Fertilizers And Chemicals Travancore Ltd.

CHAPTER 5-DEPARTMENTS

School of Management and Business 28 Studies

Fertilizers And Chemicals Travancore Ltd.

5.1 FINANCE DEPARTMENT

Director (Finance)

DGM (IA)

DGM (Finance)

Mgr (IA)

CM (Sales)

CM (Costing, MIS, Budget)

CM (Bills & Mat)

CM (Gen A/C)

Mgr (cash, Bank & Payroll)

Mgr (Tax & Duties)

Fig. 5.1: Structure of Finance Department Any organization whether big or bad, depends largely on its finance department. This is the very department which is responsible to a great extent for the growth of the organization. Some of the main functions of the financial departments are Payroll, billing, Preparation of journal, ledger and trial balance, Banking, Financial resources & materials accounting, Budget preparation, Cost accounting, Auditing, Preparation of financial statements & reports, Corporate Planning. Finance department is divided into five sections for carrying out its process. They are: Bills & Materials Sales Costing, MIS, Budget

School of Management and Business 29 Studies

Fertilizers And Chemicals Travancore Ltd. Cash, bank & Payroll and Tax & duties

5.1.1 BILLS & MATERIALS The main functions are Stores accounting and Receiving, Dispatch and holding of bills. 3 Bills section Bills section deals with the contract account for execution of civil works and other construction/erection, maintenance and services. It includes: 1. Sale of tender form 2. Remittance of EMD 3. Remittance of security deposit 5. Issue of materials to the extractors 5. Receipts to certified bill in the specified format 6. Security on running account bills and final bill 7. Statutory procedures and formalities in works contract 2 Stores accounting Main functions of stores accounting are: 1. Receipts of stores 2. Issue of stores 3. Returns of stores 5. Value adjustments 5. Reconciliation with control accounts 6. Unconsumed materials lying at site at the close of financial year 5.1.2 SALES ACCOUNTING Some of the functions are 1. Accountability for selling and distribution of products & byproducts 2. Recording the transaction 3. Transfer of information from depots to HO

School of Management and Business 30 Studies

Fertilizers And Chemicals Travancore Ltd. 5. Compilation of reports 5.1.3 COSTING, MIS AND BUDGET SECTION This section is concerned with ascertaining the cost of production, providing information, helping to prepare a budget, forecasting the performance and finally making a plan. 1 Cost accounting Identification of the cost centre - Direct expenses is recorded to the respective cost centre. Indirect expenses are separately booked and allocated at the end of the year. Cost sheet is prepared in two ways. The item in the cost sheet is compiled on the basis of process of the products or on the basis of elements of the product. Cost centre in Udyogamandal Division: Process water, DM water, Steam, CPP, Ammonia, Sulphuric Acid, So2/ Oleum, Phosphoric acid, Pollution Control, Ammonium Sulphate, Ammonium Phosphate Classification of cost Variable cost - Raw Materials, Intermediate products, Consumable, Products, Utilities, Packing materials, Pollution control expenses. Fixed cost - Fixed cost of a product mainly consists of conversion cost of the product of Salaries and wages (Direct, Indirect, Administration Plant & Maintenance),Staff welfare expenses, Insurance, maintenance,

Depreciation, Factory overheads, Administrative overheads, Head office overheads, Gratuity and bonus, Interest on term loans and working capital. 2 MIS (Management Information System) To provide the management with vital facts which affects the efficient running of the business for decision making on planning, organizing and controlling the major activities of the organization and initiating suitable action. MIS Briefly consists of: 1. Divisional Reports - Two monthly reports for each division. One for the finance department and another for the GMs office School of Management and Business 31 Studies

Fertilizers And Chemicals Travancore Ltd. 2. P & L Account-Statement and its analysis. 3. Production performance of the division. 4. Inventory position. 5. Cost of production - Actual and budget for the month. 6. Specific information important for the management - Major projects, man hour utilization etc.

3 Budgeting Two types of budget: Revenue and Capital budget. Two types of estimates-: Budget and revised estimate Revenue Budget Every year early in August detailed production targets and norms for consumption of materials for remaining portion of the current year and also for the next financial year are prepared by the head of Divisions. Capital Expenditure Shows all items of capital expenditure to be undertaken during the budget period like expenditure on acquisition of new assets like machinery, furniture and office equipments which have reasonable life; expansion of existing facilities and modification and improvements to plant and machinery resulting in i) ii) iii) iv) Increase in capacity. Increase in useful life. Improvement in quality of output. Reduction in cost of output is treated as capital expenditure.

