparation of yearly and mid-term manufacturing plan
for own and bought leaf
early maintenance of the factories
!arries out an annual inspection of all the factories on
which a detailed report for each factory is made
"t monitors stoc# mo$ement from the factories on a
daily basis
Responsible for any en%uiries relating to production
from any of the factories
&onitoring grade percentage and outturn achie$ed by
each factory
'he department generates statements on(

)aily statement on factory-wise stoc#
* fortnightly report on grade percentage
&onthly stoc# chec# report
&onthly statement of waste percentage of
made tea to green leaf
+ortnightly report on sifted tea outturn
8,
*IELD DEPA&TMENT
The department is mainl& responsible for preparation and implementation of
all a!ri.ultural poli.& and pra.ti.es hi.h in.ludes*
(reparation of !uidelines for estates re%enue bud!ets as ell as
%erifi.ations
Responsible for midBterm re%ision of bud!ets
Annual inspe.tion of all the D estates is .arried out b& this department
folloed b& a detailed report
)andlin! .apital eApenditure of all the estates
Dail& handlin! of leaf di%ersions to the different fa.tories from the
estates dependin! on the fa.tories and mar2et requirements based on
the manufa.turin! plan
Dependin! upon plantin! and infillin! requirements for all the estates3
plant allo.ation is done from this department
All tea board inspe.tions and san.tions for subsid& are loo2ed after b&
this department
This department .ondu.ts inBhouse trainin! pro!rams on a!ri.ultural
pra.ti.es for mana!ement staff as ell as !eneral staff3 super%isors
and or2ers'
Or!ani<in! and .ondu.tin! trainin! pro!rams for ne assistants
A .onsiderable amount of da& to da& .orresponden.e beteen the
department3 estate and other departments is handled
Generation of reports on fuel operation poli.ies implementation and
monitorin!3 fellin! and plantin! pro!rams3 allo.ation of fireood to
fa.tories and estates and interBestate transfer of fireood
8+
NON TEA OPE&ATIONS DEPA&TMENT
Thou!h tea produ.tion is >D)(?s mainsta&3 to insulate itself a!ainst the
%a!aries of the tea mar2et and to sustain its profitabilit&3 the .ompan& too2 a
strate!i. step to di%ersif& into other a!ri.ultural as ell as nonBa!ri.ultural
a.ti%ities' Some of these proCe.ts in.lude plantation tourism3 flori.ulture3
horti.ulture3 medi.inal and Aromati. plant propa!ation and fuel operations'
The fun.tions of this department areL
All matters related to the non tea operations
"atters related to the sales outlet atta.hed to the .orporate offi.e as
ell as at RaCamalla& and at "adurai
The tea museum lo.ated at Nullatanni estate is been promoted as a
maCor attra.tion and is under this department'
Fireood for the fa.tories is arran!ed b& this department

88
*INANCE DEPA&TMENT
Finan.e is the life blood of business' It ri!htl& termed as the s.ien.e of
mone&' Eithout adequate finan.e3 it is impossible for an& business firm to
.arr& out its a.ti%ities' The term finan.e refers to mone& or funds a%ailable
to a firm' There is a ne.essit& of mana!in! the funds properl& and effi.ientl&
for a.hie%in! the obCe.t of the business' Finan.ial a.ti%it& is .on.erned ith
the plannin! and .ontrollin! of the firm finan.ial resour.es' $usiness finan.e
is .on.erned ith the a.quisition and utili<ation of funds in a business
enterprise' It in%ol%es raisin! the needed funds3 Cudi.ial use of funds and
.ontrollin! the funds used in business' Finan.ial mana!ement is an inte!ral
part of the o%erall mana!ement' This department handles all matters relatin!
to estates and .ompanies a..ountin! pro.edures and finan.ial reportin!' The
fun.tions of the departments*
All taAes related or2s filin! of returns3 in.ome taA3
>GSTM1STM4AT3 et.
#state fund mana!ement
(a&roll preparation and re.on.iliation of all the departments
Department bud!etin!
Audit reports
All sto.2 a..ounts re.on.iliation
(F re.on.iliation for all staff
Gratuit& returns
1urrent bill .olle.tion and a..ountin!
Sundr& debtor and .reditor?s led!er maintenan.e
$uildin! fee .olle.tion from "unnar ton
Telephone bills remittan.e and re.on.iliation
InterBestate a..ounts and re.on.iliation
0ournal 2e&in!
Tea transfer re.on.iliation
0ob in%oi.e re.on.iliation

