McDowell and co ltd

EXECUTIVE SUMMARY
Industrialization plays an important role in the economic development of a country. The gap in percapita income between the developed and a developing country like India is a serious concern. This is mainly due to the disparity in the structure of their economies. The former are large industrial economies while the latter are mainly agriculture-based economies. The distillery of McDowell & o !td is situated in herthala" #lappuzha District" $erala. It can be grouped under a large-scale industry as the capital investment covers over crores of rupees and the number of labourers employed is also more. It can be grouped as a secondary industry because it produces goods" which are used for consumption. The industrial revolution paved the way for the development of machinery" use of mechanical energy and establishment of factories employing large number of people. %ersonnel management is that part of management which is concerned with people at work and their relationship within an enterprise. Its aim is to bring together and develop into an effective organization the men and women who make up an enterprise and having regard for the well being of the individual and of working groups" to enable them to make their best contribution to its success. #n &incentive or reward' may be anything" which attracts a worker(s attention and stimulates him to work. #n incentive scheme is a plan or program to motivate individual or group performance. #n incentive plan may consist of both monetary and non-monetary elements. It can play an important part in improving an employee(s efficiency.

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McDowell and co ltd

The research study on &,ffectiveness of the incentive schemes introduced in McDowell & o !td' was undertaken in the company(s distillery at herthala" #lappuzha district in $erala" to study the impact of the incentives provided and its effect on the functioning and productivity of the company. The strength of the labour force of the company is +-.. Incentives are paid only to the workers and not to the managerial cadre. The bottlery employees and the general /staff category en0oy different percentages of the incentive payments. The study was conducted by collecting data using 1uestionnaires. 2uestionnaires were distributed to workers to collect the relevant information. It contained both open ended and close ended 1uestions. The 1uestions were designed to gather all relevant information regarding the effectiveness of the incentives in the areas of production" industrial relations" motivation of the employees etc. The sample size was restricted to 34 for bottlery and 54 for general /staff category. The study revealed that the incentive scheme increases productivity and creates inspiration in workers to contribute more towards the bottom line. The study has helped the company to analyze the effectiveness of its incentive schemes.

5 M) Institute of Technology" *angalore

McDowell and co ltd

1.1 INDUSTRY PROFILE

ALCOHOLIC BEVERAGE INDUSTRY
The Indian alcoholic beverage industry is classified into beer" wine" country li1uor6 Indian made foreign li1uor and the imported spirits segments. 7nder the constitution of India" the beverage alcohol industry is a state sub0ect. The industry is highly regulated by the union and the state governments. 8hile licensing 9reenfield units or sanctioning capacities for production of alcohol is the central government(s domain" the authority to impose ta:es" regulate distribution" storage and marketing lies with the state(s ;<= of the industry is directly controlled by the state governments. 8ith 5> states and union territories framing their own regulations and ta: policies" which often change dramatically from year to year" the industry is often at a loss in planning for growth and investment. In the recent times the beverage alcohol industry has been characterized by continuous down trading by consumers in the face of ine:orably raising prices" driven by ever increasing levels of ta:. This industry(s profitability is highly dependent on government regulations. hanging cultural attitudes towards consumption of beverage alcohol combined with tangible increase in per capita disposable income and most importantly willingness of young consumer to spend" all point to the healthy growth prospects for the industry. The industry has also to cope with a ban on advertising thus depriving it one of the most potent form of communication and brand building.

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McDowell and co ltd

IMFL (Indian Made Foreign Liquor)

The IM?! industry in India is growing at about +3= per annum. Imported brands account for about +.<= of the total consumption. onsumption is predominately towards whisky" which accounts for nearly ;4= of the market. @igh Aend consumer price" due to high ta:ation has caused downward shift towards cheaper products in many categories. !ow per capita consumption" the high volume in the unorganized segment of the spirits business with likely transition into the organized sector" the changing consumer perception of the alcohol and the progressive regulatory changes are the key drivers to the growth of the IM?! industry. The irrigational policies adopted by the various governments towards the IM?! industry have been a growth in the cheaper brands to the detriment of consumers. The production and distribution of alcohol can be done only if they got the license for it from the state government. In $erala" currently the distribution of the IM?! is carried out only by the $B* C$erala Btate *everages orporationD" which is a state controlled body.

DISTILLERY INDUSTRY
In a distillery" the basic function is distillation and it is carried out with the help of highly sophisticated distillation plant filled with automation e1uipment to produce high 1uality alcohol" which is an integral part of the product. Molasses" which is waste product of sugar industry" is being used for producing alcohol after fermentation. ontinuous fermentation techni1ues are used in distillery for ma:imum efficiency in producing alcohol. ,very one C+D ton of molasses yields around 5<4 liters of alcohol. ?rom this" it is given that only about ;4= of the molasses is used for the production of alcohol and remaining 34= of the molasses is considered as waste product or put to unproductive uses.

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McDowell and co ltd

1.2 COMP NY PROFILE

INTRODUCTION TO !T"E U# $ROUP%

The 7* 9roup is an )s..444 group and largest Indian business house in the country. This is one of the fastest growing industrial houses with over 344 companies worldwide and the business interests spinning the entire globe. The group is the second largest spirits marketer in the world after Diageo. 7* is the undisputed market leader around <;= market shares in India" both in the breweries as well as in the distilling segments. McDowell & o" the flagship of 7* group is the largest spirit company in India mentions the turnover of McD and how much it contributes to the group. This group started as a single business and has transformed to operate a portfolio of activities in a span of < decades under the charismatic leadership of late Mr.Eittal Mallya. The present hairman" Mr. Ei0ay Mallya" has infused it with further dynamism. In a rare achievement for an Indian corporate" the 7* spirits division has fourth largest after ac1uiring Bhaw 8allace they are second distilled spirit marketers in the world. The 7* group(s spirits division has earned a second global distinction by being ranked world number four in the terms of the largest number of millionaire brands. The high standards that 7* sets for itself found recognition in the form of the best company award from the *angalore Btock ,:change. 7* group spirit division has got .< distilleries in India. Its registered office and corporate office is at *angalore in India. 8ith the %ondicherry unit being recommended for the IBF >44+ A 5444 certification" all units are now IBF certified. *esides distilleries and breweries" 7* shows its smart e:istence in other enterprises like chemicals and fertilizers" pharmaceuticals" resorts" hotels" electronic instruments" batteries etc. )ecently air services also added to the business i.e. $IG9?IB@,) #I)!IG,B.

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McDowell and co ltd The group(s main focus and plan for future is to strengthen their position in the areas of e:isting profitable operation and move towards consolidation of their competencies in the emerging markets" thereby establishing as a service full industrial company in #sia %acific region

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McDowell and co ltd

MCDO&ELL ' Co.%( "ISTORY

McDowell & o was incorporated in the year +H>H on Beptember +< and ac1uisitioned to the 7nited *reweries in the year +><<. McDowell(s consolidated its position as the Go.+ ompany in the highly competitive Indian spirits industry. McDowell is very much older than the distillery. Infact the company dates back to +H5;" when Michael McDowell in Madras founded it. It began as a trading company" importing wines and spirits from the most famous ,uropean li1uor houses of that time. !ater in +>3- it was taken over by *athgale & o" of alcutta. In +><+" McDowell became a prime ac1uisition of the 7nited *reweries 9roup. 7nder the able guidance of the founder of 7* 9roup" !ate Mr. Eittal Mallya the company became the first to manufacture Indian substitute to foreign li1uor. # new term IM?! CIndian Made ?oreign !i1uorD was coined. Bince then" McDowell has been indisputable market leader as one of the largest fast moving consumer goods companies in the country.