Budget revision

School of Management and Business 32 Studies

Fertilizers And Chemicals Travancore Ltd. While preparing the next years revenue budget, the revenue budget for the current year is revised, based on the actual from April to September and the anticipated trend for the remaining period. Monthly report On closing of the accounts of the months a monthly P & L account is prepared for each Division and the same is send it to the Division Head, FD and CMD. This report would give a comparison of the actual for every month against budgeted performance. 5.1.5 CASH, BANK AND PAYROLL SECTION This section is concerned more with the day to day activities and less of future forecasting & planning.

1. Cash and Bank Accounts Section The various functions include: 1. Receipt of cash, cheques, bank drafts, and postal money orders 2. Handling of bank deposits/withdrawals, custody of cash and inter unit transfer of funds 3. Maintenance of petty cash books and cash books 4. Reconciliation of bank accounts 5. Any other duties assigned by authorized officer 2. Payroll Section Functions of the section are: 1. Preparation and disbursement of salaries and wages to managerial and nonmanagerial employees. 2. Affect various recoveries through payroll and remit the same to concerned agencies.

School of Management and Business 33 Studies

Fertilizers And Chemicals Travancore Ltd. 3. Processing of various personal payments advances. 4. Keeps books of account for the above transaction. 5.1.5 TAX & DUTIES SECTION This section is concerned with calculation & payment of various taxes and duties to the Government. 5.1.6 BANKERS SUPPORTING FACT: State Bank of Travancore, State Bank of Hyderabad, State Bank of India, Bank of Baroda, Bank of India, Canara Bank, & Dena Bank. 5.1.7 AUDITING Various types of audits in FACT are: Statutory audit, Government audit, Cost audit, Income tax audit, Sales tax audit and Internal audit. Some of the main functions of Internal Audit Section are; 1. Operational/ systems/ management audit 2. Proprietary audit and audit of sanctions 3. Routine audit 5. Surprise verification of physical stocks

5.2 MATERIALS DEPARTMENT

GM Material

CM Purchase RM Dy. CM Raw Materials

Mgr Stores

Mgr Traffic

Mgr F.F.T.S

Mgr E.S.S Fig. 5.2: Structure of Materials Department

School of Management and Business 34 Studies

Fertilizers And Chemicals Travancore Ltd. The functions of materials departments are; Importing raw materials under the approval of safe purchase committee constituted by the Board of Directors. Maintaining adequate raw materials needed for production. Procurement of Machineries, Intermediaries, equipment & spares. Inspection of Materials. Transportation of Raw materials, Products and Byproducts. Accountability for materials. Purchase of stationary and other Equipment needed by individual department. Vendor Development.

This materials department is divided into 3 Sub Departments. They are: Purchase Department Stores Department Traffic (Logistics) Department

5.2.1 Purchase department The purchase procedure covers the following areas of procurement of goods and services for the company. 1. Capital items (For project and other purposes). 2. Equipment and spares. 3. Raw material & Intermediary materials 5. Package items involving design, supply, erection and commissioning. Purchase Department is again divided into 3 sections. They are:

School of Management and Business 35 Studies

Fertilizers And Chemicals Travancore Ltd. Raw materials Equipment spares and supplies FEDO & FEW Transport, Contracts and Stores

5.2.2 Stores department The functions of stores department are; Receiving Holding Inventory Control Issuing Disposal

5.2.3 Traffic (logistics) department Traffic department is responsible for the dispatch of products to various markets. They maintain contacts with market department and production departments. The dispatch section of marketing division gives the demand of various depots in each state to the traffic department. Based on this, Schedules are formed and product is dispatched.

5.3 PRODUCTION DEPARTMENT

JGM (UD)

School of Management and Business 36 Studies CM (Production)

MAINTENANCE C.M.E PRODUCTION Ammonium Phosphate C.S.P

Fertilizers And Chemicals Travancore Ltd.

Ammonia

Ammonium Sulphate

Caprolactum

Phosphoric Acid

Sulphuric Acid

Fig. 5.3: Structure of Production Department Annual production target for the next year are prepared based on installed production capacity of the plant and production data for the previous year. Necessary feedback is also taken from marketing while fixing the production targets. The production targets thus fixed are presented to the corporate office for review and approval by CMD, the plant managers are informed the same. The production and consumption ratios for the previous years are duly considered. All the datas are complied to form the production budget. This production budget then acts as the basis for further performance monitoring. Based on the production plan, purchase department initiates action for procuring raw materials. In the event of any change in the raw material, requirements are intimated to the purchase department. Production planning department receives data from all the plant and other interfacing departments and compiles them. Various MIS reports- daily production reports, monthly reports and yearly reports- are sent to the management