89
MA&KETIN# DEPA&TMENT
"ar2etin! bein! the most important it is .on.erned ith anal&<in! the
mar2et 3 dis.o%erin! the opportunities 3 formulatin! mar2etin! strate!ies 3
de%elopin! the spe.ial strate!ies and ta.ti.s3 proposin! a bud!et and
establishin! a set of .ontrol' Tea tradin! in the domesti. mar2et is done in
to a&s3 Au.tion and pri%ate sellin!' Au.tion sale is .onsidered to be the
best method for sale of tea be.ause tea is a .ommodit& ith infinite %ariet&
and ith ide spe.trum of bu&ers' The fun.tions of the departments areL
/oo2 for eAports
Send samples to %arious bu&ers and finali<e the blend pri.es for
eAports
/oo2 for tieBups for mar2etin! of our tea ith %arious .ompanies
Tr& to in.rease the sale throu!h other .hannels li2e .onsi!nments to
find alternate mar2ets
1losel& monitorin! of sto.2s at the fa.tories to ensure that there is
minimal sto.2 build up
To ensure pa.2in!3 blendin! and dispat.h of pol& pa.2s
To anti.ipate mar2et mo%ements to ensure the mo%ement of tea
ithout .ompromisin! on pri.es
To find ne mar2ets for %alue added teas li2e or!ani. tea3 !reen tea
et.
4isit mar2ets to !et feedba.2 from bu&ers and .ommuni.ate the
requirements to the fa.tories to maAimi<e the pri.es
87
IND'ST&IAL &ELATIONS DEPA&TMENT
This department handles all matters relatin! to the ser%i.e .onditions of the
emplo&ee3 dis.iplinar& a.tions3 industrial disputes et.' the fun.tions of the
department areL
All matters .on.ernin! appointment3 salar&3 frin!e benefits3 statutor&
benefits3 transfers3 retrials et. of all .ate!ories of emplo&ees'
1oBordinate handlin! of all le!al matters ith our le!al firms
(ostin! of a.tin! nurses for lea%e %a.an.ies in the estate hospitals
Determination of or2ers as ell as staff bonus and produ.ti%it&
/in2ed in.enti%es
Represents the mana!ement in .ase of an& industrial disputes
)andles e%i.tion .ases3 .ompensation .ases et.
1ondu.ts domesti. enquir& .ourses .o%erin! all estates on ho to
.ondu.t an enquir&
/iaison ith trade unions
1ondu.tin! DA1MFA1 et.'
All matters relatin! to se.urit& a!en.ies
Assistin! .ommunit& de%elopment and so.ial elfare or2s and
elfare a.ti%ities
Determination of parameters for plu.2in! in.enti%es s.hemes for ea.h
month
85
ADMINIST&ATIVE AND LE#AL DEPA&TMENT
This is the le!al department of the .ompan& and deals ith le!al3 land and
other le!islation at all le%el ith the !o%ernment' The fun.tions of the
department are*
)andlin! of all land matters .on.ernin! TG$ and >D)(
All .i%il3 .riminal and su.h others .ases related to >D)(
/and sur%e& and area .ertifi.ate preparation
(reparation of deeds and a!reements
All .entral eA.ise matters pertainin! to the .ompan&
Fa.tor& li.ense reneal
Reneal of petroleum li.ense
"ana!ement of staff profession taA
All matters relatin! to patent appli.ation3 ei!hts and measures3
pollution .ontrol a.ts and rules
"atters relatin! to hi!h ran!e estate s.hools
(an.ha&at buildin! taA and plantation taA
Insuran.e matters relatin! to all the estates
Road taA remittan.e3 .ompan& %ehi.les .he.2list
>D)( house .ash transa.tions
>D)( house emplo&ees lea%e re!ister
Forest passes appli.ation and all .onne.ted or2s
Filin! of >erala pa&ment of a!e returns
>erala fa.tories halfB&earl& returns and appli.ations of an&
amendments

