A STUDY ON HUMAN

RESOURCE DEVELOPMENT IN AN

ORGANIZATION (WITH SPECIAL REFERENCE TO “KERA FED” TRIVANDRUM, KERALA)

Submitted by

VARADARAJA.S

(REG NO-92710631057)

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements

For the award of the degree

OF

MASTER OF BUSINEES ADMINISTRATION

1

IN

“HUMAN RESOURCE MANAGEMENT & FINANCE”

ANNA UNIVERSTY

Tirunelveli-627007

July

CERTIFICATE

2

BONAFIDE CERTIFICATE

This is to certify that this project report entitled “A STUDY ON

HUMAN RESOURCE DEVELOPMENT OF ORGANISATION” with

special reference to “KERAFED”, Trivandrun, Kerala. Submitted in

partial fulfillment of the requirement of the degree of Masters Of

Business Administration to Anna University, is a bonafide record

carried out by VARADARAJA S ( Reg No:92710631057 ) Under my

supervision and guidance and I certify that the work done is original.

Place: Signature of guide

Date:

3

Forwarded by HOD

Internal Examiner External Examiner

Declaration

4

DEClARATION

I , V A R A D A R A J A S “ A N A N A L Y T I C A L S T U D Y O N T H E

H U M A N R E S O U R C E D E V E L O P M E N T O F A N

O R G A N I S A T I O N ’ ( W I T H T H E S P E C I A L R E F E R E N C E T O

K E R A F E D , T R I V A N D R U M , K E R A L A , s u b m i t t e d t o A N N A

U N I V E R S I T Y i n p a r t i a l f u l f i l l m e n t o f t h e r e q u i r e m e n t s f o r

t h e a w a r d o f t h e d e g r e e o f M a s t e r o f B u s i n e s s A d m i n i s t r a t i o n

i s a r e c o r d o f o r i g i n a l r e s e a r c h w o r k d o n e b y m e u n d e r t h e

s u p e r v i s i o n a n d g u i d a n c e o f M r . S . G . S t a r l i n M a n o , H e a d o f

t h e d e p a r t m e n t , D e p a r t m e n t o f M a n a g e m e n t S t u d i e s , M a r i a

C o l l e g e o f E n g i n e e r i n g a n d T e c h n o l o g i e s ,

A t t o o r , M a r t h a n d o m , T a m i l N a d u .

5

S i g n a t u r e o f t h e G u i d e S i g n a t u r e o f t h e C a n d i d a t e

Acknowledgement

ACKNOWLEDGEMENT

First of all, I thank Lord Almighty for his abundant blessingsBestowed upon me for the successful completion of my projectreport.

I would like to express my deep gratitude to our Principal `Dr. Y.SUJAR for permitting me to undertake this project work.

I take this opportunity to express my sincere gratitude to the Head of our Department Mr. S.G Starlin Mano , MBA for his guidance for his valuable advice and timely Co- operation towards the accomplishment of the study.

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I extend my sincere thanks to Mr. Prathaban and the administration officer of kerafed for their moral support.

I am thankful to all the faculty members of HLL for allowing me to do this project in their reputed concern; I thank everyone for their constant guidance in every aspect of this project.

I express my sincere gratitude to my project guide, Mr.S.G.Starlin Mano for his kind co-operation and guidance for preparing this project.

I also extend my sincere thanks to all other faculty members of department of management studies and my friends for their support and encouragement.

7

ORGANISATION NAME

ORGANISATION NAME

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KERALA KERAKARSHAKA SAHAKARNA FEDERATION LTD.

“KERA TOWER”, Water Works Compound, Vellayambalam,Vikas Bhavan (P.O), Thiruvananthapuram (Dist),

Kerala State, India. Pin Code- 695 033.Tel:00- 91- (0)471- 2321660, 2326153, 2326209, 2326736

Fax:00-91-(0)471- 2326298

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ABSTRACT

ABSTRACT

KERAFED is one of the largest coconut oil producers in India.

10

Its coconut oil complex at Karunagapally in Kollam district houses state-of the

art facilities for extraction is one of the largest coconut oil mill in the sub-

continent with an installed capacity of 200 TPD.

KERAFED is the Apex Co-operative Federation of coconut farmers in Kerala.

It is the single largest procurer of coconut/copra, produced in Kerala.

It increases the income of 29 lakh farmers' families and creates employment

opportunities is the industrial sector. 

The “Human Resource Development” (HRD) undertaken as a part of the

curriculum was done at “The Kerala Kerakarshaka Sahakarna Federation Ltd”,

(KERAFED) Thiruvananthapuram. This study provides an opportunity to

expose the students to an industry / organization and its operational

conditions. This study also aims at having a better understanding of

Human Resource Development and its Functioning.This report consists of

a detailed study of the Employees of the company, product profile,

organizational hierarchy, various departments and their functioning etc.

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Contents

12

13

List of tables

14

List of Exhibits

15

16

Chapter 1

17

CHAPTER-1

1.1 INTRODUCTION

The organization study undertaken as a part of the curriculum was done at

“The Kerala Kerakarshaka Sahakarna Federation Ltd”, (KERAFED)

Thiruvananthapuram. This study provides an opportunity to expose the

students to an industry / organization and its operational conditions.

This study also aims at having a better understanding of various

departments and its functioning. This report consists of a detailed study of

the history of the company, product profile, organizational hierarchy, various

departments and their functioning etc.

This study proved to be fruitful by familiarizing us to the organization and at the

same time it also helped us to create practical awareness.

KERAFED is one of the largest coconut oil producers in India.

Its coconut oil complex at Karunagapally in Kollam district houses state-of the

art facilities for extraction is one of the largest coconut oil mill in the sub-

continent with an installed capacity of 200 TPD.

KERAFED is the Apex Co-operative Federation of coconut farmers in Kerala.

