A Report on the

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Table of Contents

Sl. No. Chapter Title Page No.

1 1 Chapter 1 4

2 1.1 Introduction 5

3 1.2 Organization Profile 5

4 1.2.1 Name and address of the company 6

5 1.2.2 Market status 6

6 1.2.3 Awards and Recognitions 6

7 1.3 History 7

8 1.3.1 Milestones of the Co. 7

9 1.4 Form of Ownership 8

10 1.5 Corporate Structure 8

11 1.6 Planning and associated functions 9

12 1.6.1 Mission 9

13 1.6.2 Vision 914 1.6.3 Objectives 10

15 1.6.4 Quality Policy 10

16 1.7 Organization structure 10

17 1.8 Technology 13

18 2 Chapter 2 14

19 2.1 Production 15

20 2.1.1 Sub departments 15

21 2.1.2 Product range 16

22 2.1.3 Raw materials and its sources 17

23 2.1.4 Quality control 1724 2.1.5 Pollution control systems 18

25 2.1.6 Safety measures 18

26 2.2 Sales and distribution 18

27 2.2.1 Market details 18

28 2.2.2 Major competitors 19

29 2.2.3 Advertisements and sales promotion activities 19

30 2.2.4 Distribution channels 19

31 2.3 Human resource management 20

32 2.3.1 Number of employees 20

33 2.3.2 Workman classification 20

34 2.3.3 Qualification required 2135 2.3.4 Selection and recruitment 21

36 2.3.5 Welfare activities and facilities 21

37 2.3.6 Wages for workmen 22

38 2.3.7 Attendance 23

39 2.3.8 Performance appraisal and promotion policy 23

40 2.3.9 Employee grievances management 23

41 2.4 Finance 24

42 2.4.1 Functions of finance department 24

43 2.5 Social obligations and ethics 25

44 3 Knowing a manager 2645 3.1 Span of control 27


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46 3.2 Authority 27

47 3.3 Instances of delegation of authority 27

48 4 Teams and leadership 28

49 4.1 Teams 29

50 4.2 Norms 29

51 4.2.1 Appearance norms 2952 4.2.2 Performance norms 29

53 4.3 Leadership 29

54 - Conclusion 30

55 - Photos 32


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List of Tables

Sl. No. Title Page No.

1.1 Address of the Co. and its branches 8

List of Charts

Sl. No. Title Page No.

1.1 Organization Structure 12


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CHAPTER1

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


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1.1 INTRODUCTIONAgriculture 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

t ime consuming process which required a lo t o f labour work . The cos t o f

p r od uct i on wa s hi gh an d th 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, KAMCO was born in the year 1973, as a fully owned

und ert aki ng of Gove rnm ent of Kerala.

1.2 ORGANIZATION PROFILE

Sta te o f Ke ra la ha s a pecu l ia r s t a te o f a f fa i r s in i t s

agricultural economy. Being 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

s cena r io , mechan iza t ion o f the fa rming i s a nons ta r t e r p ropos i t i on in


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the s t a te . Ba r r ing t rad i t iona l t oo l s and t a ck le s emp loyed by the fa rmers

in the cultivation, there were no 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: Athani683585, 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 mp an y wit h i ts fo ur pl an ts

at At ha ni , Kal am as se ry, Kan ji kod e and Ma la un it is 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 & RecognitionsKAMCO received outstanding safety award for 4 times.


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1.3 HISTORY

The Ke ra la Agro Mach ine ry Corpo ra t ion L td popu la r ly known a s

KAMCO was 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

ag reemen t wi th M/S .Kubo ta L imi ted , J apan in Feb rua ry 1972 .On 15 .11 .

1972, the KeralaIndustrial 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 shares in KAMCO. Even though the company

was formed as a subsidiary of KAIC Ltd, subsequently the company becamea fully owned government company b y t ransferring the shares held by KAIC Ltd.

KAMCO has comple ted i t s 33 yea rs and i s runn ing on p ro f i t fo r

t h e l as t 22 yea 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 u 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

Kalamassery unit 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

cert if icate and the only public sector undertaking who has got ISO


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9002certification justify in the high standards of the products for their three units. From

15-03-2002 onwards KAMCO became an ISO 9001- 2000 registered company by

KPMG quality registration.

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

a l s o h e l p t o b o o s t t h e b u s i n e s s . T h e c o m p a n y i s r u n n i n g a s t a b i l i s e d

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

Kalamassery unit manufactures diesel engines, Kanjikode unit produce powertiller and the Mala unit manufactures power reaper.

The address of the Head Office and other three units are :

Table 1.1

Unit Address

Athani Reg. office:

Athani683585,Ernakulam Dist, Kerala State


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Tele: 91484- 2474301 to 2474305

Fax: 91- 484- 474589

E-mail: kamco@ satyam.net.in

Palakkad KAMCO Palakkad Unit

New Industrial Development Area,

Menonpara Road, Kanjikode P.O.,Palakkad678 621, Kerala State.

Tele: 91 491- 2567253, 2567258

Fax: 91 491- 2567242

Kalamassery KAMCO Kalamassery Unit

Industrial Development Plot,

South Kalamassery683109,

Ernakulam Dist, Kerala State.

Tele: 91484- 2555001, 2543328

Fax: 91- 484- 2558633

Mala KAMCO Mala Unit

Naithukudy , Mala680 732.

Trissur Dist, Kerala State.

Tele: 91 480- 2892506, 2892507

Fax: 91 480- 2892213

1.6 PLANNING AND ASSOCIATED FUNCTIONS

1.6.1 Mission

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.