8D
SYSTEMS DEPA&TMENT
The ultimate !oal of this department is .omplete automation of all s&stems'
(lantations bein! an industr& quite different from an& other industr&3 here
a!e ;old traditions still eAist3 a.hie%in! this .han!e seemed diffi.ult' Eith
this %ie in mind the .ompan& started a proCe.t .alled =TBSOFT? here the
sour.e data on.e entered should be a%ailable and rea.hable for e%er&one
hen needed' Thus under this s.heme ei!hin! ma.hines ere introdu.ed
and ea.h estate and fa.tor& offi.e as full& .omputeri<ed ith internet
fa.ilities' The maCor fun.tions of the department areL
"onthl& preparation of an effi.ien.& report of field and fa.tor&
"onthl& eApenditure anal&sis
"onthl& finan.ial reportin! to the "D and .hairman of the .ompan&
"onthl& !eneration of produ.tion re.on.iliation statement
Generatin! bud!et .ompilation statements
A..ountin! b& #D(
Generatin! pa&roll
All trouble shootin! eAer.ise of both softare and hardare
/endin! support to all the department
(ro%ider of intranet fa.ilit&
86

2'ALITY CONT&OL DEPA&TMENT
The qualitati%e assessment of tea .annot be determined b& an& .hemi.al
anal&sis3 e%en in toda&?s te.hnoBsa%%& orld there is no substitute for the
taster?s trained and sensiti%e taste buds3 in the e%aluation of the tea' The
main fun.tions of the department areL
#nd produ.t e%aluation based on %arious .riteria li2e dr& leaf3
appearan.e3 infusion and liquor stren!th'
Dail& tastin! sessions on the teas manufa.tured are underta2en and the
feedba.2 on the teas ith appro%als to %arious destinations is
informed to fa.tories throu!h dail& tastin! reports
Generates and .ir.ulates fortni!htl& and toBdate ran2in! reports
"onthl& settin! of ben.hmar2 and standard samples for au.tion mar2s
1ondu.ts monthl& bro2ers tea tastin! sessions
(reparation and e%aluation of blends and blendin! of teas based on the
mar2et requirements
Responsible for alloin! onl& qualit& teas to enter the mar2et
8:
H'MAN &ESO'&CE DEPA&TMENT
"an poer or human resour.es or people at or2 of an or!ani<ation
.onsists at all indi%iduals en!a!ed in an& of the or!ani<ation a.ti%ities
re!ard less of le%els' "anpoer is one of the primar& resour.es' (ersonal
mana!ement is that part of the pro.ess of mana!ement hi.h is primaril&
.on.erned the human aspe.ts of an or!an' Its purpose is to establish and
maintain !ood personal relations at all le%els of an or!ani<ation' Eithout
effi.ient use of human resour.es3 mana!ement .an ne%er a..omplish
or!ani<ational obCe.ti%es' (ersonal mana!ement is also .alled personal
administration3 labour mana!ement3 and manpoer mana!ement' The
fun.tions of the department are*
(lannin!3 re.ruitment3 sele.tion3 indu.tion and pla.ement
(erforman.e mana!ement s&stem
(otential assessment s&stem
Trainin! and .areer de%elopment pro!rams
Implementation and follo up on %arious .ertifi.ations that deal
ith monitorin! statutor& .omplian.es
Responsible for the editorial of the in house ma!a<ine >D)( nes
In%ol%e in spe.ial proCe.ts and tas2s as and hen ad%ised b& the
top mana!ement
9-
EN#INEE&IN# DEPA&TMENT
The fun.tions of the department areL
"aintenan.e and repair or2s of all the %ehi.les belon!in! to the
.ompan& as ell as TG$
Distribution of %ehi.les stationed in the or2shop
#le.tri.al .urrent distribution and maintenan.e or2s for hole
"unnar ton
/and inspe.tion near and around "unnar ton area
"aintenan.e of buildin!s and other .i%il or2s in and around area
(reparin! estimates3 super%ision and %erifi.ation of an& .i%il or2s
for both >D)( and TG$
"atters re!ardin! statutor& requirements of fa.tories'
9,
MD6S SEC&ETA&IAT
The fun.tions of the department are*
All matters pertainin! to the fun.tionin! of the !uest houses in
"unnar
"aintenan.e of bun!alo in%entor& a..ount
All administrati%e matters relatin! to mana!ement staffBtransfer3
lea%e3 alloan.e3 %ehi.le loans3 lea%e pro.essin! and their follo up
All routine .orresponden.e from "D to %arious estates3 fa.tories3
department and eAternal sour.es
All arran!ements .on.ernin! .ompan& %isitors
Ad%i.e the finan.e department for .reditin! an& reimbursement to the
mana!ement staff a..ount
All matters of .orresponden.e .on.ernin! mana!ement staff