It is the single largest procurer of coconut/copra, produced in Kerala.

It increases the income of 29 lakh farmers' families and creates employment

opportunities is the industrial sector. 

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1.2 Scope of the study

The study is intended to attain a first hand experience of the overall running of an

organization. A detailed analysis of each of the activities performed by the

departments is included in the study. It also provides a chance to see the practical

constraints faced by the managers while putting theory into practice.

Limitation of the study

1. The company records which are of confidential nature were not provided.

2. Many of their financial audits are yet to be published and this limited the

collection of data.

3. Since a face to face interview was conducted, there is a chance of biasing.

4. The busy schedule of the departmental heads restricted collection of

detailed information

Period of study

The study was conducted fro29 June 2011 to 29 July 2011

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1.3 OBJECTIVES OF THE STUDY

1. To study about the activities of employees in the organization.

2. To get an overall view of the company performens by the employees

3. To know about the product range of the company and requirement of manpower.

4. To develop an understanding of the management practices followed in various functional areas to develop HR .

5. To understand how the theoretical aspects are put to practice in the organization to get improvements in efficiency of employees.

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1.4 Methodology

HYPOTHESIS

The study should be successful through the collection of primary and secondary data in three phases

1. Collecting information from various manuals, reports, articles etc.

2. Interviewing departmental heads and other staffs for understanding the activities of each department, its structure and the roles played by each of them.

3. The third phase involved visiting operational sites of various departments to get the feel of the departments and the working environments.

PRIMARY DATA

Primary data is obtained through observation or through direct communication with respondents in one form or another or through personal interviews.

The primary data for this study was obtained from:

Formal and informal interviews with managers, departmental heads and employees.

Direct observation

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SICONDARY DATA

Secondary data are those which have already been collected by someone else and which have already been passed through statistical process.

The secondary data for this study was collected from :

Company records

Journals

Annual reports

Internet

Statistical or Hypothesis is necessary for the “HRD”

A hypothesis is an explanation for a phenomenon which can be tested in some way which ideally either proves or disproves the hypothesis. For the duration of testing, the hypothesis is taken to be true, and the goal of the researcher is to rigorously test the terms of the hypothesis. The concept of the hypothesis is a very important part of the scientific method, and it also holds true in other disciplines as well.

22

Parametric Hypothesis Tests

ANOVA

Power and Sample size

Parametric Hypothesis Tests

ROC Curves

Nonparameteric Tests

Survival Analysis

Correlation

The important Hypothesis test’s are:-

23

1.5 Limitation of the study

1. The company records which are of confidential nature were not provided.

2. Many of their financial audits are yet to be published and this limited the

collection of data.

3. Since a face to face interview was conducted, there is a chance of biasing.

4. The busy schedule of the departmental heads restricted collection of

detailed information

Period of study

The study was conducted fro29 June 2011 to 29 July 2011

24

Chapter 2

25

CHAPTER-2

2.1 Review of Literature

The coconut palm is one of the most valuable plants to man. In Sanskrit the

coconut palm is called “kalpa vriksha”, which roughly translated means “Tree

of Life”. In India, it provides livelihood to about 10 million people through

various activities from its cultivation to processing of its products. All the

parts of the coconut tree can be put to useful purposes- the roots, the trunk,

the wood, leaves, the blossom and all the parts of the nut.

Two major classes of coconut palm are typically recognized on the basis of

stature: tall and dwarf. The ones most commonly planted for commercial

purposes are the tall varieties, which are slow to mature and first flower six to

ten years after planting. They produce medium-to-large size nuts and have a

life span of sixty to seventy years. The dwarf varieties may have originated as

a mutation of tall types. The dwarf variety may grow to a height of twenty-

five to thirty feet and begin flower after three years, when they are only about

three feet tall. Their life span is only about thirty years.

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Chapter 3

27

CHAPTER-3

3.1 INDUSTRY PROFILE

The coconut economy of India is in a convenient status. India accounts for

22.34 per cent of the world’s coconut production and is one of the major

players in the world’s coconut trade. Currently the crop is grown in 1.91

million hectares with an annual production of nearly 13000 million nuts.

The price of the coconut in the country is dependent on the prevailing

price of coconut oil which is characterized by recurring violent

fluctuations. The fluctuation in the price of the coconut oil simultaneously

reflects on the price of coconut. The volatile price situation often ends in

the negligence of the coconut gardens, leading to attack of pests and

diseases and low productivity.

The Coconut Development Board has been playing pivotal role in promoting

viable coconut based farming system, on-farm processing and products

development. The production and marketing of value added products have

28

started attracting commercial interest and the situation brought rejuvenation in

the sector. The market promotional measures undertaken in pursuit of the

popularization of health benefits of coconut oil and tender coconut water have

attributed a stimulating effect on the less dependency of coconut oil driven

coconut economy. There has been a well defined network in the country to

undertake the R&D of coconut. The State Agricultural Universities, ICAR

Institutes, Agriculture/ Horticulture Departments of States/ UTs, organizations

like, NAFED, KERAFED etc. and private institutions contribute to the pursuit

of the research and development process of coconut in the country.

The Coconut Development Board has been playing pivotal role in promoting

viable coconut based farming system, on-farm processing and products

development. The production and marketing of value added products have

started attracting commercial interest and the situation brought rejuvenation in

the sector. The market promotional measures undertaken in pursuit of the

popularization of health benefits of coconut oil and tender coconut water have

attributed a stimulating effect on the less dependency of coconut oil driven

coconut economy. There has been a well defined network in the country to

undertake the R&D of coconut. The State Agricultural Universities, ICAR

Institutes, Agriculture/ Horticulture Departments of States/ UTs, organizations

like, NAFED, KERAFED etc. and private institutions contribute to the pursuit

of the research and development process of coconut in the country.

India is the third largest coconut producing country in the world.