In the year+>-4(s McDowell &

o !td" e:tended its operation world wide" under Eittal Mallya(s

chairmanship. Gew units were set up and several manufacturing and marketing units were taken over. The unit at @yderabad began in +>-+" goa in +>-." @athidah in +>-<. 7nited *reweries !td became the holding company of the entire group and the group itself led the Indian !i1uor business. They have representation in almost all means of li1uor industries. In the mid -4(s" it seemed that an official prohibition drive would send the li1uor business in to tailspin. *ut convinced that the set back would not last" Eittal Mallya moved into strengthening the groups even further units in 7dayapur" #lwar" Mirgangi & Trichur were ac1uired. The leadership is a legacy" which has been most remarkably reinvented and multiplied by his son" the current hairman of 7nited *reweries 9roup. M) Institute of Technology" *angalore

McDowell and co ltd Boon after his father(s death Ei0ay Mallya set the ground lines for the groups immediate future. Its leadership in li1uor" processed foods and plastics is being consolidated. #nd the fact that he is one of the youngest chairman finds e:pression in the group(s entry into the new e:citing high technology business" pharmaceuticals" medical" electronics" etc and several collaborations are on the anvil. McDowell is the flagship company of the 7* group spirits business6 the company controlled most of the total of market in the Indian spirits industry. The spirits division sold million cases in each year and the company sold millions of cases through the ac1uisition of Triumph Distilleries & Eintners %vt !td" which manufactures and sells the popular 9ilbey(s range of IM?! in India and @erbertsons !td. McDowell has featured for the fifth consecutive year in the advertising and marketing magazine as one of the most admired marketing companies. ?our out of five brands are among top hundred selling brands in the world. The company has crossed the milestone of bottling .< million cases in 544. A 5443. These milestones have been made possible by continual investments by the company" on the one hand in brand development and on the other in enhanced manufacturing facilities. 8hile the brand imagery has created level of e:pectations for products on the house of McDowell" it has been the companies constant endeavor to ensure the products of high 1uality are delivered consistently from the most efficient manufacturing source to the consumer. McDowell now manufactures its product from nearly forty distilleries spread across the country in which twelve are owned distilleries all of which are IBF >445 certified. The group units are IBF certified and the company is in the process of insuring 1uality and process certification for contract bottling units as well. The company(s investments are being made both in the manufacturing capacity and companies environment in which it operates through safe discharge of effluents. )ecently company invests more for manufacturing and effluent treatment facility McDowell is professionally managed multinational company with thousands of employees working in the production and marketing center. McDowell has scored high on parameters such as keeping close contact with market and leadership through innovative product launches and company has been leading efforts to protect its consumers.

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McDowell and co ltd The *oard of directors headed by Dr Ei0ay Mallya manages the McDowell & o. The company has its registered and corporate office at <+" )I @MFGD )F#D *#G9#!F),. The ompany has its production units in various states such asI $erala #ndhrapradesh 9oa *ihar $arnataka 7ttarpradesh )a0asthan 8estbengal Madhyapradesh Maharashtra %ondicherry 8estbengal herthala @yderabad 9oa @athidah $umbalgodu )osa 7daipur Berampore *hopal Gasik %ondicherry #snol

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McDowell and co ltd

"ISTORY OF MCDO&ELL ' Co. IN C"ERT" L

herthala" a town touching the #rabian Bea $ochi and 5. km north from the Eenice of east. It was isolated hamlet of Earanad" situated on the backwaters of the Eembanad running through #lappuzha District of $erala that the !ate Mr. Eittal mallya ventured in the li1uor manufacturing business. In +><H" the 7* 9roup ac1uired the land for the company and in +><> ?ebruary the foundation stone was laid down by the then )evenue Minister Mrs. 9auriamma. In January +>;+" the factory was inaugurated by the ministers of $erala in the presence of Eittal Mallya" the former chairman. The license of spirit division was accorder in the year +><>. The herthala distillery" switched

entirely to manufacturing when its first unit was commissioned in +><>" and went in to production of Indian Made ?oreign !i1uor a year later. The first processing was bottlery of IM?! like 8hisky" brandy and dorville brandy. 9rape processing and malt distillation started in +>;3. #n e:clusive portfolio of li1uor brands has since followed from this distillery" which continued to be loyal following today. McDowell herthala was the first to start its ,G# C,:tra Geutral #lcoholD plant in India. It was also the first to distill grape spirit from fresh grapes. *eing the first manufacturing unit of McDowell" all the new products and brands were originally launched from herthala. Gow the unit is capable of producing 55444 liters of ,:tra Geutral #lcohol and -444 cases per day. In +>>;the first product was launched that is McDowell brandy. It is a blend of ?rench and Indian grapes and spirit. In +>;>" the herthala gave Indian whisky" Diplomat. Then in +>-." McDowell(s noI + whisky arrived. It set the trend for whisky blends" including *agpiper" which almost instantly became the largest seller in its price category and national leaders in each basement like largest selling brandy" light bodied whisky" semi-premium whisky. McDowell premium whisky - the pride of herthala" was introduced in +>-> and the )#), F!D

#B$ )7M in +>H+. These" today have a place of pride among Indian whiskies and rums" and compared most favorably with the best-known brands worldwide. Their introduction was followed in the year +>H. with the launch of Diplomat 8hisky re-blended and re-packed. In +>H- Bcotch +4 M) Institute of Technology" *angalore

McDowell and co ltd whisky named Eintage was bottled. During the period of +>>4-+>>5 elebration and aribbean )um were introduced. The herthala unit was the first in the country to produce perfumery grade alcohol. #t that time it supplied the spirit to !akme" %raline %aris" osme Mathais and Bhahib Bingh for manufacturing of toilet preparation. The herthala unit has a positive influence on the local village by improving the infrastructure and lifestyle of the people around the factory. #ll employees in this unit are among the best-paid employee in the entire districts. McDowell herthala is one of the pioneering distillery units in India and the unit has bagged many laurels in its history of 3< years. It is no wonder keeping pace with the times is one of the main reasons for the success of the group.

#oard o) Dire*+or( o) +,e Co-.an/

The *oard directors comprises a Directors. 1. Dr Vijay Mallya C air!a" #. Mr. S.R.G$%&a ' Vi()'C air!a" *. Mr.V.+.R), i Ma"a-i"- Dir)(&.r /. Mr.D.rai01a!y Iy)"-ar Dir)(&.r 2. Mr.P.+.+a,.3,ar Dir)(&.r 4. Mr.Brij M. a" La5r.. Dir)(&.r hairman" Eice- hairman a Managing Director and other three

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McDowell and co ltd

0 RIOUS DEP RTMENTS% FUNCTIONIN$ T M*Do1e22 ' Co .

Mc Dowell &

o. !td comprises of various departments. ,ach has its own functions and is

controlled by an efficient and 1ualified management. The various departments are I

%,)BFGG,! & #DMIGIBT)#TIFG D,%#)TM,GT ?IG#G I#! &# F7GTB D,%#)TM,GT

%)FD7 TIFG D,%#)TM,GT BTF),B & %7) @#B, D,%#)TM,GT FMM,) I#! D,%#)TM,GT 27#!ITK FGT)F! D,%#)TM,GT PERSONNEL ' DMINISTR TION DEP RTMENT
This is the most comple: one among all the departments. %ersonnel department carries out all the functions such as recruitment" training and discussion for welfare activities of the employees. The personnel department is headed by ,:ecutive %ersonnel& #dministration. The department deals with the important decisions and policy making functions such as salary administration" appointment" promotion and demotion" and maintaining good industrial relation between employees and employers. #s far as industrial relation is concerned trade unions e:ist and the company enters in to long-term agreement with the representatives. There is no fresh recruitment in this company. )ecruitment of workers is through the E)B of e:isting employees" so outsiders are not worked permanently but lot of contract workers are worked daily. Training is given to new employees. It is given for a period of one year. #fter the training programme the employees are able for achieving the organizational goals.

+5 M) Institute of Technology" *angalore

McDowell and co ltd !abour welfare activities are indispensable for the running of an industry. #de1uate welfare creates commitment and the employees will care for their 0ob more if they feel that they are cared properly. The company is keen to the welfare of its employees. ?ull fledged canteen facilities and opportunities for recreation activities are present. The company has contributed substantially for the smooth functioning of ,mployee(s ooperative Bociety and 8elfare ?und. The company provided various allowances to its employee. The remuneration provided to the employees are on the basis of time rate system. The attendance of the company must be kept in muster roll and the personnel officer must check the muster roll.

FIN NCI L DEP RTMENT

?inance is the lifeblood of the business6 hence finance department is a very vital part of the firm. The department deals with all the financial and accounting aspects of company affairs. The function of this department is recording" classifying & summarizing in a specified manner and in terms of money transaction and events" which are the part of financial character. ?inancial manager heads the department. The company has to send a weekly report to the head office on how much money is received and how much money has been used. The financial manager controls this process of report preparation and sends it to head office. #ccording to this report the head office sends the re1uired fund to the company. The company is able to ad0ust with available funds. **oun+( -anua2 The accounts of the company has maintained from its inspection under the sound system of double entry bookkeeping. The company followed the computerized accounting system. #ll the duties of the firm should be entered in to the computer. ,veryday the company collected the financial data from each department for smooth functioning of the financial department and each department of the company.