School of Management and Business 37 Studies

Fertilizers And Chemicals Travancore Ltd. The functions of production department are; planning daily production according to annual target, Submitting Plan to govt. and getting approval, Monitoring actual production & checking any deviation, making revision plans according to actual production, Maintenance of plants. Various sections in production planning are; 1. Ammonia plant 2. Sulphuric acid plant 3. Phosphoric acid plant 4. Complex fertilizer plant 5. Petrochemical division 5.3.1 Ammonia plant The capacity of the Ammonia plant is 900 TPD. The investment for the plant was about Rs.618 Crores. The main raw materials required are hydrogen and nitrogen .Hydrogen is obtained from Naptha (which is acquired through pipe line from BPCL).There is also a captive plant which enables continuous power supply. The plant has economy scale size and employs state of Art technology for the process engineering and control systems. 5.3.2 Sulphuric acid plant The Sulphuric acid plant is designed to produce 1000 TPD of monohydrate. The plant is based on the double conversion, double absorption process and was designed by FEDO in collaboration with Davy power gas Plant. This produces 200 tonnes of oleum and 500 tonnes of sulphuric acid. It supplies sulphuric acid to the petrochemical division for the production of sulphur dioxide. 5.3.3 Phosphoric acid plant The Phosphoric acid plant is designed to produce 360 TPD of P205 through the dehydrate route. The plant designed by FEDO in collaboration with Messer society de

School of Management and Business 38 Studies

Fertilizers And Chemicals Travancore Ltd. prayon of Belgium employs the prayon convertible process to give a product having strength of 30% P205. A separate concentration section is provided to concentrate this weak acid to strong acid having strength of 55% P205. 5.3.5Complex fertilizer plant The complex fertilizer plant as designed was to produce quantities of N P K fertilizers of various grades such as 17:17:17, 28:28:0, 18:36:0, 25:12:12:,11:12:22 and 0:56:0 in two trains each having a capacity of 50 to 56 TPH depending on the grade produced. FACTOMFOS is the premium product of FACT. There is also an in house phosphoric acid plant of 100 TPD. But due to the scarcity of raw material rock phosphate, its not being functional anymore. Davy designed the plant power gas, inc. USA and employs the well known TVA granulation process. 5.3.5 Petrochemical division FACT PD is one of the two manufacturers of Caprolactum in India. They have strictly adhered to documented quality system. In Feb 1996, FACT PD was certified to ISO 9002 (1995) and ISO 15001(1996). FACT Caprolactam plant was built with license and know-how from the world leaders in Caprolactam technology. The plant can produce 50000 TPA of Caprolactam and 2,25000 TPA of ammonium sulphate as coproduct. FACT Caprolactam is available in 25 kg packed in multilayer bag. Caprolactam is a popular monomer of the versatile Nylon-6 polyamide. Textile yarn manufactured from Nylon-6 exhibits fine drape, high flexibility, biological and chemical stability. Nylon-6 is widely used in the manufacturing of fish nets. The other plants in PD are Anone plant, Hyam plant, Cyclohexane plant, and Captive power plant and Replacement Ammonia plant. Products from these plants are used for the production of Caprolactam and Ammonium sulphate

School of Management and Business 39 Studies

Fertilizers And Chemicals Travancore Ltd.

5.5 MARKETING DEPARTMENT

DIR (Marketing)

GM (Marketing)

CM Sales

CM Distribution

C.Ag. Agronomy

AM (KL)

AM (TN)

AM (KAR)

AM (AP)

C. Ag -CHIEF AGRONOMIST, AM - AREA MANAGER Fig. 5.5: Structure of Marketing Department The key success of any business is definitely the quality of the product but somehow, there is something that has more important role as the key to the success of the business. This key element is referred to as marketing. Marketing here also consists of promotion, advertising etc. usually it is said that the marketing and advertising costs of the business could reach upto 80 percentage of the total production costs. This implies that marketing plays a very significant role in the success of any business enterprise. Thus the life of the company does not depend on the director, but the marketing manager and the staff. The functions of marketing department are; Processing and sending replies to audit queries at the divisional level Sales force motivation through internal and external training programs