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Country Production (MT)

Indonesia 16,300,000

 Philippines 14,500,000

 India 9,500,000

 Brazil 3,033,830

 Sri Lanka 1,950,000

 Thailand 1,500,000

 Mexico 959,000

 Vietnam 940,000

 Malaysia 710,000

 Papua New Guinea 650,000

STATISTICAL DATA OF COCONUT

All India State-wise Final Estimates of area and production of Coconut

2010-2011

States /Union

Territories

AREA ('000

Hectares)

Production (Million

nuts)

Productivity

(Nuts/ha)

Andhra Pradesh 104.0 892.0 8577

Assam 19.1 204.9 10728

Goa 25.3 125.3 4953

Gujarat 16.4 138.3 8433

Karnataka 385.4 1209.8 3139

Kerala 897.8 6326.0 7046

Maharashtra 18.0 273.4 15189

Nagaland 0.9 1.2 1333

Orissa 50.8 274.6 5406

Tamil Nadu 370.6 4867.1 13133

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Tripura 3.3 7.0 2121

West Bengal 24.9 323.5 12992

A & N Islands 25.5 87.1 3416

Lakshadweep 2.7 53.0 19630

Pondicherry 2.1 27.9 13286

All India 1946.8 14811.1 7608

Strength of Indian Coconut Industry

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One of the leading producers of coconuts in the world producing 13 billion nuts per

annum.

Coconut area distributed in 18 states and three Union Territories under different

agro-climatic conditions.

3000 years' tradition in coconut cultivation.

Premier coir manufacturing country in the world.

Producer of best grade milling copra in the world yielding high grade coconut oil

known for its aroma and flavor.

Large number of farmer's co-operative societies in primary processing and

marketing.

Government agencies such as KERAFED, State Trading Corporation, Kerala State

Marketing Federation and Karnataka State Marketing Federation in manufacturing

and marketing of branded coconut oil in small packs.

Hundreds of reputed and established private firms in manufacturing and marketing

of various coconut products including branded coconut oil in small packs.

Wide range of coconut products both edible and non-edible available for export.

Technical know-how and trained manpower for the manufacture of various coconut

based products.

Good number of cultivars / varieties having specific nut characteristics.

Coconut Products of India

A large number of coconut products are manufactured in the country which have

both domestic and export market.

32

Vinegar and soft drink are manufactured in the country from coconut water.

Tender coconut water is another product which is manufactured and marketed

successfully.

Coconut Products:

1. Tender Coconut Water

2. Copra

3. Coconut Oil

4. Raw Kernel

5. Coconut Cake

6. Coconut Toddy

7. Coconut Shell based Products

8. Coconut Wood based Products

9. Coconut Leaves

10. Coir Pith

Coconut Oil

Coconut oil makes up about 20 percent of all vegetable oils used in the world.

Copra, the dried kernel is the chief commercial product from coconut, which is

mainly used for oil extraction. Coconut oil is made from fully dried copra having

maximum moisture content of six per cent. For the extraction of oil from copra the

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common method still prevailing in our country is by using rotary chucks. But the

efficient system of extraction of oil is by the use of expellers.

Coconut oil is an important cooking medium in Southern parts of the country

especially in Kerala State. Besides, the oil has varied industrial applications. It is

used in the manufacture of toilet soaps, laundry soaps, surface active agents and

detergents, hair tonics, cosmetics, etc. It is used throughout the country as a hair oil

as it helps growth of the hair. As a massage oil it has a cooling effect on the body.

Owing to these qualities coconut oil has a potential market in the country. Since

the price of coconut oil in the international market is very much lower than the

domestic price, the quality and attractiveness of consumer packs are important

factors to compete in the world market. While the demand for coconut oil for

cooking purpose is elastic, its demand as hair oil is inelastic.

Coconut oil is marketed in bulk as well as in packs ranging from sachets

containing 5 ml. to 15kg tins. The branded coconut oil in small packs is mainly

marketed as hair oil and body oil. There are several brands known for their

superior grade oil which have export market throughout the world. India has

unbeatable quality advantage in this sector. Refined coconut oil is also

manufactured in the country for industrial uses. Refined coconut oil is mainly used

in the manufacture of biscuits, chocolates and other confectionery items, ice

cream, pharmaceutical products and costly paints. Generally, filtered coconut oil is

used for cooking and toiletry purposes. 

Virgin Coconut Oil

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Virgin Coconut Oil is also made in the country from the milk extracted from

raw kernel.  This is done on a small scale by the traditional method which is

now partially mechanised or on a large scale by adopting wet processing

technology. Coconut milk is fermented and then by mechanical process, water

is separated from oil. No heating or application of sunlight or dryer is done

for the process. The virgin coconut oil is free from trans fatty acid, high in

medium chain fats (MCFA) known as lauric acid, which is identical to special

group of fats found human breast milk and also rich in vitamin-E. High

quality of this oil makes it an ideal massage oil for babies and also for skin

and hair applications.

Applications

Cooking

Coconut oil is widely used in cooking, the refined oil is the one most commonly used.

Manufacturing

Coconut oil is used in volume quantities for making soap and cosmetics.

Hydrogenated coconut oil is often used in non-dairy creamers, and snack foods.

Fractionated coconut oil is used in the manufacture of essences, massage oils and cosmetics

Coconut oil is an important component of many industrial lubricants, for example in the cold rolling of steel strip.

Cosmetics and skin treatments

Coconut oil is excellent as a skin moisturizer and softener. Coconut oil is used for styling hair, and cooling or soothing the head.

AS A FUEL

Traditional use :

35

Coconut oil is used in oil lamps.

In diesel engines

Coconut oil has been tested for use as a feedstock for biodiesel to be used as a diesel engine fuel. In this manner it can be applied to power generators and transport using diesel engines.