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McDowell and co ltd

PRODUCTION DEP RTMENT

This is divided in to two separate departments namely distillation plant and the IM?! bottler. # manager heads this distillation plant. @ere water treatment pump house boiler termination takes place. 54444 liters of ,G# is produced on a daily basis" which is hardly sufficient for IM?! production. This plant is fully controlled by instrumentation and computers. In the IM?! bottlery" the bottling of li1uor takes place. It is a large hall with bottles running through different stages starting from washing to the final packing in to cartons. ?inished goods are stored in e:cise bonded warehouses from where dispatch takes place after the completion of the e:cise formalities. Produ*+ion .ro*e(( Fer-en+a+ion The main raw material used in the distillation plant is molasses. Molasses is a dark syrup li1uid" which is a waste from sugar industry in which contains 34 to 3<= sugar. The molasses received is first stored in storage tanks for a definite period of time. This is then fermented after adding a measured 1uantity of yeast in fermentation tanks. The wash obtained is then pumped into an overhead tank. This wash is then distilled in distillation columns to e:tract ,G#" which is base for different varieties of IM?!. Di(+i22a+ion The fermented material is pumped to distillation unit. In steaming" impurities are removed and alcohol is distilled. herthala unit" multi pressure distillation

system is used for distillation. It was the first fully instrumented distillation plant in India. *y

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McDowell and co ltd

Ma+ura+ion The malt spirit is unfit for blending as the spirit is raw. To remove rawness the spirit is matured in wooden barrels or vats. During maturation o:ygen penetrates through wood and o:idizes the impurities. #t the same time some favour components are e:tracted from the wood. Fak wood is used for making cask and Bal wood for vats. #2ending *lending is the mi:ing of spirit s in different strengths. The ingredients are ,G#" the high bou1uet spirit" caramel" food flavour and demineralized water. #fter mi:ing these ingredients in the perfect strength" the li1uor is then filtered through sparkler filters and kept ready for bottling. Fnce the blend is ready a sample is drawn for chemical e:amination by the e:cise authorities and allowed to bottle only after getting the sanction from the government chemical e:aminer. #o++2ing *ottling involves6 8ashing ?illing apping Bealing !abeling %acking

The bottles are washed in machines" and are checked for cleanliness and for alkalinity at random by the line chemist. The washed bottles move on a conveyor of the filling points where the bottles are filled by machines in the ade1uate 1uantity. The filed bottles are capped on line and then sealed with the sealing machines. It is labeled with the aid of labeling machine and finally packed in carton. The

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McDowell and co ltd packed cartons are stored in wooden pallets and moved to the warehouse" where it is under the 0oint custody of the company and e:cise department of government of kerala.

M INTEN NCE DEP RTMENT

Manager heads the department. This department has an electrical and mechanical workshop maintaining all the electrical e1uipments of the factory. This department has a team of trained and e:perienced technical personnel to handle the overall maintenance of machines" boilers" pumps and generators.

STORES ND PURC" SE DEP RTMENT

Btores department is concerned with the storing of raw materials" stores engineering goods" and stores finished goods. The finished goods are stored in the warehouse. There are two stores functioning in the company and both of these are fully computerized. They are )#8M#T,)I#! BTF),

,G9IG,,)IG9 BTF), The purpose of store keeping is" smooth flow of incoming material to the concerned department at the correct time and in sufficient 1uantity. %roper recording of inventory received and supplied are maintained with the help of computer. This enables the storekeeper to procure the store at current time" so that the working of the plant and machinery is never hampered for the want of raw materials and spare parts. 9enerally +< days stocks are always stored in the anticipation of any future shortage. &are,ou(ing The finished goods are stored in the warehouse of the company under the direct supervision of the e:cise department of the government of $erala.

+; M) Institute of Technology" *angalore

McDowell and co ltd The warehouse situated in the company can accommodate H4"444 to +"44"444 cartons of finished products. The warehouse is capable of handling goods for the dispatch to various destinations. !ift trucks are used for easy handling and transportation of goods to and from warehouse" this helps reduce human effort to a great e:tent. Pur*,a(e de.ar+-en+ The purchase manager organises and manages all the activities relating to the purchase of goods to be sold by the sales department is called upon to purchase the right type of goods at right time from right suppliers at the right place.

COMMERCI L DEP RTMENT

This department is concerned with dispatching the goods according to orders and making available various permits taken from the e:cise authorities posted in the distillery. $erala Btate *everage ooperation issues permit as per the re1uest of the company. )e1uest is made on the basis of production.

3U LITY CONTROL DEP RTMENT

ompany(s motto is &2uality is our most important product'. The production and 1uality control personnel(s work hand in hand to maintain the 1uality. 8ith this end in view" vigorous checking of all raw materials and finished goods are enforced which pays a very good dividend. The 1uality control laboratory is fully e1uipped with the most modern instruments to analyse and ascertain the 1uality of the incoming raw materials" water and various other ingredients used for production.

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McDowell and co ltd E))2uen+ Trea+-en+ P2an+ ,T% is working as per the norm of the $erala state pollution control board. The waste generated from the alcohol distillation plant i.e. spent wash is a potent organic pollutant. It will destroy a1uatic life. *y the implementation of ,T% the company is contributing much to the economy substituting the economy substituting the cost of petroleum grade by methane generated from the process for burning their boilers # supervisor heads the department.

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McDowell and co ltd

1.4PRODUCT PROFILE
PRODUCTS FROM MCDO6ELL 7CO LTD8CHERTHALA9

#R NDY
Go. + McDowell brandy easer *randy @oney *ee *randy 9olden *ee *randy 9olden #mber *randy EIG 9rape *randy )ich )ichard *randy

&"IS5Y
Bingle Malt 8hisky Bignature 8hisky %remium 8hisky Eintage lassic 8hisky Go.+ Mcdowell whisky Diplomat 8hisky

RUM
Fld ask )um elebration Tiger )um )uby )um *agpiper ?orbes Dry 9in *lue )iband 9in )ed )iband Eodka #bsolute rystal Eodka

$IN

0OD5

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McDowell and co ltd

1.6 OPER TION L CONCEPT

INTRODUCTION TO INCENTI0E SC"EME
Today labour plays an important role in the successful functioning of any organization. Bo the pay package is one of the obvious and visible e:pressions of the employment relationship6 the main issue in the e:change between employer and employee" e:pressing the connection between the labour market" the individual(s work and the performance of the employing organization itself. ompensation or pay is one of the most important of the staffing function. 8orkers must be compensated for their efforts to satisfy their physical and social needs. It is the best method of attracting the employees to get the work done. This motivates them for better performance. ,mployee compensation should be fair both to employer and employee. #s a student of @)M" I have taken up the study to know the effectiveness of the incentive scheme offered by the company. 7In*en+i8e -ean( +,a+ 1,i*, in*i+e( or ,a( a +enden*/ +o in*i+e a*+ion -$eorge R Terr/.

#n incentive scheme is a plan or program to motivate individual or group performance. #n incentive plan is to increase the productivity of workers by encouraging them or motivating them to bring out the best in them. #n incentive could be" therefore" either be monetary benefits in the form of cash" bonus system or non-monetary benefits like promotion plans" training schemes etc. Monetary incentive is more important than non-monetary incentive. In the late +H44s ?rederick Taylor popularized the use of financial incentive- financial rewards paid to workers whose production e:ceeds some predetermined standard. The main principle is to reward an efficient worker and penalise the inefficient ones. #s a supervising employee of the Midvale steel company" what especially intrigued him was the fact that some of these same employees still had the 54 M) Institute of Technology" *angalore

McDowell and co ltd energy to run home and work on their cabins" even after a hard +5-hour day. Taylor knew that if he could find some way to harness this energy during the workday" huge productivity gains would be achieved.

O#9ECTI0E

The ma0or ob0ectives or of incentive scheme areI To increase the volume of production.

To improve the 1uality of product.

To increase the efficiency of staff

To reduce the absenteeism in staff

To raise the morale of staff.

CL SSIFIC TION

Incentives can be classified in to ?inancial or monetary incentives

Gon-financial or non-monetary incentives.

?inancial incentives mean to induce the workers to work hard by offering them the reward for e:tra work in terms of money6 financial incentive is more important than non-financial incentive.

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McDowell and co ltd

INCENTI0ES OR P Y FOR PERFORM NCE PL NS

Pie*e1or: .2an( %iece work plan is a direct productivity based compensation system in which an employee is paid for each unit of production. S+andard ,our .2an( Btandard hour plan is time based compensation system where the wages are directly calculated on the amount of time worked.