School of Management and Business 40 Studies

Fertilizers And Chemicals Travancore Ltd. The marketing department consists of various sub departments organized on the basis of their function. They are: 1. Sales Department 2. Distribution Department 3. Agronomy Department 5.5.1 Sales Department The sales department is headed by a Chief Manager who is responsible for sales coordination of function across various depots, conduct an effective market research for analyzing market and calculating the demand and finally promote the sales of FACT products. FACT today holds major market share in Kerala, 11% in Karnataka and 6% in other states. FACT over the years have innovated various techniques of promotion. Many of them are recognized as effective tools of promotion by national and international agencies. These techniques are mainly grouped into two: i) Mass Communication Techniques This method involves catering to number of people in the shortest time possible. Advertisement is done through Films ,Exhibition, Radio jingles, Hoardings, Posters , Farmers awareness programmes in AIR , Wall Painting etc. ii) Personal Contact Method As the name implies, in this method, more personal and closer contact with farmers are developed through promotional methods. The methods adopted through FACT are through demonstrations, soil testing, seminars , study classes , dealer training etc. FACT has converted its major selling points into Agro service centers rendering service to farmers. These centers advice the farmers on modern farm management techniques, credit availability, marketing prospects etc. It also prepares detailed farm plan for each farmer according to his agriculture pattern. FACT is the pioneer in fertilizer education and sales promotion programmes. These consists of fertilizer festivals, study classes , seminars , etc within an ideal

School of Management and Business 41 Studies

Fertilizers And Chemicals Travancore Ltd. blend of information and entertainment to drive home the message of balanced fertilizer use for increasing crop production. 5.5.2 Distribution Department Physical distribution of products is a major function of the marketing division. Chief Distribution Manager is entrusted with planning, monitoring and implementing of product distribution and co-coordinating the movement from production units and ports. Marketing operations of FACT in respect of fertilizers follow a completely centralized pattern. The marketing network of FACT is spread over the southern states of Kerala, Tamil Nadu, Pondicherry, Karnataka and Andhra Pradesh. In each state there are 5 area office and 16 regional offices. The distribution network consists of 100 Agro Service Centers, 50 field storage points and over 7900 retail selling points in these states, and serves the farmers by the supply of fertilizers and agronomy advice. Through innovative farmer education and fertilizer promotion programs, FACT has created awareness about scientific cultivation and fertilizer use. The states offices are called area and their subdivisions are called regions. 5.5.3 Agronomy Department Fertilizer sales are highly dependent on farmers awareness on modern techniques of farming by using fertilizer for high productivity. Awareness creation involves an elaborate and well-planned farmer education and fertilizer promotion program, which in turn calls for a multiplicity of activities. Chief Agronomist has overall charge of the agronomy department, which renders technical guidance, and supervision of all agronomy services.

School of Management and Business 42 Studies

Fertilizers And Chemicals Travancore Ltd.

5.5. PUBLIC RELATIONS DEPARTMENT

The image builder of the organization is Public Relations Department, as the person in the department maintains close relationship with the public and media to carry out all related functions. Public Relations Department is under the control of Public Relation Officer. The backbone of the brand building process is public relation officer. Public Relation is the latest entry to the management discipline when the company starts expanding and becomes relevant when the market competition increases. Any novel idea or concept introduced by the companies in the market is part of public relations. Public Relations become saturated when the conventional methods are saturated and the company should move one step ahead in the competition. Public Relation Departments role is proportional rate with competition. Whenever there is competition there should be a role of Public Relations. No Competition-No need of Public Relations

Two aspects of PUBLIC RELATIONS

1. Internal Public Relations 2. External Public Relations

1. Internal Public Relations

The best tool for internal PUBLIC RELATIONS is FACT News (House magazine) and is circulated to all employees on a monthly basis. It is to bind the employees together to make them a part of FACT family. School of Management and Business 43 Studies

Fertilizers And Chemicals Travancore Ltd.

2. External Public Relations

Press meetings are conducted twice in a year, Press release; handouts are the main tools for external PUBLIC RELATIONS.

5.6 QUALITY CONTROL DEPARTMENT

Mgr (Q.C)

Shift-In Charge

Chemist

Lab Assistant Fig. 5.6: Structure of Quality Control Department The functions of quality control department are; Quality checking Process control assurance Pollution control

5.5.1 Quality checking

School of Management and Business 44 Studies

Fertilizers And Chemicals Travancore Ltd. Raw material-Pre and post dispatch check: It is usually done by FACT Quality control cell or external agency if expertise is required. Product Quality checks: Byproduct Quality check-only in case of byproducts sold. 5.5.2 Process control assurance The samples are tested in the Lab. There is one Main Lab for UD division and Sub Labs for each plant. 5.5.3 Pollution control It is done by taking air and water samples. If samples contain more than required level of effluent, then the matter is reported to the plant manager, Quality department and GM (UC).

