ORANIZATION STUDY AT TITAN

1. HISTORY OF ORGANISATION
Titan Industries Limited (TIL) was established in 1984 as a joint venture
between the TATA group and the Tamil Nadu Industrial Development Corporation
(TIDCO).
The company brought a paradigm shift in the Indian Watch Market, offering
quartz technology with international styling, manufactured in a state of the art
factory at Hosur Tamil Nadu.TIL has its corporate office in Bangalore registered
office at Hosur Tami Nadu and regional offices at Delhi, Mumbai, Kolkata &
Bangalore. The company has 4divisions supported by common functions such as
HR, Administration, IT, Finance and KBEM (Knowledge and Business Excellence
Management).
The 4 divisions are

i) Time Products Division:

Manufactures retails and services watches and sunglasses under its own
brands Titan, Sonata, Fastrack, and Xylus and retails two international brands
Hugo Boss and Tommy Hilfiger in India. Watches are sold to distributors in 26
countries across Middle East, SAARC, and South-East Asia. The company has
engaged McKinsey & Co. to advice on the international business strategy and
evolve five year business plan.
There are more around 333 World Of Titan stores and more then 12000 franchises
in India providing retail and service to the customers.

ii) Jewellery Division

Manufactures and retails plain gold and studded jewellery, under the brand
names Tanishq and Gold Plus.
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iii) Precision Engineering Division:
Manufactures and sells precision components &clock and also provides total
automation solutions.

iv) Eyewear Division:

Retails frames, prescription glasses, sun glasses and contact lenses of several
brands.
 In 1987 Titan Industries Limited started with watch assembly.
 By 1989 TIL started manufacturing its own cases for the watches.
 To capture the northern market as well in
 1990 watch assembly unit was established in Dehradun.

 In 1994, Titan entered the European market and watches were made
specially to satisfy the European customers.
 In 1995, the company diversified into jewellery under the brand Tanishq to
capitalize on a fragmented market operating with no brands in urban cities.
 In 1995, Titan also started the production of their own bracelets for watches.

 In 1996, Titan started with its clock production.

 In 2000, Titan launched the world’s slimmest watch. The ultra slim EDGE.
 In 2002, Titan signed a licensing agreement with Tommy Hilfiger watches
for retailing the brand in India.
 By 2002 Titan scaled down its operation in the European markets due to
local market influences.
 Then came Fastrack watches to capture the youth watch fashion with trendy

styles and design just for the youth.

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 In 2004, the expansion of Dehradun unit was done.
  In 2005, Titan entered into sunglass business through Fastrack sunglasses
which is the number one Indian brand for sunglasses.
 In 2008, extension of Fastrack took place in the form of bags, wallets and

belts.
 In 2008, stores were opened in the tier two cities.
 Another milestone of 2008 was the signing of the licensing agreement with
another international brand Hugo Boss.
 By 2009 there were 333 World Of Titan stores in all over India
 2009-2010 is going to see opening of a new assembly in Pantnagar and the
national roll out of watches for the kids.

The Time Products Division holds 25.56% of the company’s annual

revenue. It’s the leading Watch brand in the country and has a share 46.1% in the
Indian watch market. Of the total revenue of Time Products Division domestic
share is 92% and international share counts around 8%.

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2. PROFILE OF PRODUCTS
The Time Products Division manufactures retails and sells watches and
sunglasses under its 4 in-house brands Titan, Sonata, Fastrack, Xylus and two
licensensed international brands Tommy Hilfiger an Hugo Boss.
Depending on the different type of people Titan has broadly divided the end
consumers into 5 segments
1) Low-Mass Segment
2) Mid-Mass Segment
3) Mid & Premium Segment
4) Premium Segment
5) Accessible Luxury
The division’s various brands provide a portfolio of product offerings on the
basis of looks and price points to their respective customer segments.

END
CONSUMER
LOOKS PRICE (RS.) BRANDS
SEGMENT

Low-Mass Dress, Classis, 275-1,475 Sonata

Sport

Mid-Mass Sport, Fashion 595-3,495 Fastrack

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 Dress, Classis, 1,100- 10,000 Titan
Sport
Mid &
Premium Classis, Fashion, 3995-11,995
Tommy Hilfiger
Sport

Dress, Classic
Premium 8,000- 30,000 Titan & Xylus

Classic, Sport, Hugo Boss

10,000- 35,000
Fashion

Accessible Dress 40,000- 3,00,000 Titan ( Nebula

range)
Luxury

The FASTRACK- EYEGEAR, which is the exclusive range of sunglasses is

mainly targeted for the mid-market and is available in classic, fashion and a sporty
look with price ranging from Rs.695- Rs.2495.Titan is serving people with 333
World Of Titan show rooms, 12000 outlets and 600 service centres.