Tea- or grou. 8aria;2e .a/ in*en+i8e .2an(.

Eariable pay is different from individual incentive plan or programmes. Eariable pay refers to any plan" usually a group plan that ties pay to productivity or to some other measures of the firm(s profitability. In other words" a true variable pay plan must group" team or company oriented. Fn the other hand gain sharing plan and organization wide profit sharing are variable pay plans.

INCENTI0E FOR M N $ERS ND E<ECUTI0ES

S,or+ +er- in*en+i8e = +,e annua2 ;onu(

*onus is an e:tra payment to the workers beyond the normal wage .*onus is a share of a workers in the prosperity of workers of an organization. it is treated as a source of bridging the gap between actual wage and the need based wage

L."- &)r! i"()"&i:)0 .r (a%i&al a(($!$la&i." %r.-ra!!)0 0&.(, .%&i."0.

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INCENTI0ES FOR S LES PEOPLE

Sa2ar/ .2an Balary plan is a plan where the payment that is consistent from period to period despite the number of hours worked. It can said that the direct remuneration paid to an employee for compensating his service to organization. Co--i((ion .2an ombination plan is a compensation computed as a percentage of sales in units or rupees. In this sales people receives a percentage of the value of sales made.

Co-;ina+ion .2an ombination plan means salary plus commission plan. It is most fre1uently used for the method which combines the stability of a salary with the performance aspect of a commission. # common split is H4= salary and 54= commission.

INCENTI0ES FOR OT"ER PROFESSION LS ND EMPLOYEES

Meri+ .a/ It is also called task or skill based pay. ompensation is paid for the skills of employees who are

more versatile and have continued to develop their skills through cross functional training.

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OR$ NIS TION &IDE 0 RI #LE P Y PL NS

Pro)i+ (,aring .2an( These are the plans where it distributes a portion of the profit of the organization to employees

E-.2o/ee( (+o*: o1ner(,i. .2an It is a plan where by employees gain stock ownership in the organization for which they work.

$ain (,aring

9ain sharing programmes are organization wide pay plans designed to reward employees for improvements in organizational productivity. It includes employee suggestions and participation. #ny incentive plan is more likely to succeed if implemented with management support" employee acceptance and a supportive culture characterized by teamwork" trust and involvement at all level.

&"EN TO USE INCENTI0ES

+. 8hen employees are unable to control 1uantity or output" pay based on time may be more appropriate. 5. 8hen delays in the work are fre1uent and beyond employee(s control" it is impractical to tie worker(s pay to their output. .. Most incentives are given for the 1uantity rather than the 1uality of output. 8hen 1uality is a primary consideration pay based on time is often more appropriate. 3. 8hen employees are attracted to the other outside opportunities

53 M) Institute of Technology" *angalore

McDowell and co ltd

INCENTI0E SC"EMES IN MCDO&ELL' CO LTD

Management of McDowell & o !td and unions entered into a long term on +-.-5444. This

agreement includes an anne:ure on production incentive scheme for workmen / staff members. *efore this agreement the company had a production bonus system. #t that time plant capacity was H444 liters per day. %revious agreement was based on annual production. 8orkers had claim for production bonus only if the annual IM?! for production during the calendar year e:ceeds 3.< lakhs of cases.

ENTITLEMENT OF PRODUCTION #ONUS

aD ?or annual production upto 3.< lakhs bD ?or every +4444 cases produced between 3.< lakhs to 3.H lakhs cD ?or every +4444 cases produced between 3.H lakhs to < lakhs dD ?or every +4444 cases produced between < lakhs to <.5 lakhs eD ?or every +4444 cases produced between <.5 lakhs to <.3 lakhs fD ?or every +4444 cases produced between <.3 lakhs 3= of total salary ..< =of total salary 5= of total salary +.<= of total salary += of total salary nil

5< M) Institute of Technology" *angalore

McDowell and co ltd The above bonus was provided to workers along with the annual bonus. !ater a new plant was installed in the company. %lant capacity then raised to 54444 liters per day. The e:pected production bonus system was placed by the present production incentive scheme. %resent incentive scheme covers both the categories of employees in the company namely general and the bottlery. The employees in bottlery are entitled with a higher percentage of incentive than the general category. #s the process in the bottlery is a sort of chain work" employees in the bottlery receive the same percentage of incentive. The incentive is calculated only on the basis of actual production accounted in the warehouse e:cept production taken during the overtime. Incentive payment is calculated on a monthly basis as per the agreed formula and it is paid once in . months. T ) (al($la&i." .; %r.3$(&i." i"()"&i:) i0 1.r,)3 .$& a0 ;.ll.10<

%roduction incentive= 9eneral / staff aD Monthly production up to ;3>>> cases bD Monthly production of ;<444 cases of finished IM?! products in cases 34.44= 3-.5<= Gil Gil *ottlery

cD *etween ;<44+ & -4444 c/s dD *etween -444+ & -<444 c/s

+.3= 4.H4=

+.H< = for every +444cases +.H< = for every +444cases

5; M) Institute of Technology" *angalore

McDowell and co ltd eD *etween -<44+ & H4444 c/s fD *etween H444+ & H-444 c/s gD *etween H-44+ & +44444 c/s L hD +4444+ cases & above 4.H4= 4.H4= 4.>5= 4.;<= +.H< = for every +444cases +.H< = for every +444cases +.<4 = for every +444cases +.54 = for every +444cases

In case the production level is in between the incentive will be paid on the actual no of finished IM?! cases and payments will be made proportionately. ,ven though the minimum production for becoming eligible for incentive is ;<444 cases per month" and amount of )s <<4 is paid to the bottlery employees and an amount of )s 3-4 is paid to general staff employees in permanent category for full attendance. 8hen the production id between <<444 cases and ;3>>> c/s. sub0ect to the following conditions. aD The said payment will not be given if the fall in production from ;<444 c/s. is due to non co operation in any form from the part of workmen" une:pected suspension of operation" cessation of bottling and / or ,G# plant activities due to e:traneous reasons like harthal/ bandh etc. bD cD If for any reasons" what so ever production false bellow <<444 c/s. in a month the said payment will not be made The said payment will not attract statutory or other benefits e:cept ,BI.

5M) Institute of Technology" *angalore

McDowell and co ltd

2.1 T"E MC5INSEY >S MODEL

&" T IS (e8en S MODEL?
The seven B models is a tool for managerial analysis. It provides a structure with which to consider a company as a whole" so that any problem in the organization can be diagnosed and a strategy may be developed and implemented. The seven B frameworks help in analyzing an organization(s effectiveness spanning different areas. T,e Se8en Fa*+or( are@ S&ra&)-y'# set of actions that the organization starts with and must maintain. S&r$(&$r)'@ow people and tasks / work are organized Sy0&)!0'#ll the processes and information flows that link the organisation together S&yl)'@ow managers behave S&a;;'@ow the organization develops its managers Ccurrent and futureD. S ar)3 :i0i."'!onger-term vision and the values of the organization that shape its destiny. S,ill0'Dominant attributes or capabilities that e:ist in the organization

5H M) Institute of Technology" *angalore

McDowell and co ltd

The - s diagram illustrates the multiplicity interconnection of elements that defines an organization(s ability to change. The theory helped to change the mangers thinking about how companies could be improved. It says that it is not 0ust a matter of devising a new strategy and following it through. Gor is it a matter of setting up new systems and letting them to generate improvements. To be effective" your organization must have a high degree of fit or internal alignment among all -B(s. ,ach B must be consistent with and reinforce the other B(s. #ll B(s are interrelated" so a change in one has a ripple effect on all others. It is impossible to make a progress on one without a making progress on all. Thus to improve the efficiency" the organization have to pay attention to all of the - elements at the same time.

S+ra+eg/
Btrategy is a plan of an organization formulates to gain sustainable advantages over a competition. Btrategy is the art of devising and employing a system of activities that mobilizes all resources toward a valuable goal. The company(s strategy for the current year is to &achieve growth with profit focus'. The company has come over their ob0ectives so many times and posted the ambition #TT#IGB 8@#T #M*ITIFG B,,$B' like &@#)D 8F)$

S+ru*+ure
Btructure describes the hierarchy of authority and accountability in an organization. It represents the reporting system of an organization. These relationships are fre1uently diagrammed in organizational charts. Thus organization structure is a pattern of relationships among various activities and positions. # good industrial relation e:ists in the organization. The management and the employees 0ointly find the solutions for organizational problems. There is a good employee employer relationship within the organization.