5.7 RESEARCH & DEVELOPMENT DEPARTMENT

Mgr (R & D)

Asst Mgr

Officer

Staffs Fig: 5.7 Structure of Research & Development Department FACT began research in a modest scale in 1962 with just four scientists. Over the years this nucleus has grown in to a full-fledged but compact integrated division with a team of about 12 personnel. The division is recognized by the ministry of science and technology for in house research and by the ministry of environment and forests, Govt. of India. R&D plays a vital role in giving the company and its products the cutting edge

School of Management and Business 45 Studies

Fertilizers And Chemicals Travancore Ltd. in a competitive environment. Facts well-equipped R&D section has advanced facilities equipped with pilot plants, modern equipment and accessories. It is backed by a team of highly motivated research scientists. Various processes have been developed and patented by FACT R&D division of which several have been commercialized successfully. Field trials on slow release fertilizers developed by the division have been successful. Production of biofertilizers has commenced with an installed capacity of 150tonnes per annum. FACT R&D division has got modern and sophisticated laboratory and the facilities are continuously expanded and updated. A wide variety of tests conforming to Indian and international standards are carried out.

5.8 FIRE &SAFETY DEPARTMENT

JGM (UD)

Mgr (Fire)

Mgr (Safety)

Inspectors

Assistants

Fireman

Inspectors

Fig.5.8 Structure of Fire & Safety Department As per the factorys ACT 1958, any organization with more than 1000 employees or for Industries classified as Major hazardous unit (MHU) by the Govt. of India, requires a safety department. FACT has well established safety departments to

School of Management and Business 46 Studies

Fertilizers And Chemicals Travancore Ltd. look after the needs of respective divisions. It is the firm policy of the company that no operation is so important and no job is so urgent that one cannot find time to perform it safely. Further, it aims to see that an employee remain as healthy as he entered the plant, by providing safe environment and safe working conditions, safe tools and procedures to carry out all operations.

FUNCTIONS
1. Functions of safety department is not limited to reporting accidents and arranging compensation, it also involves making a detailed investigation regarding the cause of the accident, communicates suggestion to the concerned authority and takes necessary steps to improve the condition and to avoid further occurrence of similar accidents. 2. Prevention at source by correction of unsafe acts, unsafe situations or both. Good preventive maintenance programme, ensuring material quality etc. 3. By sticking the factory to the Factories Act and regulation and laid down safety procedures. 5. Bringing up all levels of working to a correct safety attitude through training and interaction. 5. In addition to the safety department, safety committee is set up to promote active participation at all levels. Safety committee meets once in two months. 6. Housekeeping inspection committee is set up to inspect the whole factory area at least thrice in a year and decides inter-departmental housekeeping awards. 7. A safety manual highlighting safety practices/instructions has been prepared and distributed among employees as guidelines. 5.8.1 PROCESSES IN FIRE &SAFETY DEPARTMENT

School of Management and Business 47 Studies

Fertilizers And Chemicals Travancore Ltd. 1. Training a. Taking safety measures b. Emergency action 2. Checking complaints with safe guards a. Departmental inspection b. Measurement with sensors 3. Acting in case of emergency

5.9. HUMAN RESOURCE DEPARTMENT

CMD

DIRECTOR (TECHNICAL) GM (HR)

School of Management and Business 48 Studies

Fertilizers And Chemicals Travancore Ltd. CM (EST) CM (IR) CM (T&D) CM (IE)

MANAGER (WELFARE)

MANAGER (LEGAL)

MANAGER (PR)

Fig 5.9 organizational chart of HR Department Human resources are a term use to describe the individuals who comprise the work force of an organization. Human Resource management is one of the most complex and challenging fields of endeavour. Its considered to be the most expensive and important resource of every organization. In FACT the scope of Human resource department is very vast. The basic HR functions include all the basic HR function that is ought to be performed by them. This includes recruitment, selection, induction, training and development, motivating the employees, performance appraisal, grievance handling etc. HR department deals with the basic personnel and general administrative functions of the company. As the part of cost reduction measures from 1998 onwards FACT reduces its employees strength. FACT had more than 9000 employees earlier, but it is now reduced to approximately 3139 employees by successful implementation of Voluntary Retirement Scheme (VRS). From selection to recruitment, the HR department of FACT is there to do all things which are necessary for the betterment of employees and for the growth of the organization.

5.9.1 OBJECTIVES OF HR DEPARTMENT

1. To maintain the optimum manpower required to sustain the growth of the organization. 2. To provide, create, utilize, and motivate employees to accomplish organizational goals.