Raw coconut oil can be used as a fuel for generating electricity by remote communities that have an abundant supply of coconuts and milling capacity, provided diesel engines are adapted.

Coconut oil is currently used as a fuel for transport in the Philippines

Health effects

Studies have found that coconut oil can help in weight loss and poison recovery.

Antimicrobial effects

Coconut oil be used in the treatment of fungal infections.

Coconut Oil - Unique & Healthy

Coconut oil finds extensive use in food, toiletry and industrial sectors because of its

unique characteristics. The numerous qualities of coconut oil reported are:

Oil of natural origin

Edible in raw form

Saturated and stable

Pleasing flavour

Light colour

Pleasant aroma

Biodegradable

High resistance to oxidative rancidity

Sharp melting behaviour

Narrow temperature range of melting

Skin friendly oil

Effective heat transfer agent in frying

Better shelf life for fried product

Ideal for deep frying

Ideal confectionery fat

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Provides moisture barrier and imparts high gloss for bakery items in spray oil use

Carrier and protective agent for fat soluble vitamins

Low viscosity

Superior baby oil

Oldest and most widely used cosmetic raw material

Maximum glycerin content

Easily saponifiable even in cold

Good emollient on skin, skull and hair

Gives softness and suppleness to skin on regular massaging

Spreads easily on the skin when used as massage oil

Excellent base for hair oil

Provides gloss to hair

Germicidal and antimicrobial property

Lowers evaporative loss of water from skin

Protects skin from heat

Ready penetration into the skin and appreciable water absorbing property

Nourishes the hair roots and provides coolness to the body

Imparts hardness and lathering property to soaps

Illuminant and lubricant

Does not leave a smoky flame if used in open lamps

Blends well with other oils

Potential fatty raw material in chemical industry due to its biodegradable nature

Excellent fat source in the preparation of filled milk and infant food formulae

Essential for the manufacture of toilet soaps, shaving cream, liquid soaps, 

natural shampoo and other cosmetics

No harmful effects due to reheating

Can be converted into diesel fuel

Essential ingredient in ghee substitutes

Nutritional / Medicinal

Easy digestibility and absorbability

Ideal energy source in baby foods

37

Contains Vitamin E

Composed mainly of short and medium chain fatty acids which have 

desirable qualities and functions

Does not contain cholesterol

Reduced fat accumulation in body

Easily oxidized and therefore a preferred energy source

Requires no transport system to absorb, digest and metabolize

Very low content of Omega 6 fatty acid

Studies undertaken by the Biochemistry Department, University of Kerala

showed that coconut oil:

Does not elevate blood total cholesterol 

Increases blood HDL cholesterol

Consumed along with coconut kernel lowers blood cholesterol

Copra  

Copra is the dried meat, or kernel, of the coconut. Copra making can be defined as the

systematic process through which the fresh meat coconut containing 50 to 55%

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moisture is dried in sun or other sources of to bring down the moisture content to 5% to

6% only.

Eleven to twelve month old nuts are utilized for copra making to

obtain the optimum output of better quality copra. The nuts are first husked to

remove the fibrous outer layer of the husk. The husked nuts are then split into

halves and the water is drained off. These halves are then kept for half an hour

with the open side turned down to ensure that entire water is drained off, if this is

not done , some moisture will be retained which will in turn lead to deterioration

of copra. The halves or cups are now ready for drying, which should invariably

start with in 4 hours after breaking.

Two types of copra namely milling and edible are made in India. Milling copra is

used to extract oil while edible grade of copra is consumed as a dry fruit and used

for religious purposes. Milling copra is generally manufactured by adopting sun

drying and artificial means. Substantial quantity of milling copra is manufactured

using modern hot air driers

resulting in the availability of superior quality copra which is required for the

manufacture of best grade coconut oil. A good number of farmers' co-operative

societies are also involved in the manufacture and marketing of milling copra.

Milling copra is available in different grades. Edible copra is made in the form of

balls and cups. Different grades of edible copra are available in the market

according to the size, colour etc.

Quality of copra is determined based on moisture content and extend of inferior

type of copra.

Inferior types of copra are generally:

1. Mould effect

2. Immature or rubbery copra made from immature nuts.

3. Insect attacked copra.

39

4. Discoloured copra.

Good quality copra is one which contains not more than 6% moisture.

Coconut oil is obtained by crushing copra most efficient method of extraction is

by expeller.

Various Methods Yield of oil

Chucks 58% - 60%

Rotary Mills 62% - 63%

Expellers 63% - 65%

September 2nd , of every year has been designated as coconut day as per the

decision of Asian and Pacific Coconut Community head quarters at Jakarta,

Indonesia. Foundation day of APCC also falls on 2nd Sept. A major coconut

growing countries including India are the members of the APCC.

The celebration of the annual coconut day is aimed at creating more awareness on the

importance of the coconut and focusing world attention to this crop to enhance its

potential in alleviating poverty, encouraging investment in the sector and promote total

development of coconut industry in the member countries. In India coconut

development board is taking the lead in the annual celebration of the coconut day.

3.2 COMPANY PROFILE

“Kerala Kerakarshaka Sahakarna Federation Ltd”, (KERAFED) was registered

under the cooperative societies Act in 1987, with assistance of European

Economic Community, National Cooperative development Corporation and the

40

Government of Kerala.. KERAFED is the Apex Co-operative Federation of

coconut farmers in Kerala and is the largest producer of coconut oil in India. The

federation started commercial production in 1993. The head office of KERAFED

is located in Thiruvananthapuram. KERAFED's coconut oil complex at

Karunagapally in Kollam district is one of the biggest such units in India, with a

capacity of 200 Tons per day.  

The primary objective of Kerafed is to organize coconut growers by bringing them

under the cooperative umbrella and to provide them with all supplies and services to

augment their income base by increased productivity and value additions through the

integrated system of production achievement, storage , processing, diversification and

marketing of coconut oil and all/any products of coconut palm at a price remunerative

to growers and fair to consumers.