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3. ORGANISATION MISSION
To create wealth for all our stakeholders by building highly successful
businesses based on a customer-centric approach, and to contribute to the
community.

STRATEGIC OBJECTIVES
1) KEY STRATEGIC OBJECTIVES AND GOALS:
The strategic objectives are derived from challenges identified process
ensures that strategic planning process. The planning process ensures that strategic
objectives address all the strategic challenges identified and balances needs of
stakeholders. These objectives are revisited and prioritized as part of annual
business planning exercise BP each year.

2) ADDRESSING STRATEGIC CHALLENGES, ADVANTAGES,

INNOVATION, BALANCING STAKEHOLDERS NEEDS:
The strategic objectives drill down into annual plans with time lines for the
division & BU’s & functions with performance goals & targets. In addition the
objectives also address their internal challenges. The strategic advantages have
enabled the company to look at new business opportunities. For e.g. the FNB BU
adding licensed brands to its portfolio, Titan BU foraying into “Helios”, extending
fastrack brand into accessories like belts, wallets etc. Some examples of strategic
objectives addressing “Opportunities for Innovation” in the areas of product,
service, Operation and business model. The strategy developing process has
undergone several improvements over the years. The current process facilities
integration of work processes and systems in the areas of retailing, supply chain,
HR etc, while aligning to the overall objectives of the division.

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4. POLICIES FOLLOWED
 QUALITY POLICY
Committed to meet excellence in every activity by each employee in the
organization in order to provide products and services, which meet or exceed the
expectations of our customers.
QUALATY IS ACHIVED BY
• Developing employees through education and training and encouraging
them to pursue continuous improvement in quality.
• Incorporating quality while designing our products and services and in the
processes, through which they are produced, thus ensuring performance and
reliability.
• Creating significant customer value in the pursuit of improving the quality
of our products, services or processes.
• Developing relationships with suppliers, driving quality initiatives and
supporting their quality management efforts.
• Training and developing our Business Associates to achieve superior levels
of customer satisfaction and delight in all their interactions with customers.
•Conforming to Quality systems, which enable us to undertake the

responsibilities we have towards the environment and the community.

 ENVIRONMENT POLICY
Titan Industries Limited, a leading manufacturer of Quartz Watches, Clocks,
Precision Engineering Parts and precious Jewellery, is committed to making a net
contribution to the environment by minimizing the impact of its activities, products
and services by specific actions to upgrade the environment.

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TO THIS END:
• Titan will comply with the applicable legal & other Requirements.
• Titan will endeavor to minimize the consumption of material in all its
processes and emphasize on conservation of natural resources such as
energy, fuel and water.
• Titan will strive to continually minimize environmentally harmful emissions
and wastes for prevention of pollution.
• Titan will recycle, reuse viable process wastes.
• Titan will communicate with all persons working for and on behalf of the
organization on the importance of protecting and improving the
environment.
• Titan will emphasise on continual improvement through deployment of
adequate resources to implement its Environmental Policy and actions
• Titan will make the policy available to public interest.

 SAFETY POLICY
All of us at TITAN dedicate ourselves for maintaining Occupational Safety, which
is basically an integral part of all our activities.
SAFETY IS ACHIEVED BY
• Active participation of all persons working in TITAN as well as those
assisting us in our premises with the aim of reducing losses to the
valuable resources of Man, Machine, Materials and tools.
• Adopting safe work practices, ergonomics and striving for better working
conditions.
• Spreading the knowledge of safety needs to our vendors and associates
who serve TITAN from their premises.
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 • Aiming at Zero Accidents without compromising productivity, in the
interest of ourselves and the society at large.

• Adhering to, and surpassing to the extent possible, statutory regulations

on top priority

 ENERGY POLICY
At TITAN are committed to continuously improve our energy performance
in all our activities, products and services so as to make it environmentally
sustainable for the future generations.
TO THIS END TITAN WILL:
• Minimizing and eliminate the power wastage in every segment of operation.
• Monitor and improve energy resources through periodic reviews.
• Use energy efficient alternatives.
• Use non-conventional energy resources wherever feasible.
• Adopt persistent and effective maintenance to ensure quality and reliable
power supply.
• Meet the applicable statutory requirements, setting its own superior
standards.
• Continuously reduce the cost of engineering service by adopting effective
“Energy Management System”.