9+
P'&CHASE AND LO#ISTIC DEPA&TMENT
The pur.hase se.tion is responsible for dis.har!e of the pur.hase fun.tions'
The fun.tions of the department are*
4endor sele.tion and de%elopment
(reparation and dispat.h of pur.hase orders to %endors
(ro.essin! of pur.hase do.ument after re.eipt of materials
Intimation and follo up of reCe.tion and shorta!e to the %endors
Follo up of pendin! pur.hase orders
The fun.tions of the lo!isti. department are*
Tru.2 arran!ement for lo.al and au.tion teas ithout interruption
Tru.2 arran!ement for outstation loads
Issuan.e of sales taA forms to the fleetMfa.tories and maintenan.e of
re!isters and follo up
Arran!ement of tra%elMa..ommodationMtransportMbias for mana!ement
staff ith follo up and %erifi.ations
(reparation of tender on sale of s.rap
"aintains #"D statements
Notes and minutes of the transport .ommittee meetin!s
Tra%el bill3 %erifi.ation3 passin! and follo up
Sale of non performin! assets after adoptin! the statutor& formalities
"eetin! the requirements of NTO for their up.omin! proCe.ts


98

CHAPTE& .
CO&PO&ATE SOCIAL &ESPONSI1ILITY

99
CO&PO&ATE SOCIAL &ESPONSI1ILITY
>D)( 1ompan& has ala&s stri%ed throu!h its endea%ors to ma2e a
positi%e .ontribution b& en!a!in! and supportin! a ide ran!e of So.io
#.onomi.3 #du.ational3 Sports and )ealth initiati%es in the .ommunit& that
it operates' Responsibilit& toards the so.iet& is one of the 2e& obCe.ti%es of
the .ompan&3 a fa.t that is e%ident from its mission statement' Apart from
ensurin! that it stri.tl& abides ith all statutor& and elfare measures as per
pro%isions of the %arious ena.tments appli.able to the plantations3 the
.ompan& has pro%ided elfare s.hemes on its on li2e3 free ele.tri.it& for
.ertain .ate!or& of emplo&ees3 assistan.e for pro.urin! /(G .onne.tion3
Fuel Subsid&3 fa.ilities for .attle rearin!3 land for maintainin! >it.hen
!arden3 free issue of hot tea at the or2 spot3 sanitation or2ers for .leanin!
the surroundin!s of housin! pro%ided and a hole lot of other fa.ilities for
sports3 re.reation and .ultural a.ti%ities' Eelfare of the emplo&ees of the
.ompan& has been one of the .ore %alues that the .ompan& has ala&s
belie%ed in'
The (arti.ipator& "ana!ement Stru.ture has helped emplo&ees %oi.e their
.on.erns and requirements from the di%isional le%el' The .ompan& also
en!a!es an independent eApert to .ondu.t a so.ial audit e%er& &ear and
reards the $est #state and $est )ospital based on the s.ores re.ei%ed in
the audit' All aspe.ts of labour elfare are .o%ered in this audit' Ri.e bein!