As the coconut farmers in Kerala were reeling under the strange hold of powerful p

country trade cartels that consistently manipulate market conditions and dictate price

trend to their advantage , Kerafed aimed at procurement of 50% to60% of the total

coconut / copra produced in the state which will be processed at its own processing unit

and marketed.

KERAFED is the single largest procurers of coconut / copra produced in Kerala from

900 societies all over the state. KERAFED has a good distribution network consisting

of stockiest , dealers and suppliers.

The Objectives of KERAFED are:

To reduce edible oil imports.

To provide an impulse effect on internal production of coconut.

To develop the agricultural potential of Kerala State.

To strengthen the co-operative movement.

41

To secure the marketing of coconut and its by-products, thereby assuring

economic prices to the growers.

To establish and manage infrastructure facilities for production and supply of

inputs and processing, manufacturing and marketing of products and by

products of coconut palm.

To undertake research and development activities on production , processing

and marketing.

 Thus to increase the income of 29 lakh farmers' families and create employment

opportunities is the industrial sector. 

For effectively and efficiently carrying out the administrative and operational

practices on a day to day basis, the state is divided into three region, .the southern

region, the northern region and central region. The southern region consists of the

revenue districts - Thiruvananthapurm, Kollam, Pathanamthitta, and Alaphuzha,

the northern region consists of Malappuram, Kozhikkode, Wayanad, Kannur and

Kasargode districts and the central region consists of Kottayam, Idukki,

Ernakulam,Thrissur, Palaghat districts. 300 primary agricultural credit

cooperatives societies in each region are members of the federation to undertake

production, procurement, marketing activities at the farmer’s level. For

processing and product diversification, each region will have one processing

plant with a capacity 200 tones of copra per day.

FARMER FRIENDLY ORGANISATION 

For  over  29 lakh  coconut   farmers  in  the  state,  Kerafed  has  been  a  beacon

although,  offering  them  attractive  support  prices  for  coconut and copra

during unfavorable  market  conditions,  procuring   copra   under   the   price  

support  scheme  on  behalf of NAFED, Government  of  India  and  rendering 

42

value  added  services  to  enhance  their  earnings  through   improved  

productivity,  and   by assisting  them  in production and procurement.

Apart from these, the Federation organises periodic extension activities to help

farmers, like demonstration farms, training camps, exhibitions, seminars and

publication and distribution of bulletins and literature on coconut farming. 

Also  Kerafed  reimburses  the  expenses  for  establishing  copra  driers,  through

the primary agricultural co-operative societies. 

Sl. Members of the Federation

no

1 Government of Kerala 1

2 Kerala state cooperative agricultural 1

3Kerala State Cooperative Agricultural

Development Bank Ltd.1

4 District Cooperative Banks Ltd. 9

5 Primary Cooperative Agricultural Bank 25

6Primary Agricultural Cooperative Credit

Societies898

935 Nos.

Value-Addition unit at the Kerafed Oil Complex Karunagapally

It has been decided that the Kerafed should diversify its activities through a value-addition project. The 5.4-crore project would help produce 1,000 tonnes of desiccated coconut, 2,100 tonnes of coconut cream and 3,500 tonnes of coconut milk annually. As

43

many as 103 lakh coconuts would be required for the project each year. Fifty per cent of the products were to be sold in the domestic market and the remaining exported.

Copra Procurement Process

The coconut farmers deposit their product with the respective Primary

Agricultural Cooperative Society and collect the rate of copra prevailing in the

market on that particular day. Primary Agricultural Cooperative Society on their

part check the quality of the copra and inform the KERAFED about the

procurement details. The respective mobile team officers visit the society and

collect the same after checking the quality and transactional details. This copra is

then transferred to the processing plants.

Product Profile

Processing,plant /Godown

Mobile Team of Kerafed

Primary agricultural cooperative society

Farmers or coconut growers

44

"KERA" Brand of coconut oil is produced by KERAFED from copra of the

finest quality, directly procured from coconut growers in Kerala –“the land of

coconuts”. The copra thus procured is processed using the most modern

technology. In the selection and processing of copra, KERAFED employs strict

quality control measures to ensure product superiority and purity. A unique two

stage filtering process is employed by KERAFED to retain the original aroma

and flavour of coconut oil for a long period. 

"KERA" Brand of coconut oil is known for its quality, purity, longer shelf life and

reasonable price. Its quality is conformity with the grade specifications laid down by

the Bureau of Indian Standards vide IS: 542-1968. Certificate of Authorisation to grade

"KERA" coconut oil under AGMARK has also been obtained. Kera, the branded oil

from KERAFED, apart from being delivered in packages of 100 ml, 200 ml, 500 ml

bottles, half and one litre pouches, 8 ml sachets, one litre pet bottles, 5 kg cans and

15 kg tins, is also marketed in bulk. The raw materials used for these packing are of

virgin / food grade, approved by CFTRI, Mysore / other Government approved

agencies. Secondary packing is done using 3/5 ply corrugated cartons, as per

specifications.  

Apart from meeting the marketing needs in Kerala , Tamilnadu, Karnataka and Andra

Pradesh etc, the programme to popularize the brand in cities like Newdelhi, Banglore,

Mumbai and Kolkata is already on the roll. Kera has gone globally with export to

Middle East countries. Kerafed had tie up with a leading retail chain in Dubai and Abu

Dhabi for the two brands ,cooking oil `Kera' and hair oil `Kera Kesh'.There are also

plans to develop more herbal oil products from coconut, as the federation has recently

introduced 'Kerajam Kesamrudam' herbal oil in the state.

KERA  is  proud to be patronized by millions as the tastiest of all cooking

mediums and  the  most  ideal  hair  oil.  Truly  the  colour of  gold and the smell

of yore, KERA enjoys  an  undisputed  plurality of  the  market  share in

Kerala -a feat achieved by ultimate  customer satisfaction. 