 HEALTH POLICY
We are committed to uphold safety regulations in every productive activity
to protect ourselves from occupational health hazards. We will consistently strive
to promote preventive health through knowledge sharing amongst ourselves, our
family and in the community we live in. We will promote amongst our employees
and their families the need to be healthy of9 body and mind.
 By adopting the philosophy of “Prevention is better than cure” in personal
and professional lives, we will put forth conscious efforts to achieve the following:

• Healthy Individual : Productive Employee

• Healthy Employee : Organization’s Asset
• Healthy Citizen : Nation’s Pride
The Tata Group also has a written policy on ethics called the Tata Code of
Conduct and Ethics.Counsellors communicate and help implement the Code. Titan
aims to provide the Tata Code of Ethics in booklet form to every employee of the
company and all its vendors and franchisees, who are required to follow the same
standards of conduct including the prohibition against employing child labour.
Titan has 35 counselors available to help with problems that may arise in the
company. Titan also has policy documents on child labour, disaster management,
employing disabled persons, environmental protection, HIV / AIDS and sexual
harassment.

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5. SWOT ANALYSIS OF THE ORGANISATION
During the annual business planning exercise the business units and
functions use templates that address issues such as SWOT while arriving at plans
and initiatives.

STRENGTHS
• Capability to design innovative & contemporary designs.
• Specialty in retailing and service management.
• Countrywide retail and service network.
• Long Term relationship with channel partners.
• Manufacturing and sourcing excellence.
• Integrated manufacturing facility to produce high quality products.
• High brand visibility & recall due to the image of brands.
• Well trained & committed manpower skill.
• Committed, financially sound and respected distributors across
23 countries.
• Well acceptance of products in most countries.
• Reputed and financially strong distributors.
• Respected and strong presence of TATA group.
• Managing product quality.
• Different brands for different people according to need and price.
• High standard for customer service.
• Extensive dealer network. 11
 WEAKNESSES
TITAN WEAKNESS:
• Growing the mid market watch category.
• Carving the new customer segments-kids, young achievers, fashion
seekers.
• Keeping the channel relevant to the changing consumer profile.
• Rapid network expansion.
• Deliver product quality at right cost.
• Rapid design innovation and shorter time to market new products.
• Managing multiple projects and setting up of new stores.
• Managing retail space optimally.
• Managing complex product portfolio.

SONATA WEAKNESSES:
• Entry of low priced Chinese watches.
• Competing with large grey market.
• Lack of brand awareness in rural areas.
• Volume growth in the sub Rs500 segment.
• Significantly expand network to smaller towns and smaller dealers at viable
cost.
• Increasing share in existing key outlets.
• Countering duplicates. 12
 • Building brand strength in rural areas cost effectively.
FASTRACK WEAKNESSES:
• Low awareness for Fastrack brand.
• Lack of desire for sunglasses.

• High dependency on departmental stores

• All brands these days are becoming youthful.

OPPURTUNITIES
DOMESTIC OPPURTUNITIES:
• Economic:
 Smaller town prosperity in tier 2 and tier 3towns.
 Rapidly changing retail landscape.
 1000+ large format stores.

• Consumer:
 Youth is very large and aspirational
 Consumer seeking interactions with brands and showing signs of
increasing national and social consciousness.
 Long term trend of growing affordability and hence driving growth
of higher price product.
 Emerging rural retail formats such as Tata kisan, Vikas centers.
• Retail:
 Malls of India have increased retail space and impulsive buying.
 Growing upper middle class.
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 The licensed brands opening their own retal outlets in India.
  Emerging rural retailing formats.

INTERNATIONAL BUSINESS OPPURTUNITIES:

• Brand building in potential countries.
• Gap in mid market segments due to citizen and Seiko exiting.

• Use of Tata name.

• Emerging new markets: Vietnam and South Africa
• Developing of retail outlets in selected markets.
• Asian markets driving growth in watch markets.
• Titan emerging as an Asian brand and being close to Asian culture.