a maCor requirement for the or2 for.e and the instabilit& in its pri.e at the
lo.al mar2et3 lead the .ompan& to inter%ene and pro.ure ri.e in bul2 dire.tl&
from the mill3 and distribute it to the emplo&ees at .ost pri.e ith .redit
fa.ilit&3 hi.h has helped in ma2in! .onsiderable monthl& sa%in!s for e%er&
famil&'
(ro!ress ithout .omplimentin! de%elopment of the so.iet& does not &ield a
sustainable de%elopment for an& or!ani<ationL a prin.iple the .ompan& bears
in mind in all the poli.ies that it adopts' One su.h initiati%e that the .ompan&
has !i%en thrust upon to uplift the .ondition of the omen and empoer
them is the aid !i%en in formation of Self )elp Groups a.ross its se%en
estates' The proCe.t as .arried out in su.h <eal that3 toda& there are nearl&
8-- S)GIs ith total membership .ountin! to 7,7-' These !roups .arr& out
a.ti%ities li2e mi.ro finan.e3 stit.hin! ba!s3 produ.in! phen&l3 soaps alon!
ith .arr&in! out elfare a.ti%ities' These !roups ha%e be.ome a blessin! to
the families ith lo in.ome le%el3 and ha%e shon our omen ho are the
ba.2bone of the industr&3 additional a&s of !eneratin! in.ome'

97
The .ompan& has ala&s pla&ed a supporti%e role toards their a.ti%ities b&
!i%in! them !uidan.e and pro%idin! trainin! fa.ilities' The .ompan&
pro%ides free s.hoolin! up to primar& le%el for the .hildren of the
emplo&ees' Apart from this3 it eAtends its appre.iation for meritorious
students throu!h reards and feli.itations e%er& &ear' As part of its
re.ruitment poli.&3 the .ompan& absorbs qualified .hildren of its emplo&ees'
The .ompan& has introdu.ed the >D)( S.holarship3 hi.h is !i%en to the
student a.hie%in! the hi!hest mar2s in telfth standard eAams from the
>D)( famil&' The dedi.ated elfare in! of the .ompan& helps emplo&ees
to a%ail s.holarships promoted b& %arious bodies li2e U(ASI3 Tea $oard et.
for their .hildren'
The .ompan&Is "edi.al Department is in%ol%ed in pro%idin! .omprehensi%e
health .are to the emplo&ees and their famil& members3 hi.h in.ludes
maternal H 1hild elfare3 immuni<ation3 famil& plannin!3 en%ironmental
sanitation3 potable ater suppl&3 health edu.ation3 o..upational health3
Tribal elfare et.' The .ommunit&H So.ial elfare de%elopment
department .ondu.ts health eAhibitions in ea.h of the estate e%er& &ear' The
.ompan& pro%ides fa.ilities li2e pla&!rounds for football3 .ri.2et3 %olle&ball3
badminton et.' Inter estate tournaments for Football3 athleti.s3 .aroms3
badminton et. are .ondu.ted' The emplo&ees a.ti%el& parti.ipate in these
annual tournaments ith Zest and Zeal ith the pride of representin! their
respe.ti%e estates'