A permanent place in the hearts of housewives, chefs and every food loving

keralites. 

Not resting on the  laurels,  the  thought  process is already at work at Kerafed.

Plans  are afoot  to  enter  into the  field of  producing  highly demanded coconut

45

related  products like  desiccated coconut, coconut cream, bottled tender coconut

water,  coconut  milk and  confectionery products etc. It is hoped that the good

will  of  KERAFED build up by high customer satisfaction by the performance of

products like Kera, can be thus employed to conquer newer domains.

Kerafed at a glimpse…

Integrated development of coconut and coconut products

Copra selection as per BIS parameters for processing

Most sophisticated processing facilities

Quality control laboratory with AGMARK guarantee

By far the largest coconut oil mill in India

Storage capacity of 2100 tones per day

A predominant share of the market in Kerala is enjoyed by Kera, the year at

economical rates.

Safeguards the interests of over 27 lakh coconut farmers in Kerala

The Objectives of KERAFED are:

46

To reduce edible oil imports.

To provide an impulse effect on internal production of coconut.

To develop the agricultural potential of Kerala State.

To strengthen the co-operative movement.

To secure the marketing of coconut and its by-products, thereby assuring

economic prices to the growers.

To establish and manage infrastructure facilities for production and supply of

inputs and processing, manufacturing and marketing of products and by

products of coconut palm.

To undertake research and development activities on production , processing

and marketing.

 Thus to increase the income of 29 lakh farmers' families and create employment

opportunities is the industrial sector. 

For effectively and efficiently carrying out the administrative and operational

practices on a day to day basis, the state is divided into three region, .the southern

region, the northern region and central region. The southern region consists of the

revenue districts - Thiruvananthapurm, Kollam, Pathanamthitta, and Alaphuzha,

the northern region consists of Malappuram, Kozhikkode, Wayanad, Kannur and

Kasargode districts and the central region consists of Kottayam, Idukki,

Ernakulam,Thrissur, Palaghat districts. 300 primary agricultural credit

cooperatives societies in each region are members of the federation to undertake

production, procurement, marketing activities at the farmer’s level. For

processing and product diversification, each region will have one processing

plant with a capacity 200 tones of copra per day.

FARMER FRIENDLY ORGANISATION 

47

For  over  29 lakh  coconut   farmers  in  the  state,  Kerafed  has  been  a  beacon

although,  offering  them  attractive  support  prices  for  coconut and copra

during unfavorable  market  conditions,  procuring   copra   under   the   price  

support  scheme  on  behalf of NAFED, Government  of  India  and  rendering 

value  added  services  to  enhance  their  earnings  through   improved  

productivity,  and   by assisting  them  in production and procurement. Apart

from these, the Federation organises periodic extension activities to help farmers,

like demonstration farms, training camps, exhibitions, seminars and publication

and distribution of bulletins and literature on coconut farming 

Also  Kerafed  reimburses  the  expenses  for  establishing  copra  driers,  through

the primary agricultural co-operative societies. 

Sl. Members of the Federation

no

1 Government of Kerala 1

2 Kerala state cooperative agricultural 1

3Kerala State Cooperative Agricultural

Development Bank Ltd.1

4 District Cooperative Banks Ltd. 9

5 Primary Cooperative Agricultural Bank 25

6Primary Agricultural Cooperative Credit

Societies898

935 Nos.

48

3.3 Training and development of Human Resource

Organization structure

Organization structure is the systematic arrangement of the people working

for the organization to achieve predefined goals . The structure has two

dimensions – horizontal and vertical. The horizontal dimension indicates the

departments and vertical dimension indicate hierarchy.

Board of Management elected by members of the federation is headed by a

Chairman. From those members an executive committee and a Chairman are

elected. The federation has to get the approval from the board before

implementing major decision.

Managing Director appointed by the Government of Kerala is the supreme

authority of the federation, normally an outside person. Director (projects) is

at the top of the organization hierarchy among the employees of the

organization.

The departments in KERAFED are:-

1. Marketing Department.

2. Production Department.

3. Administrative centers.

4. Finance Department.

49

MANAGING DIRECTOR

ADMINISTRATIVE OFFICER

ORGANIZATIONAL CHART

Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

MARKETING

DIRECTOR

SALES MANAGER

ASST.MANAGER

OFFICE MANAGER

ASSISTANT

PRODUCTION

DIRECTOR

MANAGER

ASST.MANAGER

JUNIOR MANAGER

INSPECTORS

HR / AO

HR / ADMIN. MANAGER

Sr. ASSISTANT MANAGER

ASSISTANT MANAGER

SENIOR TYPIST

ASST. TYPIST

ATTANDER

FINANCE

MANAGER

ASST. MANAGER

OFFICE MANAGER

ACCOUNTANT

50

Development of Human Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees.

Productivity – Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees.

Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.

Organization Climate – Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.

Quality – Training and Development helps in improving upon the quality of work and work-life.

Healthy work environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

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Morale – Training and Development helps in improving the morale of the work force.

Image – Training and Development helps in creating a better corporate image.

Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies

Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

Models of Training

Training is a sub-system of the organization because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. Training is a transforming process that requires some input and in turn it produces output in the form of knowledge, skills, and attitudes (KSAs).

1. System Model

2. Instructional System Development Model

3. Transitional model

3.4 Growth and Performance of workers

Employees are the most important asset for the growth of an organisation. Their performance and contribution, plays a very important role in the development of the organisation and making the company keep climbing up the ladder of successes. Like employees are important for an organisation, same ways a job is also very important for

52

the employee to earn his living. It is the only source for the employee to live his life in a more fashioned and a happier way.