School of Management and Business 49 Studies

Fertilizers And Chemicals Travancore Ltd. 3. To manage and train the Human Resource to ensure their personal and organizational development. 5. Maintain high morale, encourage value system and create environment of trust and mutuality of interest. 5. To provide attractive incentives, rewards and other benefits to ensure retention of competent employees

5.9.2 FUNCTIONS OF HR DEPARTMENT

A. ESTABLISHMENT FUNCTONS Recruitment and Selection

The recruitment policy is done as per prescribed recruitment specification with proper authority appointment by board of directors. The following are the sources of recruitment 1. Employment exchange as per provisions of employment exchange act 2. Employees on deputation from government 3. Apprentices who completed training in FACT. 5. Casual labours who were initially taken from employment exchange 5. Transfer from public sector undertakings. Performance Appraisal

Performance appraisal in FACT started in 1962.in 1985 the systems was further revised to include assessment ,assessment at training needs and performance 32tilizatio, potential. Continues evaluation of performance of employees and appropriate suggestion at correct time will help to improve their performance. For managerial employees, self appraisal system is adopted. Rating is given according to some scales like job knowledge, quality of work. Redressal of Employees Grievances

FACT has a systematic mechanism to handle the grievances. There is different mechanism for managerial and non managerial employees 1. Handling of managerial grievances School of Management and Business 50 Studies

Fertilizers And Chemicals Travancore Ltd. The issues that lead to grievances in this level relate to work, work place, transfer, promotion etc. The concerned officer will bring the grievance orally to the next immediate superior officer. If the issue is not resolved at this stage, officer submits a written petition to CMD. Normally all grievances arise out of decision taken at the division level shall be processed within the time. 2. Handling of non managerial grievances The major issues are relating to wage payment, complaints against colleagues etc. According to the procedure the trade union will present the grievances. At first stage the employee in person will take up his grievance with foreman or assistant manager. The answer will be given within 58 hours. If it is not satisfactory to the employee, either he in person or accompanied by his department will present his grievance to the head of department for solution. If it is also not satisfactory to the employee, he can request to forward the grievance to the grievance committee consisting of representative of management, unions and department where the solution would be given. 3. Training The training and development activities of the company have been started from April 2005. With this arrangement the Management Development Centre (MDC), the training centre of Cochin division, Udyogamandal division and the petro-chemical division have been combined into one department called FACT Training Centre. Centralization was effected with a view to utilizing all resources productively and to identify training needs of employees based on a uniform approach and imparting required training. B. Industrial Relation Function Industrial relation operates only within the organization .the inter-organizational relation is handled by the corporate cadre.60-70% of management time is lost in resolving IR issues. Employees have to follow the standing orders approved by Labour Department of Government of Kerala. Standing order is a book containing DOS & DONTS. Whenever there is a violation of these rules or misconduct by employees there is

School of Management and Business 51 Studies

Fertilizers And Chemicals Travancore Ltd. procedure for punishment including principle of natural justice. Employees will be given a chance to explain the reason for such violation. In organizations there will be tendency to employees to join in trade unions for protecting their own rights and help the management to run the organization in a good manner. In various divisions of FACT there are total of ten recognized trade unions functioning UDYOGMANDAL DIVISION 1. FACT employees association 2. FACT workers union 3. FACT employers congress (INTUC) 5. FACT employees organization PETROCHEMICAL DIVISION 1. FACT employees association 2. FACT workers organization COCHIN DIVISION 1. FACT employees union 2. FACT employees association 3. FACT workers congress FEDO 1. FEDO employees association 2. FEDO employees congress

C. Welfare Functions

School of Management and Business 52 Studies

Fertilizers And Chemicals Travancore Ltd.

a. Statutory schemes
1. Employees State Insurance (ESI) 2. Provident Fund and Miscellaneous Provision Act 1952-exempted scheme in FACT 3. Payment of Gratuity Act 1972 5. Kerala Labor Welfare Fund Board Rules, 1975 5. Industrial Employment (standing orders) Act, 1956 6. Factories Act 1958covers (health, safety, welfare)

b. Nonstatutory schemes
1. Family relief fund 2. Superannuation benefit fund 3. Family pension scheme of the company 5. Retirement benefit fund 5. Employees Welfare Fund 6. Uniform 7. Childrens education allowance 8. Medical allowance 9. Leave and holidays

c. Incentive schemes
1. Incentives for employees 2. Incentives to promote Hindi 3. FACT Merit Award 5. FACT Service Award 5. Incentives to promote sports and players.

d. Voluntary schemes
1. Contributory Health Scheme 2. Sports and Recreation 3. FACT employees consumer co-operative society 5. FACT employees Housing co-operative society 5. School facilities 6. Company accommodation (quarters facility)

D. Industrial Engineering
The main objective of this section is to make effective 36tilization of the manpower resources and restructuring it for the benefit of the organization.