THREATS
TITAN:
• Cross category threats: mobiles, fashion accessories,
Technology gizmos.
• Citizen, Seiko, Fashion brands, Timex
• Competition is as good on imagery, product satisfaction.
• Spurious / Duplicate Watches
• LFS / Malls. Slowing down of projects.
SONATA:
• Growth of duplicate watches.
• Low Price Maxima and Timex Watches.
• Regional players.
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• Un-organized (grey) Market.
 • Mobile Phones.
• Product opportunities in other categories.
FASTRACK:
• Probability of new licensed brands entering into India through Titan and
going on their own after establishing presence.
• Increasing proliferation of fashion takes & FT fakes.
• Share of wallet (other categories).

• High dependence on a few vendors, inconsistent quality (sunglasses).

• Counterfeits of sunglasses, helmet rule.
INTERNATIONAL BUSSINESS
• Global slowdown.
• Politically instability in certain countries Economic policies and restrictions
in some markets.
• Strong entry and exit barriers

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6. KRA’S –KEY RESULT AREAS
The company starts its KEY RESULT AREAS from the very top. Right up
from MD of the organization to an operator. According to the KRA of MD the
various department heads build up their KRA’s. Based on the department head
KRA’s the managers set their KRA’s. As per the managers KRA’s the operators
set their own KRA’s.
Each and every employee in TITAN watch division has their own KRA’s.
With 2383 number of employees working in Titan the number of KRA’s goes very
high
In general the KRA’s are:
• To ensure adequate FUNDING for the operations of the company,
• To make PAYMENTS in time to all stakeholders.
• To track, analyze and help to bring down COSTS.
• To prepare the annual BUDGET and five year PRESPECTIVE PLAN.
• To provide data at predetermined intervals to our staff at various points
through the MANAGEMENT INFORMATION SYSTEM.
• To ensure that STATUTORY REQUIREMENTS are met in full.
• To assist colleagues at all levels to UPGRADE their soft skills.
• To find new ways to increase PROFITIBILITY.
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• To provide support to all DIVISIONS and SUB’s.
 • To ensure CUSTOMER SATISFACTION.

FUNDING:
 Equity shares.
 Preference shares
 Debentures

 /Bonds
 Term loans
 Short term loans
 Inter Corporate deposits
 Suppliers credit
PAYMENTS:
 Salaries and wages
 Taxes
 Gratuity funds
 Interest and principal repayments
 Advances
 Investments
THE COST:
 Interest
 Taxes
 Exchange fluctuation
 Other financial charges
MANAGEMENT INFORMATION SYSTEM:
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 Product cost
  Profile and cross account
 Cash flow
 Inventory
BUDGETING:
 Creating annual Business plan.
 Creating monthly budgets.
 Updating perspective plan.

STATUTORY REQUEST:
 Tax deduction on salaries and wages
 Tax deduction on payment to contractors
 Tax deduction on rent to land lords.
 Tax deduction on brokerage and commission
 Advance pay of income tax.
 Issue of certificates to tax deduction sources.
 Filling of income tax and wealth tax.
 Publishing quality results.
UPGRADATION:
 Individual initiatives
 Company training programs.

 Job rotation.
IMPROVE PROFITIBILITY:
 Cost reduction
 Working capital reduction 18
SUPPORT TO DIVISIONS AND BUSINESS UNITS:
 SBU wise profitability
 Variance analysis
 Coordinating business plan.
CUSTOMER SATISFACTION:
 Review complains.
 Service level agreements
 Monthly reports from all senior managers.
 Analysis of complaints from customers.

7. PROMOTION OF PRODUCTS
Consumer goods like watches are dependent on advertising for their market
visibility and sale. Titan undertakes advertising in two tiers.
• National
• Local
National and regional advertising involves the use of mix of the press,
outdoor and visual merchandising and television. The Titan’s advertisements with
the signature tune of Mozart’s symphony playing in the background have made a
mark in the nation’s consciousness.
There are various advertisements coming up on television where the
products are being branded by movie stars like Rani Mukherjee and Amir Khan.
Commercial advertisements help in reaching every Indian home through the means
of television. Advertisements given in news papers also help in promotion of
product. 19
 For the local market company advertises through the production and
distribution of points of sale materials like danglers and posters and other things. A
description of each is as follows:
 GLOW SIGNS – All Titan dealers have been provided with glow sign
which increase the visibility of the dealer’s shop in the area. The glow
sign,as a rule should be positioned at right angles to the shop and should be
lit in the evenings.
 DESIGN – The design of the signage is according to the brand it is
advertising.
 SIZE – This as per the space provided by the dealer outlet.
 COST – The cost of signage is borne by the company.

 POSTERS – Posters play an important role in attracting a customer

attention. Titan produces eye-catching posters for this purpose.