5> M) Institute of Technology" *angalore

McDowell and co ltd

OR$ NIA TION L STRUCTURE<

HEAD DISTILLERY

Sr. C."; S)(y

Di0&ill)ry Ma"a-)r

H)a3 Fi"a"() 7 A((.$"&0

H)a3 C.!!)r(ial

H)a3 ETP

H)a3 Pr3" 1 S$%3& Pr3" 1

H)a3 H)a3 P7A

S&.r)0 7 P$r( a0)

H)a3 B.&&li"-

H)a3 >C

H)a3 Mai"&)"a"()

O;;i()r ' #

S$%3& B.&&li"-

O;;i()r >C

=r. O;;i()r Mai"& '#

=r. O;;i()r0 ' #

=r. O;;i()r0 ' # =r. O;;i()r0 ' * O;;i()r B.&&li"- ' # =r. O;;i()r0

S&a;; ' #

S&a;; ' #

S&a;; ' #

=r. O;;i()r Mai"& ' 1

S&a;; ' 1

S&a;; ' #

S&a;; ' /

S&a;; ' *

S/(+e-(
.4 M) Institute of Technology" *angalore

McDowell and co ltd

In)or-a+ion (/(+e-( #t McDowell(s" all employees are communicated of the recent development of the industry" health" safety" discipline and also the changes in the statutory legislations by wide notice which is displayed on the notice board. The media of communication used by the organizations are magazines or 0ournals" employee(s papers" notice boards" 7* 9roup 0ournal etc. In the Frganization(s a system known as suggestion system is introduced in order to know the views of the employee(s staff etc. monthly meeting are held with trade unions.

In+erna2 Con+ro2 S/(+e-(

The ompany has a robust system of internal controls which have been incorporated into their

enterprise-wide B#% system. #dditionally" checks on the system are carried out throughout the year by a network of independent auditors at branches" the ompany(s own operations review team" and is also sub0ect to review by the 7* 9roup Internal #udit Department. Finan*ia2 (/(+e-@ The accounts of the company has maintained under the sound system of double entry bookkeeping. The company followed the computerized accounting system. #ll the duties of the firm should be entered in to the computer. ,veryday the company collected the financial data from each department for smooth functioning of the company. The financial manager controlled the process of preparing report and send to the head office

S+/2e

.+ M) Institute of Technology" *angalore

McDowell and co ltd McDowell believes that leadership is one of the most essential ingredients of organisational success" which is provided by its hairman6 Mr. Ei0ay Mallya. !eadership is based on high business vision and predominantly supportive styles. There is an emphasis on developing leadership 1ualities among employees throughout the organisation so that no one performs his role in vacuum. Top management emphasizes on open-door policy" continuous sharing of information" takes inputs from employees in decision-making" and builds personal rapport with employees.

S+a))
Dr. Vijay Mallya? C air!a"? .; & ) UB Gr.$%? 0$!0 $% & ) Gr.$% Mi00i." S&a&)!)"& a0 ;.ll.10< @6E RECOGNISE THAT PEOPLE ARE OUR MOST VALUABLE ASSET.M 8ith this mission" the ompany invites individuals with a vision" innovation and creativity to be a part of the team. 8hile the company believes in pursuing accomplishment of challenging tasks" sheer hard work and perseverance are an integral part of McDowellNs work culture. In fact" McDowell fosters a culture of diligence" openness" autonomy" change orientation" innovation" dynamism and team spirit. In such an environment where constructive dissent is also encouraged" performance appraisal is based on the M*F system. The employees are rewarded strictly on the basis of their performance" and are encouraged to strive for more challenging targets every year. 8ith an emphasis on personal integrity of the employee" the company also encourages people to have fun through company-organised parties" inter-department matches and get-togethers. %ositions in the company are primarily filled by internal promotions. 8hen a suitable internal candidate is not available" the company turns to advertisements and @ead @unters. ampus recruitment is used to supplement e:ternal recruitment. Management graduates" ,ngineers" Bystems professionals" the organisation. hemists and Balesmen are taken from campus to infuse new thinking into

.5 M) Institute of Technology" *angalore

McDowell and co ltd 8ell-formulated training schemes are followed for each category to provide the trainees a feel of the organisation so that they are well prepared to shoulder their responsibilities. 8ith this training" the company also helps the trainee develop a sense of worth" willingness to achieve great things" to positively respond to challenges and an ability to meet customer demands. #part from other channels" vacancies are also posted on-line on website" along with an on-line process for submission of your resumes for different categories - Management Trainees , ,ngineering" hemists" Bales...

S,ared 8i(ion
,verything starts in an organization from OEision(. ?ocus is the driving factor of McDowellNs

vision. Fne that seeks to M... profitably dominate the Indian Bpirits Industry in each product category across segments and markets and deliver value to stakeholders. The pursuit of this vision is implemented through creating and offering 1uality products across all segments and flavors. 8orking backwards from its vision" the company( mission statement gives it a clear road map for its operations. The mission isI T. %r.;i&a5ly 3.!i"a&) & ) I"3ia" S%iri&0 I"3$0&ry i" )a( %r.3$(& (a&)-.ry a(r.00 0)-!)"&0 a"3 !ar,)& a"3 3)li:)r :al$) &. 0&a,) .l3)r0 5y

Investing in the core brands to meet ever changing consumer e:pectations Fffering 1uality products and value for money to the consumers onstantly controlling costs to be the lowest cost producer %articipating with the 9overnment in policy formulation reating an organisation that is responsive" positive and driven by business and social needs

S:i22(
The various activities of personnel administration are very important. )ecruitment is carried out within the organization. The manpower is very high. The e:ecutive category selection is done at the .. M) Institute of Technology" *angalore

McDowell and co ltd head office *angalore. Go handbook is supplied at the time of the selection. #t the time of the induction into the organization a copy of company standing orders" which lays down the rules and regulations" is given to the candidate. The company provides to the employees who are selected" for a period of one year. Bpecialized training is given to both skilled and unskilled worker(s. Earious training programmes are proposed which include programmes on team building & conflict management" introduction to management" time management" decision making and problem solving" negotiation skills etc. The supervisors and workmen are educated through role playing" 0ob rotation conferences" training programmes etc. Monthly meetings are held with trade unions. ,valuating individual performance at work has always been a hard task. The ob0ective performance evaluation was flagged off in the spirit division" since all e:ecutive in the division has under gone a two- day intensive training session on laying down BM#)T ob0ectives. #de1uate wages are being paid and respective rewards and incentives are given to the employees. The management has freedom to transfer workers from one department to another. Discipline is being maintained and indiscipline is not tolerated if repeated after several warnings. There have been no lockouts and strikes for several years. The relationship between the employers and employees is very healthy. ,mployees en0oy their benefits. 8orkers( participation is also being practiced. The management seeks the views of the workers and the trade union whenever necessary. ompany gives more importance to its personnel activities" which enables the organization to carry on in a smooth manner. >4= of the products are manufactured by this company are purchased in bulk by $erala Btate *everage orporation" an autonomous body constituted by the 9overnment of $erala for wholesale contribution of the IM?! in $erala state. The rest of product is sold to Tamil Gadu" %odicherry" and Mahe. The company(s products are available at .4444 retailers" +;444 bars and over ;44 clubs .3 M) Institute of Technology" *angalore

McDowell and co ltd across the country in addition to having achieved the no.5 status in the canteen stores department outlets. Re(ear*, and de8e2o.-en+ )esearch and development is one of the important sections .; & ) $"i&. T ) &a0&) %a")l &)0&0 & ) liA$.r 5);.r) i& i0 $0)3 ;.r 5.&&li"-. R)0)ar( i"".:a&i."? i!%r.:i0a&i." a"3 %r.()00. T ) (.!%a"y ".1 0)&$% a &)( "i(al 3i:i0i." a& Ba"-al.r)? 1 i( 1.$l3 %r.:i3) a0 5))" (."3$(&)3 &.1ar3 0$0&ai")3 A$ali&y & r.$- a3:a"()3 &)( ".l.-y. F$ll';l)3-)3 r)0)ar( a"3 3):)l.%!)"& 3)%ar&!)"& ;.($0)0 ."