School of Management and Business 53 Studies

Fertilizers And Chemicals Travancore Ltd. Main functions are 1. Manpower planning that compose of manpower audit and forecast future requirements 2. Custodian of manpower inventory 3. Work study a. Removing system bottlenecks b. Production incentive etc 5. Maintenance scheduling 5. Work environment study 6. Employee problem analysis Working Time The working time of administration section and workers are different. The administration section works from 8AM to 5PM. The workers work on shift basis. There are 3 shifts 1.8AM-5PM 2.5PM-12PM 3.12PM-8AM

5.10. TRAINING DEPARTMENT

CM (Training) School of Management and Business 54 Studies INSTRUCTORS OFFICER (Training)

Fertilizers And Chemicals Travancore Ltd. Fig: 5.10 Organization Structure of Training Department The training and development activities of the company have been centralized with effect from April 2005.Traiing centre of FACT has started job oriented courses in Fire & MGR (Training)

Safety Engineering. New courses in Heavy equipment operation and maintenance, welding technology and Process plant operation are being organized. These courses are planned to be offered in association with Governmental agencies and statutory bodies. The aim is to convert the training centre into a Skill Development Academy with a view to provide facilities for skill development and making educated youth employable. STAFFS

5.10.1 FUNCTIONS
1. Training officers and workers of the company as a whole in identified areas 2. Meeting the obligation of apprentice Act 1961/1973 3. Facilitating post qualification training, inplant training and project work to students 5. Facility for employees to attend external training programmes.

5.10.2 CHALLENGES TO TRAINING

1. Improper feedback 2. Improper selection of employees from the various departments. 3. Limited time available due to the pressure of production tar.

5.10.3 Training programs

a. Employee Developments Programs FACT Training Centre conducts training programs for Supervisory/Managerial and NonManagerial Employees of FACT and other companies/organizations in Kerala. The

School of Management and Business 55 Studies

Fertilizers And Chemicals Travancore Ltd. training centre includes Programs on Refresher training in various branches of knowledge like Mechanical, Electrical, Instrumentation, Civil Unit Operations, general topics related to HRD, ISO standards, Safety, Health, Environment, Energy Conservation etc. b. Skill Development Programs FACT Training Centre is conducting a one-year full time diploma course in Fire & Safety Engineering. It also conducts Certification course in Heavy Equipment Operation, Instrumentation Maintenance & Welding. c. Apprenticeship Training FACT Training Centre is an approved Centre for Apprenticeship under Board of Apprenticeship Training/Regional Directorate of Apprenticeship Training Chennai. d. Academic programs Technical & Non-Technical it includes In Plant Training/Project work for Engineering/Professional students.

5.11 COMPUTER SERVICE DEPARTMENT

Fig 5.11 organization structure of computer department

School of Management and Business 56 Studies

Fertilizers And Chemicals Travancore Ltd. CHIEF MANAGER

CHIEF MANAGER

CHIEF MANAGER

CHIEF MANAGER

CHIEF MANAGER The computer department of fact was launched in the year 1965, with the introduction of first generation computers in finance to meet the growing need for the speedy data processing. This multi system computer department is constantly updating its hardware and software. They started online computing in1986.The centre is equipped with servers in all its divisions connected by FACT NET. A complete implementation and interlinking of various departments were completed in 2004.

5.11.1 OBJECTIVES
To keep the management abreast of the fast paced technological changes in the field of information technology and recommending timely enhancements of the IT resources in the enterprise. To project FACT into the promising area of e-commerce as soon as the technology is adopted in a big way in the Indian business sector.

5.11.2. FUNCTIONS OF COMPUTER DEPARTMENT

Planning and procurement of computer systems in all divisions Software development and system support to all divisions User training on computer awareness and applications Maintenance of FACTNET connecting all divisions Process data and prepare relevant information for various levels of management for appropriate and speedy decision making Prompt and efficient services for meeting information requirements of the employer, payment of wages and settlement of claims

5.12 VIGILANCE DEPARTMENT

CVO (FACT)

School of Management and Business 57 Studies

Fertilizers And Chemicals Travancore Ltd.

Chief Manager

DY Chief Manager

Inspector Fig.5.12: Structure of Vigilance Department Vigilance Department of FACT is headed by a Chief Vigilance Officer (C.V.O), who possesses the status rank and perquisites of a Functional Director. Vigilance is an integral part of the management function. It has adopted preventive vigilance as the main theme. The stress is on transparency and accountability in the working of the company. Anonymous complaints are not taken. Vigilance Officers are deputed from time to time to speak on vigilance matters during the service training programmes of the company to sensitize the employees and the public about evil of corruption.

School of Management and Business 58 Studies

Fertilizers And Chemicals Travancore Ltd.

CHAPTER 6- SWOT ANALYSIS

School of Management and Business 59 Studies

Fertilizers And Chemicals Travancore Ltd.