 DANGLERS – The danglers should have a festive look so that they are

easily visible.
Local promotions are required to counter-
• Sluggish markets
• Competition
There are some techniques followed foe local markets-
• Usage of points of sale material.
• Usage of outdoor media like hoarding.
• Exhibiting slides in cinema theatres.
• Participating in exhibition and other sales promotion activities.
• Understanding and using visual merchandising.

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8. ORGANISATION DESIGN FACTORS AND
APPROACH
There are various factors that led Tata to set up of Titan Industries Limited
down south in Hosur-
• As the working environment is very peaceful in southern India Tata group
decided to establish TIL in down south.
• TIDCO was also in search of investing into good projects which could help
in development if the state so TIL was an idle project.
• Tamil Nadu government wanted to develop Hosur as an industrial town so
land was provided for TIL in Hosur.
• The state government provided sufficient land for the development of the
infrastructure.
• There were no taxes for the company for ten years.
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 • As HMT watch was already there in Bangalore, Karnataka, therefore Titan
easily got lot of skilled labors who had the skills in watch manufacture.

Thus these all factors led to the establishment of Titan Industries Limited at
Hosur, Tamil Nadu.

9. SYSTEM OF ACCOUNTING FOLLOWED

Titan previously used the SAP ERP application to manage the accounts and
purchase and production planning. The SAP® ERP application had already helped
Titan to integrate its business transactions, improve alignment to the market, and
reduce inventories.
However, Titan now required a planning solution to improve its forecast
accuracy,
product availability and feasible production scheduling. Following an
assessment conducted by external consultants, Titan chose the SAP Advanced
Planning & Optimization (SAP APO) component to handle the complexity of
production, capacity constraints, and a multitier distribution channel.
A 12 member core team had a combination of functional expertise covering
sales, supply chain, manufacturing planning, IT, technical issues, and SAP
software. Implementation partner IBM Business Consulting Services (IBM BCS)
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delegated a four member team to help in the project implementation.
 Purchase accounting is sub divided into three types –
• Regularly required goods – The goods purchased annually for the production
of watches like cases, straps, dials hands etc
• Main stock – It includes the various cutting tools then machinery used at
various levels.
• Capital goods – It includes of computers, furniture and other office goods.

During the purchase the accounts department follows the following steps –
• When the accounts department is acknowledged about the purchase of any
material information in fed into the SAP application and it produces a GRIR
i.e. goods received inspected report.

• Then Debit Inventory is done and Credit liability account payable to vendor.
• Vendor submit bill to accounts department for releasing payment.
• Accounts department will see purchase order status and it will confirm from
GRIR receipt. It will then confirm from source and credit vendor account.
• Next step vendor account is debited and bank account is credited.

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10. SYSTEM OF PURCHASE FOLLOWED
Purchase function is respective for procurement of raw materials,
components, tools, consumables machine spares, and packaging and miscellaneous
items as per Titan’s quality standard to meet watch production requirements.
The component requirement received from supply chain shall be procured
from approved vendors. The purchase order are processed and approved through
work flow system to ensure error free execution. The vendors are evaluated
periodically and reassured on he basis of past performance/potential capability to
meet the primary objectives of quality, cost and timely delivery. Vendor rating and
carried out every quarterly. All documents related to purchase documents are
available at the relevant places in such a way that the documents are easily
accessible to the persons concerned.
The purchase department consists of
• Head Of the Department
• Group Head
• Section Head
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• Executives
 Purchase is carried out in two ways:
DIRECT MATERIAL – Examine current years requirement based on global
operation plan and discussion with central planning.
INDIRECT MATERIAL – Estimate requirements based on past assumption and
expected variance in consumption line with estimated variation in production.
After this SNP is validated and supply is followed up.
The following figure shows the material planning for the purchase of materials.

MATERIAL PLANNING

25
 Indent from supply
chain

In house manufacture Purchase

( Module Plant )

( Case Plant )

Quality Control

Formation of Matched sets

by central planning

Watch Assembly

Domestic Market Export

Material planning is the first step in purchase procedure. Materials are

arranged in two ways- in house and by purchasing from vendors. And accordingly
materials are purchased.
VENDOR SELECTION:
Samples are tested from the various vendors and if they are approved the
particular vendor’s products are bought by placing purchase orders.