(.!%r) )"0i:) i"%$&0 &. & ) 0(i)"() .; 3i0&illi"- a"3 ar& .; 5l)"3i"-. T i0 3i:i0i." 1.$l3 0)&$% ")1 0&a"3ar30 ;.r A$ali&y a00$ra"() a"3 %r.3$(& 3):)l.%!)"&. S.!) .; & ) i!%.r&a"& %r.j)(&0 $"3)r&a,)" ar) i" & ) ;i)l3 .;< Trai"i"- .; & ) %)r0."")l ;.r 0)"0.ry r):.l$&i."? & i0 a0 3ir)(&ly 5))" (.!%l)&)3 1i& & ) ()"&ral ;..3 &)( ".l.-y r)0)ar( i"0&i&$&). C.!%$&)r 0i!$la&i." .; 3i0&illa&i." %r.()00 &. i!%r.:) & ) A$ali&y .; 0%iri&0.

2.2 S&OT

N LYSIS

&,a+ i( (1o+ na2/(i(?

.< M) Institute of Technology" *angalore

McDowell and co ltd S6OT analysis is a tool for auditing an organization and its internal and external environment
environment. It is the first stage of planning and helps marketers to focus on key issues.

# scan of the internal and e:ternal environment is an important part of the strategic planning process. ,nvironmental factors internal to the firm usually can be classified as strengths C SD or weaknesses C6D" and those e:ternal to the firm can be classified as opportunities C OD or threats CTD. Buch an analysis of the strategic environment is referred to as a S6OT a"aly0i0 The B8FT analysis provides information that is helpful in matching the firmNs resources and capabilities to the competitive environment in which it operates. #s such" it is instrumental in strategy formulation and selection. The following diagram shows how a B8FT analysis fits into an environmental scan

S&OT na2/(i( Fra-e1or:

E":ir."!)"&al S(a" .; M) Institute of Technology" *angalore

McDowell and co ltd

I"&)r"al A"aly0i0

EB&)r"al A"aly0i0

S&r)"-& 0

6)a,")00)0

O%%.r&$"i&i)0 T r)a&0

S6OT Ma&riB

Si-.2e ru2e( )or (u**e(()u2 S&OT ana2/(i(

The organization should be realistic about its strengths and weaknesses. #nalysis should distinguish between where the organization is today" and where it could be in the future. Frganization should be specific in its approach towards what they do.

Frganization should always embrace competition analysis. i.e. where they stand in relation to its competitors. It is not simply enough to identify the strengths" weaknesses" opportunities" and threats of a company. In applying the B8FT analysis it is necessary to minimize or avoid both weaknesses and threats. 8eaknesses should be analysed to convert them into strengths. !ikewise" threats should be converted into opportunities. !astly" strengths and opportunities should be matched to optimize the capacity of a firm. #pplying B8FT in this fashion can obtain leverage for a company CMarketing Btrategy" +>>HD.

.M) Institute of Technology" *angalore

McDowell and co ltd #s can be seen" B8FT analysis can be e:tremely beneficial to those who ob0ectively analyze their company. The marketing manager should have rough outline of potential marketing activities that can be used to take advantage of capabilities and convert weaknesses and threats. @owever" at this stage" there will likely be many potential directions for the managers to pursue. Due to the limited resources that most firms have" it is difficult to accomplish everything at once. The manager must prioritize all marketing activities and develop specific goals and ob0ectives for the marketing plan C ontemporary Marketing" +>>5D

S+reng+, and 1ea:ne(( o) M*Do1e22 ' Co.

S+reng+, +. #s the company the distillery is situated on the banks of Eembanad !ake" Earanad" about 3 $ms away from cherthala town" which is along the G@ 3-. This location has several advantages to offer like water supply" resources" logistical advantages etc. 5. The number of employees in the company is not too large. This results in maintaining good management A employee relationship and also managing the company becomes easier. .. The current production can be increased further by improving the e:isting capacity of the distilling plant. This provides the distillery the capability to handle peak and fluctuating demands. 3. #s discipline is maintained in and outside the company premises" the company runs in a smooth manner without many problems. Training is given to both the workers and the officials. This gives them an awareness of the rules and procedures" to guide their behaviour. *esides" training results in 1uality improvement" fulfillment of future personnel needs" improves health and safety and helps to increase productivity. <. The ;. ompany has a robust system of internal controls which have been incorporated into their enterprise wide B#% system. ontinuing investment in modernization and upgradation of manufacturing facilities and investment in stocks of special spirits will ensure the delivery of superior 1uality and value to the consumers.

.H M) Institute of Technology" *angalore

McDowell and co ltd &ea:ne((e(

+. 5. products. .. 3.

The profit of the company depends upon the abkari policy which is decided by the state government. The enhancement of e:cise duty affects production and marketing of the The raw material" which is used for production of li1uor" is molasses and this is brought from other states. Bo there is high transportation cost #s per the present policy of the government does not allow the company to advertise its products in medias6 these advertisements are done in a disguised manner. This hampers the brand building e:ercise to a large e:tent.

Opportunities

1. I"(r)a0)3 )B%.0$r) &. &

) 1)0&)r" ($l&$r) .; & ) (."0$!)r0.

5. 7rbanization of the modern youth. .. hanges in the mindset of the public about li1uor consumption

3. @uge untapped market. <. !ow per-capita consumption compared to the global average. ;. onversion opportunities from the unorganized spirit segment.

-. Two Third of India(s population is under the age of .<" the ma0or consumption group.

.> M) Institute of Technology" *angalore

McDowell and co ltd

Threats

+. %ossibility of the giant foreign players entering the home market. 5. Increasing presence of the global players on the home turf.

.. Fver ta:ation and over-regulation of the production and distribution. 3. <. agreement. ;. )ising input costs. ompetition from lower priced segments. !owering of the import tariffs on spirits by the Indian govt. as a result of the 8TF

34 M) Institute of Technology" *angalore

McDowell and co ltd

DESI$N OF T"E STUDY

4.1 NEED FOR T"E STUDY
To analyze the prospects of incentive scheme given in industry and its impact on efficiency of staff and the bottlery workers.

4.2 ST TEMENT OF PRO#LEM

The problem for the present study has been designed as followsI

(+ud/ on T,e E))e*+i8ene(( o) In*en+i8e S*,e-e(B

4.4 O#9ECTI0E OF T"E STUDY

PRIM RY O#9ECTI0E@ To evaluate the effectiveness of incentive scheme offered in the organization

SECOND RY O#9ECTI0E@

To understand the labour management relationship.

To study the relationship between the incentives provided and the productivity.

To study the history" growth" &development of the company.

To make a study of long-term agreement signed between the management and unions in the organization

3+ M) Institute of Technology" *angalore

McDowell and co ltd

4.6 MET"ODOLO$Y OF RESE RC"

SOURCES OF T"E D T

#ll personnel researchers can tap two sources of data for investigation viz-internal source and e:ternal source. ?acts and figures are raw materials with which a research works. Information available within the organization of study is known as internal data" which are ine:pensive to collect. #ll other sources of information are e:ternal sources of data6 the sources of information are also often referred to as primary and secondary data.

PRIM RY SOURCE %rimary data is personally developed and gives the latest information. They are not published source of data and have to be created. The process of primary data collection is highly time consuming and involves high cost. *ut it offers accuracy and reliability. The data is gathered specifically for the problem of study. SECOND RY SOURCE

Becondary data are published or semi-published data. They are cheaper source of data and the unit of cost of information is very low. They are reality available for processing and saves time. The entire preliminary investigation is based on secondary data. Data regarding the profile of the organization has been collected from different source like 0ournals" company files" and by holding discussions with personnel manager.

35 M) Institute of Technology" *angalore

McDowell and co ltd

S MPLE DESI$N

SIAE OF S MPLE Bample size for bottlery employees is +44 and for general staff category is <4

S MPLIN$ PROCEDURE

Deliberate sample techni1ues were adopted. In this method of sampling" samples were taken on deliberate selection of particular units of universe. Deliberate sampling is known as purposive or non- probability sampling. COLLECTION OF D T 8hile deciding about the method of data collection the researcher would have to decide which sort of data he would be using for his study and accordingly the data collection would be adopted. There are two sources of data" viz" primary and secondary data as e:plained above. N LYSIS OF D T The data collected were analysed through tabulation" simple percentage method and correlation analysis.

TOOLS ND TEC"NI3UES FOR D T

COLLECTION

This part presents the tools and techni1ues adopted for field study" the measurement concepts and statistical procedure employed for the analysis of data collected. The tools and techni1ues areI -

3. M) Institute of Technology" *angalore

McDowell and co ltd

1. PILOT STUDY

?irstly" a pilot study was conducted to estimate the feasibility of the study. This study was conducted for one week" which played a ma0or role in defining the overall environment of the company as well as mental attitude of the company of the employees in the company. 2. CONSTRUCTION OF T"E 3UESTION IRES 2uestionnaires were designed in clear-cut form to get information about the impact of incentive scheme. The 1uestionnaires were framed in order to get full information covering both the categories of employees namely bottling and general staff. It contains both open end and close end 1uestions. 4. RESE RC" PRO#LEM The problem was to study the effectiveness of incentive scheme offered by the company.