6.1. STRENGTHS
1. High capacity utilization of available space through residential areas, banks, shopping facilities etc. 2. Being a Government firm they get all necessary funds from the Government of India. 3. High quality products. FACTAMFOS is a premium product in complex fertilizers containing sulphur 4. Sustained operating parameters of the plant at good level and productivity of plant at good level 5. Well qualified and technically skilled manpower 6. Good support with farmers/end segment 6. One of the two producers of Caprolactum in India with world-class quality 7. ISO certification to most of the divisions 9. Strong dealer network in south India 10. Good engineering and consultancy design, perhaps one among the best in Indian fertilizer segment 11. FEDO has own process know-how for hydrogen, sulphuric acid, ammonium sulphate, DAP and complex fertilizers 12. FEDO has worked in association with many international process licensors, has acquired the capacity of customizing and designing projects to the requirements of the customers. 13. FEDO is an approved centre of surveyors and audit for portliness, installation, nondestructive testing energy audits, and ISO audits and so on.

School of Management and Business 60 Studies

Fertilizers And Chemicals Travancore Ltd.

6.2. WEAKNESS
1. Doesnt have a significant market reach outside South India. 2. Procedures followed are cumbersome and often led to delay in decision making. 3. Lack of product line diversification 4. Lack of working capital resources 5. Several unskilled jobs which could be sub contracted are undertaken by permanent employees at high cost. 6. Unwillingness of employee to make important decision. 6. No serious attempt at career planning and succession.

6.3. OPPORTUNITIES
1. Strong marketing network in southern India. 2. Operational efficiency and high capacity utilisation of plants. 3. Scope for expansion and diversification. 4. Utilization of land for generating additional revenue.

6.4. THREATS
1. Non availability of sufficient quantity of phosphoric acid and other inputs. 2. Volatility in the prices of raw materials and feed stock like Naphtha, furnace oil, etc. 3. Fluctuations in prices of Caprolactam.

School of Management and Business 61 Studies

Fertilizers And Chemicals Travancore Ltd.

CHAPTER 7FINDINGS AND SUGGESTIONS

School of Management and Business 62 Studies

Fertilizers And Chemicals Travancore Ltd.

7.1. FINDINGS
The core areas of FACT are the production and marketing of fertilizers and petro chemicals. The authority and responsibility is clearly defined in FACT Strict rules and procedures are followed by FACT for issuing quotations FACT produces high quality products and accepted by world at large. Good canteen, drinking water, medical clinic facility available to employees It gives more importance to the employees safety measures. FACT conducts training programmes for the employees for the purpose of increasing the efficiency.

7.2. SUGGESTIONS
Improving the efficiency and productivity of existing plants. Growth and diversification in core sector (fertilizers and petrochemicals) Re organizing marketing network with special focus to new products, organic fertilizers, bio fertilizers, trading of fertilizers. Effective and productive use of all other assets of the company such as gypsum, land and human resources for growth and diversification. Enter into the joint ventures with global companys inorder to compete globally. Young and talented innovative workers should be given opportunities as there is lack of fresh and young blood in the organisation. Facts product has already captured South Indian market but there is a need to expand operations to North India.

School of Management and Business 63 Studies

Fertilizers And Chemicals Travancore Ltd.

CHAPTER 8 - CONCLUSION

School of Management and Business 64 Studies

Fertilizers And Chemicals Travancore Ltd.

8.1 CONCLUSION
The Fertilizers and Chemicals Travancore Limited (FACT), incorporated in the year 1943 at Udyogamandal, is a Multiproduct, Multi-Divisional Company focused in the manufacture and marketing of Fertilizers, Chemicals and Caprolactam. Currently FACT is running at 23 crore profit. It has been a great experience for us to do the organization study in a reputed organization like FACT as we understood the importance of FACT for the farmers and also for the Indian economy. FACT is transparent in all its activities, adheres to values and malpractices are not encouraged. The study about the Organization FACT was done to understand the various departments, the functional aspects and other areas regarding the functioning and governance. During the course of the Organization Study, we have been able to achieve the same and familiarize ourselves with the functioning and working of an organization. This study has improved my confidence by its successful completion to undertake such studies in the future. Even though our study was limited to Udyogamandal Complex we got opportunities to visit Cochin Division and Willington Island .We were also provided an opportunity to do clerical work in the payroll section of Udyogamandal Division.

School of Management and Business 65 Studies

Fertilizers And Chemicals Travancore Ltd.

CHAPTER 9 -BIBLIOGRAPHY

School of Management and Business 66 Studies

Fertilizers And Chemicals Travancore Ltd.

9.1. BIBLIOGRAPHY
1. FACT 67th Annual Report (2010-2011) 2. FACT diary 3. FACT department manuals 4. FACT news 5. Kotler Philip, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha (2009), Marketing Management, Delhi: Pearson 6. Pestonjee, D.M. Organizational Structures and Job Attitudes. The Minerva Associates Calcutta, 1973. 7. www.fact.co.in

School of Management and Business 67 Studies