VENDOR EVALUATION: 26
Vendor evaluation is done on the following basis:
• Quality
• Timely Delivery
• Self Certification for quality
• Quality Factor
Based on these the vendors are evaluated and are given purchase orders.
PURCHASE ORDER:
It consists of the following things
• Vendor date
• Vendor code and address
• Purchase order number and date
• Material stock number.
• Material Description
• Order Quantity for material
• Unit price of material and net value.
• Currency
• Total order Quality
• Inspection Detail
• Delivery Place
• Delivery Schedule
• Payment terms
• Terms and conditions
MONITORING AND MEASUREMENT:
It’s done on the basis of the following points
• On time deliver
• Quality of the product

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 • Cost reduction
• Inventory Control
• Resource Conservation

11. SIGNIFICANT FACTORS OF SUCCESS

• Good working environment.
• Infrastructure of the company is ideal for the employees working there, it
facilitates and increases the efficiency of the production and
manufacture.
• Employees are very dedicated and committed towards their profession.
• Retailing of goods is done in a large scale with 333 World OF Titan stores,
12000 outlets across the country and around the globe in 30 countries.
• It has 600 service centers proving service to the customers.
• Titan in not only the market leader in watch section in Indian but has also
made its place in the world watch market and is the 5th largest watch largest
watch manufacturing company in the world.
• Every single work is well organized.
• Quality is their first priority.
• Customer relationship is always given importance.
• Customer satisfaction is always one of their key goals.

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12. HRD MEASURES
The key HRA plans are based on short and long term strategic objectives of
the company/division, action plans of Bus and support functions.

Long term
Employee buiz goals TBEM
feedback inputs

SMT
feedback Past HR
Performance

HR Strategy
BU plan
expectations
Great Place to
work

Tell me
survey
Gallup
Expert’s HR internal Survey
opinion discussions

The figure shows the key factors considered while arriving at HR strategy
plan. In preparation of these plans due consideration is given to impact of
people/staffing across the company the need for addressing key people challenges
as well as key strategic interventions over the ensuing 3 year period. As a strategic
initiative, it has engaged the services of E & Y to propose a LT structure for the
business. Further the information of Integrated Retail Service group will be
focusing on imparting retail training to frontline staff recruited by the various
businesses, as they expand in different markets.

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 This centre will also help to enhance retailing skills of the existing field
force. Based o the 3 year plan, talent pool management has been identified as one
of the critical requirements of the business in the coming years. A detailed process
to identify leadership talent has been put in place.
The Tata Business Excellence Model (TBEM), a derivative of the American
Malcolm Baldridge quality model, was introduced by Ratan Tata after he assumed
responsibility for the Tata Group in 1991.8 The objective of TBEM is to ensure
that the Tata Group companies achieve defined levels of total organizational
excellence, delivering ever-improving value to customers, contributing to
marketplace success, improving overall organizational effectiveness and
capabilities, and nurturing organizational and personal learning, with CSR treated
as a priority
Tata’s history, TBEM, the Tata Code of Conduct, benchmarking by TQMS
and guidance and support of TCCI all contribute to creating a corporate culture
within the Tata Group in which human rights-related CSR is treated seriously and
professionally, and integrated into business decision-making. Titan is able to draw
on the expertise and experience of the Tata Group in designing and successfully
implementing human rights-related CSR initiatives.
WELFARE:
Workforce Support via Policies, Services, and Benefits. Company provides several
benefits to employees on the basis of levels and locations. Company also goes
beyond statutory requirement to provide benefits to the individual who are not on
the rolls of the company. The benefits include subsidized food, extension of
medical facilities, etc. The Titan Township has full-fledged amenities including a
school. They have culture events like celebrations of birthdays and festivals,
sports, visiting families of employees, factory visits by employee family, 10/ 15 yrs
service award functions, etc. Some of the welfare benefits like Sunday allowance;

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risk allowance, marriage loan, emergency advantage etc. are the best in the
industries in the region. Based on inputs from various internal customers, existing
travel rules have been modified to cover all aspects and keep them current. In
addition, to leverage the contacts of employees, an Employee Referral Policy with
Referral Bonus to every selected candidate has been introduced. Periodic
assessment of existing policies is conducted, based on employee feedback and
comparison with other organization to balance both employee and organizational
requirements.