Finding the right Job is a very tough task to do, and people across the country face problems in searching the right job for themselves. When an employee comes to an organisation, he is raw for the company, an element, which needs to be polished according to the requirement and environment of the respective organisation. Therefore, the employer needs to work out, on the employee, as how he can be best utilised for adding to the profits of the organisation. Also, there are times, when the employees reach their saturation point, where they get tired of doing the same work each day. At such points, it is the duty of the employers to assess the capabilities of its

employees and see how they can be motivated for work and how their performance can add to

the growth of the organisation.

Following are few of the steps, which can help the employers to produce more out of their work force

Evaluate the performance and the job responsibilities of the employee:

It is the duty of the manger or the boss to check and evaluate, whether the job responsibilities and the duties assigned to employee are according to his capabilities. It is important to check, that he is happy with the roles being assigned and have a good hand on his job and is able to do with all motivation. Timely review and feedback of the job assigned to the employee is also important, so that his willingness and views about the work culture and the responsibilities can be judged. It is again imperative to know that the work environment and the behaviour of the other employees are not creating a barrier in the growth of his performance graph.

Plan out, what needs to be done:

Based on the above evaluation done, the employer needs to plan out what steps can be taken to improve the performance of the employee. Ways should be structured to motivate and add enthusiasm to the work of the employees, so that he is able to give his best output. As per the result of the assessment of the job responsibilities, change in work, in accordance to his interest and capabilities should be added. It is the duty of the employer or the organisation, to see that all its employees are satisfied with the work

53

environment and it also works as a motivational factor to produce profits for the organisation.

Implement the changes required:

After a healthy and a beneficial planning, it's time to implement the changes required. The changes should be done in a way that it does not hurt the emotions of any employee and does not feel offended for the changes done. It should all be done with the positive spirit of adding value to the growth of the organization.

Thus, by following the above steps, it becomes easy for both the employee and the employer to have a positive impact in their work. If the employees are happy with their job, then they would succeed in performing more than required in their tasks, which would at the end turn out to be beneficial for the organization itself. Therefore, it is very important to keep the employees motivated and satisfied to call them as the assets for the company.

Opportunities for growth and development help employees expand their knowledge,

skills and abilities, and apply the competencies they have gained to new situations. The

opportunity to gain new skills and experiences can increase employee motivation and

job satisfaction and help workers more effectively manage job stress. This can translate

into positive gains for the organization by enhancing organizational effectiveness and

improving work quality, as well as by helping the organization attract and retain top-

quality employees. By providing opportunities for growth and development,

organizations can improve the quality of their employees’ work experience and realize

the benefits of developing workers to their full potential.

Opportunities for employee growth and development include:

Continuing education courses

Tuition reimbursement

Career development or counseling services

Skills training provided in-house or through outside training centers

54

Opportunities for promotion and internal career advancement

Coaching, mentoring, and leadership development programs

Segmentation

In the long run, studies show that an employee's performance depends

not only on their satisfaction, but is influenced mainly by their commitment to

their work and to their employer. Depending on the commitment it is also

easier to predict the future employees' behaviour. HRA allows segmenting the

employees into four strategically different groups.

Careerists - valuable, dedicated to their job, efficient, but uncommitted to

the company.

Loyalists - loyal to the company, supportive and promoting the company, less

excitement and dedication to their job tasks.

Passengers - lack dedication to their job and are not devoted to their

company. These people may complain.

Leaders - involved and committed to both job and company, most valuable

company asset.

55

Chapter 4

Chapter 4

4.1 Analysis and Interpretation

56

SWOT Analysis

Employees' attitudes findings in particular areas are important, but insufficient for managers' decision-making. HRA by the help of a statistic analysis assess a real importance of the monitored factors.

Main pillars - highly important, positively perceived by the employees.

Accepted background - factors of low importance showing high degree of employee satisfaction.

Acceptable deficits - rather unimportant, negatively perceived factors.

Hidden dangers - highly important, negatively perceived by the employees.

Strength

1. Brand name ‘Kera’ – has a strong brand image.

2. Quality of products.

3. Most modern machinery for oil extraction .

4. Plants have adequate production capacity.

5. Strong network of primary co-operative societies in the state.

6. Product diversification is possible

Weakness

57

1. Policy formulation and decision making are much affected by

government interference and this result in delay of decision making and

implementation.

2. Use of coconut oil, edible oil is much less in North India. So the market

expansion on northern region restricted.

3. Many times Kerafed is forced to procure copra at a price greater than the

market price, as per the direction of Nafed.

4. Not utilizing the installed capacity of production units.

Opportunity

1. A large portion of the rural population in Kerala is still using the coconut

oil obtained from the country chucks (not the brand oil) so there is a huge

market potential for brand coconut oil in the segment.

2. Advertisement and promotional activities the market can be expanded to

other states.

3. Primary agricultural co-operative societies and co-operative marketing

societies form a large network in the country. Through proper

coordination of the co-operative societies the federation can enhance

procurement and marketing.

4. Adequate support from Nafed, government of Kerala and other agencies.

58

Threat

1. Unfiltered coconut oil obtained from country chucks are available in

market at low price.

2. There are some arguments that coconut oil as edible oil cause health

problems.

3. Heavy competition from private companies.

4. Liberal import policies of Government lead to cheaper substitutes

for coconut oil.

Key Areas

HRA maps out a correlation between chosen key areas and commitment not only for the company as a whole but also for individual groups or units. Results enable to understand how employees perceive their company, company management, immediate superiors and their job. The interview scheme covers the following topics:

Communication and information,

Duties,

Internal environment,

Education,

System of rewards,

work conditions,

Company management,

Total satisfaction with the work.

59

HRA offers:

* Overall situation and general attitude of employees within the particular organization,

* Independent view on employee attitudes and their evaluation,

* Information about employee’s satisfaction and commitment,

* Deep understanding of employee’s motivation,

* Detailed analysis of specific employees segments,

* Ways to strengthen employees’ commitment, their performance and company prosperity.