6. RESE RC" DESI$N )esearch design used is descriptive research where the researcher defines clearly what he wants to measure and must find ade1uate means to clear specification of what" who" when" where" why and how aspects of research. In this method statistical research design is used" as the research includes percentage" correlation and other tools like 1uestionnaire schedule and observations in the research study.

C. S MPLE DESI$N

Bample size for bottlery employees is 34 and for general employees is 54.Delibrate sample techni1ue was adopted

33 M) Institute of Technology" *angalore

McDowell and co ltd

D. SOURCES OF D T The primary data was collected from officials" employees and through practical observation. 2uestionnaires were prepared for both bottlery employees and general / staff category and data was collected from simultaneous interviews and observation. Becondary data collected from office records" magazines and documents available in the organization and also through company websites. The data collected were analysed through tabulation" simple percentage and correlation analysis.

4.C SCOPE OF T"E STUDY

The research study was confined to staff and workers of McDowell and company !td" herthala. The research study is conducted to identify the effectiveness of incentive scheme offered to the bottlery employees and general staff in the organization. This pro0ect also helps one to understand the functioning of various departments in the company. Earious analysis are made and necessary suggestions and recommendations were given relevant to the conditions prevailing in the organization. The findings and suggestions from this study would help the company to frame a suitable incentive scheme for the better operation.

RESE RC" DESI$N

INTRODUCTION TO RESE RC" )esearch means a systematic investigation. The word itself suggests re-e:amination. It is a 1uest for knowledge. )esearch may be defined as a process of knowing new facts and verifying old ones by application of scientific methods to a natural or social phenomenon. #ccording to Dale Koder" 3< M) Institute of Technology" *angalore

McDowell and co ltd &)esearch is a shortcut to knowledge & understanding which can replace the slower" more precious road 4f trial and error in e:perience'.

INTRODUCTION TO RESE RC" DESI$N # research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

RESE RC" DESI$N FOR DESCRIPTI0E STUDIES Descriptive research design is one that simply describes something such as demographic characteristics of groups" community or people. Descriptive research is used when the purpose of study is A +. To estimate the proportion of the people in a specified population who behave in a certain way. 5. To make specific predictions .. To determine whether certain variables are associated. Descriptive are formal and rigid in nature. # descriptive study re1uires clear specifications of who" what" when" where" why and how aspects of research. The two basic types of research designs used in descriptive research areI +. ase )esearch Btudy

5. Btatistical )esearch Btudy.

3; M) Institute of Technology" *angalore

McDowell and co ltd

4.DLIMIT TION OF T"E STUDY

+. Due to the time constraints it was not possible to cover the entire universe . 5. !imitations are imposed on the research by budget constraints. .. ?ear about management lead employees to conceal real activities. 3. The production process is of continuous type with three shifts. Bo the researcher was able to collect data only from employees in the day shift. <. The study could have been made more elaborate" but it was confined to limited number of respondents.

3M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) /.1 G)"3)r S&a&)

*ottlery ,mployess

9ender

Go of )espondents

= of )espondents

Male ?emale

5> ++

-. 5-

Total

34

+44

3H M) Institute of Technology" *angalore

McDowell and co ltd

Male emale

C" RTE6.1
INTERPRETATION< ?rom the above "we can see that -.= of respondents are male and 5-= of the respondents are female.

3> M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) /.# G)"3)r S&a&)

9eneral / Btaff ategory

9ender

Go of )espondents

= of )espondents

Male ?emale

+; 3

H4 54

Total

54

+44

<4 M) Institute of Technology" *angalore

McDowell and co ltd

Male emale

CHART '/.#
INTERPRETATION< ?rom the above" we can see that H4= of respondents are male and 54= of respondents are female.

Ta5l) /.* E3$(a&i."al 5a(,-r.$"3 .; )!%l.y))0

<+ M) Institute of Technology" *angalore

McDowell and co ltd

*ottlery ,mployees

2ualification

Go of )espondents

= of )espondents

%rimary Becondary %re degree Degree %ost 9raduation Technical 2ualification

3 ++ +4 ; 5 -

+4 5H 5< +< < +-

Total

34

+44

<5 M) Institute of Technology" *angalore

McDowell and co ltd

!.% !.$" !.$ !.#" !.# !.!" ! &rimary 'econdary &re degree (egree &ost )raduation Technical *ualification

CHART /. *
INTERPRETATION< ?rom the above" we can see that +4= of the respondents are primary educated" 5H= of the respondents are secondary educated" 5<= of the respondents are pre degree" +<= of the respondents are graduates <= of the respondents are post graduates and +-= of respondents are technically 1ualified. Ma0ority of employees are secondary educated.

Ta5l)/. / Edu*a+iona2 ;a*:ground o) e-.2o/ee(

<. M) Institute of Technology" *angalore

McDowell and co ltd

9eneral / Btaff ategory

2ualification

Go of )espondents

= of )espondents

%rimary Becondary %re degree Degree %ost 9raduation Technical 2ualification

+ 5 . > 5 .

< +4 +< 3< +4 +<

Total

54

+44

<3 M) Institute of Technology" *angalore

McDowell and co ltd

!." !.+" !.+ !.%" !.% !.$" !.$ !.#" !.# !.!" ! &rimary 'econdary &re degree (egree &ost )raduation Technical *ualification

CHART /./
INTERPRETATION< ?rom the above" we can see that <=of the respondents are primary educated" +4= of the respondents are secondary educated" +<= of the respondents are pre degree" 3<= of the respondents are graduates and +4= of the respondents are post graduates and the +<= of the respondents are technically 1ualifed.Ma0ority of staff category are graduates.

Ta5l) /. 2

A-) Cla00i;i(a&i."
<< M) Institute of Technology" *angalore

McDowell and co ltd

*ottlery ,mployees

#ge 9roups

Go of )espondents

= of )espondents

*elow .4 .4 - 34 34 - <4 #bove <4

Gil +. 53 .

Gil .. ;4 -

Total

34

+44

<; M) Institute of Technology" *angalore

McDowell and co ltd

-!, "!, +!, %!, $!, #!, !,

.elo/ %!

%! - +!

+! - "!

01ove "!

CHART /.2

INTERPRETATION< ?rom the above we can see that the age below .4 is nil" between .4- 34 is ..=" between 34 A <4 is ;4= and above <4 is -=.

Ta5l) /.4

A-) Cla00i;i(a&i."
<M) Institute of Technology" *angalore

McDowell and co ltd

9eneral/staff category

#ge 9roups

Go of )espondents

= Ff )espondents

*elow .4 .4 - 34 34 - <4 #bove <4

Gil H > .

Gil 34 3< +<

Total

54

+44

<H M) Institute of Technology" *angalore

McDowell and co ltd

+", +!, %", %!, $", $!, #", #!, ", !, .elo/ %! %! - +! +! - "! 01ove "!

CHART /.4
INTERPRETATION ?rom the above we can see that the age below .4 is nil" between .4- 34 is 34=" between 34 A <4 is 3<=and above <4 is+<=.

Ta5l)'/.C
<> M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) %ai3 a3)A$a&)ly ;.r & ) j.5 & )y %)r;.r!

*ottlery employees

)esponses

Go of )espondents

= Ff )espondents

Kes

.+

-H

Go

<

Bometimes

+-

Total

34

+44

;4 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /.C
INTERPRETATION< ?rom the above we can see that -H= of the respondents are of the opinion that they are paid ade1uately for the 0ob they perform" and <= of the respondents opposed it and +-= is not sure about it.

Ta5l) /.D

;+ M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) %ai3 a3)A$a&)ly ;.r & ) j.5 & )y %)r;.r!

9eneral/staff ategory

)esponses

Go of )espondents

= Ff )espondents

Kes

+3

-4

Go

+4

Bometimes

54

Total

54

+44

;5 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. D
INTERPRETATION< ?rom the above we can see that -4=of the respondents are of the opinion that they are paid ade1uately for the 0ob they perform and +4= of the respondents opposed it" and 54= of respondents are not sure about it.