95

CHAPTER 8
ENVI&ONMENT AND S'STAINA1LE
DEVELOPMENT
9D
ENVI&ONMENT AND S'STAINA1LE DEVELOPMENT
The .ompan& has put in man& efforts to preser%e the e.os&stem of the pla.e'
(eople are edu.ated on ener!& effi.ient pra.ti.es in fa.tories and in the
households of the emplo&ees' The .ompan& too2 o%er ele.tri.it& business
from TT/ ith effe.t from , 0ul& +--D and sin.e then has been distributin!
ele.tri.it&' The .ompan& too2 se%eral initiati%es to redu.e ele.tri.it&
distribution loss and impro%e qualit& of ele.tri.it& to distant fa.tories' The
.onsumption of poer and fuel per unit of produ.tion redu.ed from -'6
unitsM2! of tea in the earlier s&stem to -'D9 units ith the ne .ompan&'
There ere efforts to .on%ert all the in.andes.ent li!ht bulbs into .ompa.t
fluores.ent lamps F1F/sG hi.h .onsume D7J less ener!& than the ordinar&
bulbs' The .ompan& a.ti%el& supports the )i!h Ran!e Eildlife and
#n%ironment (reser%ation Asso.iation F)RE and #(AG hi.h pla&s an
a.ti%e role in preser%in! the natural herita!e of the >anan De%an )ills and in
prote.tin! the en%ironment and ildlife .onser%ation of the area' The fuel
plantations Feu.al&ptus !randisG ha%e been raised b& the .ompan& to meet its
thermal ener!& requirements in the hi!h ran!e fa.tories and fuel requirement
of the emplo&ee households'
The famous #ra%i2ulam National (ar2 spread o%er an area of :D square
2ilometers3 and lo.ated in the )i!h Ran!es3 is an inte!ral part of the %ast
stret.h of forests eAtendin! from Anamallais to the (alani )ills of Tamil
Nadu' The par2 is unique ith the shola !rassland e.os&stem at an a%era!e
ele%ation of +--- "eters' The .limate here is temperate' The rollin!
!rasslands hold the thin topsoil' And the area has remained undisturbed b&
human a!en.& from time immemorial' 1onsiderin! the e.olo!i.al3 floral3
faunal and !eoBmorpholo!i.al si!nifi.an.e of this area3 it is listed as one of
the en%ironmental =hotBspots? in Asia'
The #ra%i2ulam area as under the .ontrol of the ersthile >anan De%an
)ills (rodu.e 1ompan& /imited and maintained as a ildlife reser%e b&
the 1ompan& for the endan!ered Nil!iri Tahr3 ell before the .on.ept of
Eildlife san.tuaries and National (ar2s .ame into for.e' This area as
handed o%er to the Go%ernment of >erala in ,:D,' $efore the land use .ould
be .han!ed and su.h a ri.h biolo!i.al hotspot misused3 the timel&
inter%ention of the )REH#(A3 enabled the area to be de.lared as a ildlife
san.tuar& in ,:D7'

96


CHAPTER 9
SWOT ANALYZIS


9:
SWOT ANALYZIS
ST&EN#TH
,trong demand for tea in the domestic mar#et
-ell maintained tea gardens
.mployee ownership in e%uity capital
,alubrious climatic conditions for tea culti$ation
,trong production base
&oti$ated manpower with e/perience and e/pertise in
tea production
,trong research and de$elopment department
.ffecti$e participati$e management structure
&unnar gaining popularity in world tourism map
,uccessful non-tea operations
0argest tea corporate in south "ndia
1ood e/port performance
"EAKNESS
)ifficulty in mechani2ation due to geographical
structure of land
Bul# of 'ea sales happens through auctions where the
price is highly unstable
'he company is not ha$ing an established brand in
mar#et
)iminishing a$ailability of labour
3ld age of the tea bushes
7-
OPPO&T'NITIES
4ew international operations
1rowing demand for tea as a health attribute
)e$elop branded tea by promoting R"PP0. which is
presently in its initial stage
'he plan of company in di$ersification of crops
5uge scope a$ailable for tourism and related areas
.stablish itself as a premier agri-corporate
TH&EATS
"ncreasing labour costs and cost of production
!hanging climatic conditions can affect the yield of tea
production
!ompetitions faced in the domestic as well as
international mar#ets
'he need to support the huge man power
0ac# of manpower a$ailability to meet labour intensi$e
plantation operations