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13. MANPOWER PLANNING
To keep the business aligned and integrated, the division identifies necessary
skills and characteristics required by potential employees through inputs provided
during planning exercise. E.g.: Retail Merchandising, Brand Managers, SAP
Technical Support etc. For accessing the workforce capacity needs, HR along with
business heads assess the knowledge, skills and competency plan to meet the
Divisional/ BU’s annual operating and strategic plans.
The company staffing plans are based on business plan requirements. In
manufacturing, to meet the production alignment as per market requirements,
temporary staffs are engaged for carrying out low value adding activities. Like in
any business with seasonal surges in demand during festival season/scheme
periods, support from factory personnel are taken to fill in temporary needs. At the
back-end manufacturing enhanced productivity levels due to process automation,
outsourcing, multiskilling etc, have led to surplus manpower being redeployed to
other and have also enabled in giving growth opportunities to move to L level. For
company owned stores, the no. of people to be employed is based on Retail growth
plans and whenever there is attrition.
The company has a structured program in recruiting fresh talent from
reputed engineering and management institutes every year. Investments in
developing these young professionals= by providing sufficient and necessary
induction, after which challenging assessments are given. The existing CR-FR
talent pool is revisited periodically to strengthen the existing talent base, through a
comprehensive exercise. The process follows the performance and potential
assessment of short listed managers. In all 217 Employee went through an AC in
two phases. AS a result of evaluation and subsequent discussions at TMC, 64
managers have been identified as CR and 135 as FR.

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14. CAREER PLANNING & PROMOTIONS
A well defined career plan for CR has been worked out, to ensure grooming
to leadership position, which has been done after detailed Personal Planning
Management with Titan Management Council. Similarly detailed PPM discussions
for FR were done to focus on their growth & development plans. For TM at SMT
level, PPM participate at Group HR, identifies potential to take on higher and
complex positions within the TATA group. Hence through a combination of
Titan’s PMS, TM and group PPM, the company ensures a strong pool of leaders
for taking leadership positions for future and enables identifying successors for
critical and leadership positions.
Annual performances of the employees are analyzed. Based on the annual
performance operators are given promotion every 4 years. The performance is
analyzed by managers. Managers and in tern judged by their department heads and
given promotion once minimum in three years.

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15. TRAINING MEASURES
The key focus areas are product knowledge, customer handling,
Communication and grooming skills, soliciting information from customers and
grievance handling. Standard technical training on products, problem solving,
environment safety etc., are imparted to all service staff and mechanics of the
company and to ASC’s. The division has instituted a FOT contest wherein the
CRO, Store managers, cashiers, service technician and Service receptionists of
both Company and Franchisee stores are trained and evaluated on product
knowledge, selling and customer handling. In factory, all employees, incl indirect
are trained on safety, EMS, Security Systems, on the job skills and various
behavioral training programs. Employee workplace environment and safety: Needs
arising out of workplace and safety are addressed through ISO 14001. Some
examples of training programs on environment & safety, performance
improvement, leadership development & innovation are depicted. Metrics such as
training man-days, costs, multiskilling and effectiveness are tracked. To have an
effective audit system in place, ISO 9000 and EMS 14000 have been merged as
IMS (Integrated Management System). The content and delivery mechanisms for
training are based on the inputs received from managers, employees, training
personnel and are tailor made to cater to the needs of the workforce. The process of
knowledge Transfer from resigning/retiring employees happens through exit
interview, document handover, handling over note, etc. To foster knowledge gain,
periodic knowledge sharing sessions are held apart from knowledge portals. The
post training follow through ensures application of knowledge and skills acquired
in personal/work areas. Learning effectiveness is captured from E level (OPAP)
and from L level (PAP).

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35
 Adherence to Learning
Calendar

Process Measures
Flow
Organization, long term strategy Business
plan, functional Business Plan, PMS,
Training Needs TAC Assessment Centre 360 degree
Identification feedback

Analysis & validate

Individual
Organizational Departmental
ST/LT training plan

Ad-hoc & Learning Calendar (in

house / external programs)
Training program
design Develop Program objective Content Training Man days
& Coverage Needs identified

Inputs from HOD, Identification of trainer

Employees,
Participants,
Trainers, & Freeze the program
Subject coverage
Assessment Centre methodology,
communication,
level of interaction

OJT OFT

No of personal
action plans, Effect
Program Delivery of implementation
36

Mid course correction

Knowledge
Process sharing Training program Personal action plan
PERFORMANCE APPRAISAL SYSTEM
The Company follows several formal and informal recognition systems
including promotions & cash awards for individuals & teams. Several new
recognition mechanisms have been introduced on the basis of feedback received
from the employees through surveys & open houses. While the FOT program
covers WOT employees, Star CRO, Star Promoters, Learning Champions etc are
other formal mechanisms used to recognizes frontline employees, including
Agency/ Franchisee employees. People first, a Company-wide program designed to
foster and sustain the spirit of competitive camaraderie, was implemented in 2008.
The program covers areas such as people development, employee engagement,
culture building, employees well being and reward & recognition. Heart to Heart
Appreciation Program is a simple way to acknowledgement, applaud or appreciate
fellow employees, where a written personal note can be handed over to their
colleagues (boss, superior, peer, subordinate).