HRA can be applied in a way that exactly corresponds to the company situation. All in accordance with company capabilities and preferences.

60

Table No: 4.2Age Wise Classification

Age No: of Respondents Percentage

20-30 28 46

31-40 10 16

41-50 15 25

Above 50 7 11

Total 60 100

Interpretation: As per the Age wise classification 20 – 30 age groups are working in the company more than the other groups.

61

Chart No: 4.21

20-30 31-40 41-50 Above 500

5

10

15

20

25

30

35

40

45

50

Age Wise Classification

Age Wise Classification

62

63

Table No: 4.3Gender wise classification

Gender No: of respondents Percentage

Male 35 58.3

Female 25 41.6

Total 60 100

Interpretation: As per the Gender wise classification 58.3 % of employees are Male and 41.4 % are Female. It shows the Female employees strength in this company and their willingness to work and contribute their ideas for the company growth.

64

Chart No: 4.3.1

Male Female0

10

20

30

40

50

60

70

Gender Classification

Gender Classification

65

Experience No: of Respondents Percentage

1 Year 14 23

2-4 Year 8 13

4-6 Years 28 46

Above 6 Years 10 16

Total 60 100

Table No: 4.4Experience of Employees

Interpretation: Most of the employees are having experience more than 4 years. It shows the quality of their work. And they are able to help others for learning methods handle different and difficult situations.

Chart No: 4.4.1

66

1 Year 2-4 Year 4-6 Years Above 6 Years

0

5

10

15

20

25

30

35

40

45

50

Experience of the Employees

Experience of the Employees

67

Table No: 4.5 Satisfaction of the present Training program

Particulars No: of respondents Percentage

Yes 42 70

No 18 30

Total 60 100

Interpretation: Current training programs are not fully satisfied every workers and only 70 % of workers are fully satisfied.

68

Chart No: 4.5.1

70%

30%

Satisfaction of the present Training program

69

Table No: 4.6Table Showing the Present Training Programs

Particulars No: of respondents Percentage

Adequate 35 58

Good 19 31

Poor 6 10

Very poor 0 0

Total 60 100

70

Chart No: 4.6.1

Adequate Good Poor Very poor0

10

20

30

40

50

60

70

Present Training Programs

Present Training Programs

71

Table No: 4.7Necessary for Training

Particulars No: of respondents Percentage

High necessary 18 30

Necessary 30 50

Unnecessary 12 20

Total 60 100

72

Interpretation: 30 % of employees are expressed high necessity of the more training programs and 50 % of employees are required more training programs.

Chart No: 4.7.1

High necessary Necessary Unnecessary0

10

20

30

40

50

60

Necessary for Training

hg

73

Chapter 5

74

Chapter 5

5.1 FINDINGS

1) KERAFED gives maximum benefits to the coconut farmers and at the

same time provides high quality value added products to the

consumers.

2) Employees are not sufficient for the current requirements of the

company.

3) Trade profit is less than the previous year. So the company is not able

to more facilities or benefits for their employees.

4) Permanent and temporary staff’s are self motivated so they

contributing maximum inputs of their efficiency for the growth of the

company.

75

5) Kerafed not using any camicals in their products so it is very difficult

to keep and storage for a long period. So the company is not

completely utilising manpower in the some fields of organisation.

5.2 SUGGESTION

The company must strengthen its employment capacity to find new markets.

The company should Recruit more employees and place at right position.

The company should conduct more traing programmes for their employees to update their knowledge.

Build a foundation.

It’s important to build a solid foundation for the employees so they feel

invested in the company. Tell them about the history of the business and vision

for the future. Ask them about their expectations and career goals, as well as

how can help them feel part of the team. When any new employee starts, make

sure he or she receives a thorough welcome orientation.

Create a positive environment.

76

Promote an office atmosphere that makes all employees feel worthwhile and

important. Don’t play favorites with your staff. Keep office doors open and let

folks know they can always approach you with questions or concerns. A happy

office is a productive office.

5.3 CONCLUSION

During the period of my study at KERAFED , I got an opportunity to

understand different functions of a reputed business organization. This report

covers areas that are very important in a manufacturing firm.

The Kerala Kera Karshaka Sahadarana Federation Limited No : 4370 ,is one of

the india’s premier coconut oil companies , and has an all important role in the

industrial as well as social scenario in Kerala. The primary objective of the

federation is to provide maxinun benefits to the coconut farmers and also high

quality products to the consumers. The socio-economic development of the

state is greatly dependent on the prosperity of such industries. KERAFED’S oil

mill at karunagapally is the largest oil mill in the state with an installed

capacity of about 200 tonnes per day. Profit maximization is the prime

objective or the aim of every organization. At the same time it is the fact that

only with the customer satisfaction, the company is able to achieve this aim.

Therefore from the organization study it is clear that to some extend

KERAFED is able to reach this goal.

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I express my sincere thanks to my guide who have helped me from beginning to

the end of my study in Human Resource Development. I also extend my thanks

to the entire staff of KERAFED for providing me relevant information for

conducting the study.

BIBLIOGRAPHY

Journals

Annual Reports

Company records

WWW. Kerafed.com

78

QUESTIONNAIRE

Name : ………………………

Address : ………………………

…………………………

…………………………

…………………………

1) Age :

a) 20 – 30 b) 31 – 40

c) 41 – 50 d) Above 50 years

2) Gender :

a) Male b) Female

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3) Experience :

a) 0 - 2 b) 2 - 4

c) 4 – 6 d) Above 6 years

4) Satisfaction on the present training programs ?

a) Yes b) No

5) Level of satisfaction on the present training programs?

a) Adequate b) Good

c) Poor d) Very poor

6) Necessary level of training?

80

a) High necessary

b) Necessary

c) Un necessary

81