7,

CHAPTER 10
CONCLUSION AND RECOMMENDATIONS
7+
CONCLUSION AND RECOMMENDATIONS
The #$O and the resultant parti.ipator& mana!ement s&stem at Tata Tea?s
southern operation in "unnar emer!ed as a solution to the lon!Bstandin!
.risis in the tea industr&' Tata?s li2e the )U/ anted to al2 out of the
plantations operations and fo.us on the branded tea business' (arti.ipator&
mana!ement throu!h the bu&Bout of the .ompan& shares and formin! a ne
.ompan& b& the emplo&ees as seen as an ami.able solution' The transition
as hoe%er not ithout efforts of the mana!ement staff of TT/'

The fa.t that su.h a hu!e number of emplo&ees .ould be .on%in.ed3 thou!h
ith initial apprehension3 to be.ome the shareholders of the .ompan&
demonstrates the effe.ti%eness of the .ommuni.ation .as.ade underta2en b&
the .ompan& staff' $& fa.ilitatin! the formation of >D)(1(/3 the .ompan&
.laims to ha%e ensured the lon!Bterm e.onomi. sustainabilit& and better
li%in! .onditions for its or2ers' This as also a radi.al shift from the past
here the mana!ement of Tata Tea itnessed a hierar.hi.al topBdon
approa.h' )oe%er3 hile spea2in! of the su..essful &ears of the .ompan&
and the fa.tors behind them3 it is also essential to eAamine the sustainabilit&
of su.h models in plantation a!ri.ulture' It is essential to note that the timin!
of formation of >D)(1(/ itself as quite fa%orable' That as the time
hen !lobal mar2ets for tea also itnessed a re.o%er&'
$etter pri.e of tea in the au.tion mar2et benefited >D)(1(/ in earnin!
profits in the first &ear of operation hi.h as a .ru.ial &ear to form
eApe.tations for the emplo&ees and boost their .onfiden.e in the s&stem'
This as an important a.hie%ement to ta2e nel& formed .ompan& to mo%e
to the neAt le%el of traCe.tor&' Thou!h >D)(1(/ to a lar!e eAtent has
stabili<ed in terms of or!ani<ational stru.ture3 there are internal and eAternal
fa.tors hi.h .an be a threat to sustainabilit& of the model' Another round of
lon! depression in the !lobal tea mar2et ma& threaten the finan.ial stabilit&
of >D)(1/'
For this di%ersifi.ation of .rop .ould be a prudent measure hi.h the
.ompan& is no %enturin! into' $ut at this point the di%ersifi.ation of .rops
is hi!hl& limited' Se.ond3 the a%era!e a!e of tea plantations is around 6-
&ears hi.h does not !i%e rise to !ood qualit& of tea' The best of the tea is
eAtra.ted hen the bushes are 8-B9- &ears old' )oe%er3 the .ompan& is
puttin! in efforts to replant the bushes in a phased manner'
78
Third3 the .ompan& so far has eAperien.ed a !ood eAport performan.e as
.ompared to the earlier re!ime' )oe%er3 there is mu.h to do in this sphere
of a.ti%it&' It ould be orthhile to eAplore the maCor mar2ets here the
eAport share of India in those mar2ets is quite minimal' Sin.e the domesti.
.onsumption of tea is also %er& hi!h and there is a %ast potential in the rural
mar2ets3 it ould be ise to promote mar2etin! and distribution strate!ies in
rural India' )oe%er3 the brandin! efforts of the .ompan& throu!h tie ups
ith Gujarat Samachar and Elite Breads has not pro%ed too su..essful' This
.alls for in.reased attention toards buildin! up on brands' )en.e the
.ompan& has laun.hed its on brand ORI((/#P hi.h is in its initial sta!e
of mar2et de%elopment' 1on.entrated efforts are on to meet the .ompetition
in the retail FbrandedG tea business'
79