Reward Employee Category Basis

Moment of frame All L level & initiated for
Celebrate small successes
level (I,T)
Outstanding Titanian / All L level Outstanding Contribution
Dream team - Quarterly (I) (T)
Awards at BAM - Annual All L level Sales Achievement by SO
(I)
Long Service Award - All L level & E level 10 year and 15 year
Annual Competition
Face of Titan - Annual Front facing Titan, and Outstanding CRO (I),
franchisee employees service receptionist and
store manager
Idea + Recognition All L level & E level Suggestions given &
implemented (I)
BE Rewards, annual plan L level Involvement in business
achievement excellence initiatives
Communication through All E, L, Agency and Informal recognition
news box, notice board Franchisee employees mechanism
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Keep it up E level For productivity (I)
Internal Trainers For E and L level trainersFor sharing their
knowledge
Titan activation program All employees Sales promotion
Cll work skill competition For all E level employees To enhance their skills
Through Quality, Safety For all employees at Mfg., Employees participation
and Sports committees and mutation to exhibit
their potential

I – Individual
T- Team

16. FUTURE PLANS FOR THE GROWTH OF THE

ORGANISATION 38
 Titan’s future growth plans are comprised of increasing market shares
through geographical diversification as well as improving sales through change in
product mix. Going forward the company plans to enter five new global markets in
a year. At present Tanishq is exported only to a handful of countries, namely the
Middle East and Singapore. The company plans to target both the NRIs and the
American consumers for its jewellery business and hence is testing the market in
the US for the same. In the domestic market it has plans to expand its portfolio of
licensed brands & Accessories. Since the manufacturing of these items would be
entirely outsourced, there would be no significant risk in this venture, while it
could boost profitability if successful. In watches business, the company intends to
focus on rural and semi-urban markets to tap first-time watch users.

FUNCTIONS OF MANAGERS:
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In all there are 217 managers working in Titan Industries Limited. Out of which I
met five managers.
1) Finance Manager – Mr. S.P.U.Ganesh Subramanian
2) New Product Development Manager – Mr. T.Jayakumar
3) Planning- Case Division- Mr.V.M.Manohar
4) Quality Functions- Case Division- Mr.K.Shanmugam
5) Case Assembly – Mr.V.Manimaran

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17. ADVANTAGE OF THE ORGANISATION
STRUCTURE
• TITAN is the 5th largest watch manufacturing company in the world and
credit goes to the management and the employees.
• Every employee in Titan from MD to an operator has individual KRA’s
which is one of the key factors to success.
• Every single work is well planned.
• Quality tests are carried out at every step of watch manufacture.
• Behavior of the employees is very friendly and follow professional ethics.
• Infrastructure is very good with good working environment.

DISADVANTAGE:
When a company is so large it has to be flawless. Things are so well
organized and every small work is done with so much commitment that there are
no disadvantages.

18. RECOMMENDATIONS TO OVERCOME

DRAWBACKS:
As I dint find any draw backs I don’t think any recommendations are
required. Each and every process is done in a systematic manner.

19. SCOPE FOR MBA IN ORGANISATION:

There is lot scope for MBA’s in Titan as Titan has HR, IT, Finance,
Marketing and operations departments. So one can get placed in any one of the

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departments. As the working atmosphere at Titan is ideal for MBA’s.

20. TRADE UNION ACTIVITES IN

ORGANISATION
All the union activities are carried out within the organization only. There is
no interaction with external trade unions. There is union within the organization
which consists of basically the operators. The union negotiates with management
when they have a demand to be fulfilled.

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21. CONCLUSION:
Doing this Organization Study in Titan was one of its kinds. The experience
was very good. The way each employee is dedicated towards his /her work is
worth seeing. Everything is synchronized and organized. Quality is their first
preference. A very friendly working atmosphere where every work is done very
professionally. The factory infrastructure is well build and well maintained. The
watch manufacturing leader in India understanding and satisfying the needs of
millions of people.

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