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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 quali ty 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

delegation of authority to the 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 dif ferent

sections. Managers and Deputy Managers will assist the General Manager and Deputy

General Manager.

Board of directors :1. V.Chamunni Director & Chairman


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2. S.M.Reghunathan Managing Director

3.C.P.Murali Director

4.M.Aboobakar Director

5.K.Ramdas Director

6.Edakulam Hameed Director

7.Sulaiman Khalid Director8.K.K.Gangadharan Director (Director of Agricult-

ure, Govt. of Kerala)

9.M.Albertian Director (Dy Secretary, Agric-

ulture, Govt. of Kerala)


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ORGANISATION STRUCTURE

Chart 1.1

*SM - Senior Manager

*DM - Deputy Manager

*DGM - Deputy General Manager

*AM - Assistant Manager

Board of Directors

Managing Directors

Manager(Pdn.) DGM(R&D)

SM(HR)

MANAGER(HR)

DM(Pdn.) AM(MTNCE)

SM(MTLS) SM

MKTING

DGM(F & Cs)

DM(purchase) DM(stores) DM(mkting) Manager

System

Manager

Security

Network

SM(finance)


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1.8 TECHNOLOGY

KAMCO is still in the process 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. Th e mo du le in co rp or at ed in ER P pa ckag e us ed

are the Finance Module, Marketing 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 & Painting2.1.1 Sub Departments

Machine Shop :

Machine Shop is responsible for ensuring the conformity with

prescribed standards, the 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

T o d a y K A M C O s w e l l k n o w n p r o d u c t r a n g e i n c l u d e s t h e K A M

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 farmi ng operation s with suitabl y des igned accessories the

machine can be used for alargenumber of specific operations l ike t i l l ing, ploughing, pumping, puddi

ng, le ach in g, hul li 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 athor ti cu lt ur al fa rm s. A hi gh ly fu el -

eff ic ien t and pow er fu l equ ip men t wi th eas y-t o- con tr ol operations. Ideal for

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, potato harvester. Individual inspection for conformity

with specification. Every machineundergoes running test for several hours before

sentencing as passed for delivery. A reaper costs between Rs.68,000Rs.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 system s d esign ed b y t he LBS cent re for scie nce and

Technology and approved by State 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 ofthem is Yoursafe 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 DISTRIBUTION2.2.1 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 the market

share is in the hands of KAMCO. KAMCO could achieve this by due to

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 :

TillersKerala, West Bengal, Tamil Nadu and North Eastern states.ReapersChhattisgarh, 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 invented a new engine, which is a

dies el en gine wit h di rect inj ecti on. For the sale s 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. instit ution and oth er is a Pvt. firm. The comp any has a

network of 70 dealers. 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 the excess quan tity sol d through t hem. The tr ansport ing

facil i t ies are provided by KAMCO itse lf . The sales are made agains t cash

ad va nc es ex ce pt in fe w ca se s; it is ma de 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 a tmosphere , interpersonal re la t ionships e tc . HR Department helps in

moulding theindividuals to attain maximum development. Mr. Vimal Kumar is the HR

Manager.

2.3.1 Number of Employees

Without the 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 temporaryemployees. 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.m7 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,

Er nak ula m. Vac anc ie s are advertised in major news papers or notified to the

Employment Exchange in accordance with the Govt. rules. There is nodiscrimination based on colour, religion, race etc. Appointments ar e pu re l y b as ed

on merit . The Dy. Manager is in charge of Recruitment and Selection,

Promotion, Performance Appraisal, PF etc.

After obtaining applications, initial screening is done on the basis of the specifications

given for the job. Short l is ted candidates considered matching the profi le ,

go through the se lection process . The selection process consis ts

of wri tten test , gr oup disc ussi 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. Salary settlement is based on the Kerala Government

Employee Salary of Pay.

A production incentive scheme is fol lowed in KAMCO for the

be ne fi t of employees, which constitute quarter of the pay packet. It aims at

increased output, productivity and utilisation of

resources. This scheme covers all the permanent employees.

In KAMCO, incentives are mainly of 3 types:

1 ) D i r e c t i n c e n t i v e s

2 ) S e m i d i r e c t i n c e n t i v e s

3 ) I n d i r e c t i n c e n t i v e s

Employees are given fes t ival a l lowances of Rs 5000/- ever year in

connection with 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. AssistantManager 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 promot ion, 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:-

G8Asst. Engineer, Superintendent

G9Asst. Manager

G10Deputy Manager

G11Manager

G12Senior Manager

G13Deputy General Manager

G14General 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 havemorethan one unit or their own fund without any external funds . KAMCO has

no 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.,in flow and

outflow of funds and i t a lso ensures that whether there is appropria te

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 . B u d g e t & B u d g e t a r y c o n t r o l

2 . M a n a g e m e n t o f r e c e i p t s

3 . M a n a g e m e n t o f p a y m e n t s

4 . A u d i t i n g

5 . C o s t i n g


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6 . S t a t u t o r y t r a n s a c t i o n

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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CHAPTER3

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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CHAPTER4

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 comp any KAM CO Power til ler s

, Powe r reap ers and Dies el engi ne. In spit e of thr eat fro m imported and

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

OrganisationStructur e, vari ous depar tments and thei r functi ons in a factor y

and ove ral l ope rat io ns of Organisation. The study enabled to collect muchmore information about the Organisation and have helped in knowing the practical

situation prevailing in the company.


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PHOTOS

A Report on the

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