Ta5l) '/.E
;. M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:) %r.:i3)3 5y & ) (.!%a"y a00i0& )!%l.y)) "))30 .r ".&

*ottlery employees

)esponses

Go. of )espondents

= Ff )espondents

Kes

5-

;H

Go

Bometimes

+4

5<

Total

34

+44

;3 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. E
INTERPRETATION< ?rom the above" we can see that ;H= of the employees are of the opinion that the incentive provided by the company assist their needs" -= of them oppose it and 5<= of the employees are not sure about it.

;< M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) /.1F Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:)0 %r.:i3)3 5y & ) (.!%a"y a00i0& )!%l.y)) "))30 .r ".&

9eneral staff ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

+5

;4

Go

+4

Bometimes

.4

Total

54

+44

;; M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. 1F

INTERPRETATION< ?rom the above" we can see that ;4= of the employees are of the opinion that the incentive provided by the company assist their needs" +4= of them oppose it and .4= of the employees are of the opinion that incentives sometimes assists their needs.

Ta5l)'11
;M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) !a"a-)!)"& (r)a&)0 a"y i")A$ali&y 3$ri"& ) i"()"&i:) 3)&)r!i"a&i."

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

>

5.

Go

54

<4

Bometimes

++

5-

Total

34

+44

;H M) Institute of Technology" *angalore

McDowell and co ltd

yes no sometimes

CHART 11
INTERPRETATION< ?rom the above" we can see that <4= of the employees have the opinion that the management creates no ine1uality during the incentive determination and 5.= of the employees find that there is ine1uality .

;> M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) /.1# Ta5l) 0 .1i"- 1 )& )r & ) !a"a-)!)"& (r)a&) a"y i")A$ali&y 3$ri"& ) i"()"&i:) 3)&)r!i"a&i."

9eneral/staff category

)esponses

Go of )espondents

= Ff )espondents

Kes

34

Go

+4

<4

Bometimes

+4

Total

54

+44

-4 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. 1#

INTERPRETATION< ?rom the above"we can see that <4= of the employees have the opinion that the management creates no ine1uality during the incentive determination and 34= of the employees find that ine1uality creates and +4= are not sure about it.

Ta5l) /.1*
-+ M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:) 0( )!) %r.:i3)3 5y & ) (.!%a"y li", 1i& & ) 1.r, 5))" %)r;.r!)3

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

.5

H4

Go

<

+.

Bometimes

Total

34

+44

-5 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. 1*
INTERPRETATION< ?rom the above" we can see that H4= of the employees have the opinion that the incentive scheme provided by the company linked with the work being performed and +.= of them opposed it and -= of them have the opinion that the incentive scheme provided by the company sometimes linked with the work been performed.

-. M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l)/. 1/ Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:) 0( )!) %r.:i3)3 5y & ) (.!%a"y li", 1i& & ) 1.r, 5))" %)r;.r!)3

9eneral /staff category

)esponses

Go of )espondents

= Ff )espondents

Kes

+4

<4

Go

.4

Bometimes

54

Total

54

+44

-3 M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART /. 1*
INTERPRETATION< ?rom the above" we can see that <4= of the employees have the opinion that the incentive scheme provided by the company linked with the work being performed and .4= of them opposed it and 54= of them have the opinion that the incentive scheme provided by the company sometimes linked with the work been performed.

Ta5l) /.12
-< M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r &ra3) $"i." %lay0 a r.l) i" 3)&)r!i"i"& ) 1a-)0 a"3 i"()"&i:)

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

.3

H<

Go

<

Bometimes

+4

Total

34

+44

-; M) Institute of Technology" *angalore

McDowell and co ltd

6!, 5!, 4!, -!, "!, +!, %!, $!, #!, !, 2es 3o 'ometimes

CHART /. 12

INTERPRETATION< ?rom the above" we can see that H<= of the employees have the opinion that the trade union plays a role in determining the wages and incentives"<= of them opposed it and +4= of them have the opinion that the trade union sometimes plays a role in determining the wages and incentives.

Ta5l)/. 14 Ta5l) 0 .1i"- 1 )& )r &ra3) $"i." %lay0 a r.l) i" 3)&)r!i"i"& ) 1a-)0 a"3 i"()"&i:)
-M) Institute of Technology" *angalore

McDowell and co ltd

-H M) Institute of Technology" *angalore

McDowell and co ltd

9eneral /staff category

)esponses

Go of )espondents

= Ff )espondents

Kes

+3

-4

Go

+4

Bometimes

54

Total

54

+44

-> M) Institute of Technology" *angalore

McDowell and co ltd

4!, -!, "!, +!, %!, $!, #!, !, 2es 3o 'ometimes

CHART /. 14
INTERPRETATION< ?rom the above" we can see that -4= of the employees have the opinion that the trade union plays a role in determining the wages and incentives"+4= of them opposed it and 54= of them have the opinion that the trade union sometimes plays a role in determining the wages and incentives.

H4 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) /.1C O%i"i." a5.$& & ) %r)0)"& i"()"&i:) 0( )!) (.!%ar)3 &. %r):i.$0 %r.3$(&i." 5."$0 0y0&)!

*ottlery ,mployees

Fpinion

Go of )espondents

= Ff )espondents

Eery 9ood 9ood Batisfactory *ad Eery bad

5< H ; + 4

;. 54 +< 5 4

Total

34

+44

H+ M) Institute of Technology" *angalore

McDowell and co ltd

!.4 !.!." !.+ !.% !.$ !.# ! 7erygood )ood 'atisfactory .ad 7ery 1ad

CHART/.1C
INTERPRETATION< ?rom the above" we can see that ;.= of the respondents have the opinion that when compared to previous production bonus system" present incentive scheme is very good"54= of them found it good and +<= of them found it satisfactory and 5= of them found it bad" and no one claims it is to be very bad one.

Ta5l) /.1D
H5 M) Institute of Technology" *angalore

McDowell and co ltd

O%i"i." a5.$& & ) %r)0)"& i"()"&i:) 0( )!) (.!%ar)3 &. %r):i.$0 %r.3$(&i." 5."$0 0y0&)!

9eneral / staff ategory

Fpinion

Go of )espondents

= Ff )espondents

Eery 9ood 9ood Batisfactory *ad Eery bad

3 H ; 5 4

54 34 .4 +4 4

Total

54

+44

H. M) Institute of Technology" *angalore

McDowell and co ltd

!.+" !.+ !.%" !.% !.$" !.$ !.#" !.# !.!" ! 7erygood )ood 'atisfactory .ad 7ery 1ad

CHART/.1D
INTERPRETATION< ?rom the above" we can see that 54= of the respondents have the opinion that when compared to previous production bonus system" present incentive scheme is very good"34= of them found it good and .4= of them found it satisfactory and +4= of them found it bad" and no one claims it is to be very bad one.

Ta5l)/. 1E
H3 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) (.!%a"y %r.:i3)0 a3)A$a&)ly ;.r & ) .:)r &i!) 1.r, %)r;.r!)3

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

.4

-<

Go

Bometimes

+-

Total

34

+44

H< M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.1E
INTERPRETATION< ?rom the above" we can see that -<= of the respondents have the opinion that they are paid ade1uately for the overtime work performed"H= of them opposed it and +-= of them have the opinion that the company sometimes provides ade1uately for the overtime work performed.

Ta5l) /.#F

H; M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) (.!%a"y %r.:i3)0 a3)A$a&)ly ;.r & ) .:)r &i!) 1.r, %)r;.r!)3

9eneral / staff ategory

)esponses

Go of )espondents

= Ff )espondents

Kes

++

<<

Go

54

Bometimes

<

5<

Total

54

+44

HM) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#F
INTERPRETATION< ?rom the above" we can see that <<= of the respondents have the opinion that they are paid ade1uately for the overtime work performed" 54= of them opposed it and 5<= of them have the opinion that the company sometimes provides ade1uately for the overtime work performed.

Ta5l)/. #1

HH M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r i"()"&i:) .;;)r)3 5y & ) (.!%a"y (r)a&) a"3 i!%r.:) i"3$0&rial r)la&i."0 i%

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

5<

;.

Go

+4

Bometimes

++

5-

Total

34

+44

H> M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#1
INTERPRETATION< ?rom the above" we can see that ;.= of the respondents have the opinion that incentive offered by the company helps in improving in industrial relations and +4= of them oppose it and 5-= of them have the opinion that the incentive offered by the company sometimes improves the industrial relations.

Ta5l) /.##

>4 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r i"()"&i:)0 .;;)r)3 5y & ) (.!%a"y (r)a&) a"3 i!%r.:) i"3$0&rial r)la&i."0 i%

9eneral /staff category

)esponses

Go of )espondents

= Ff )espondents

Kes

+<

-<

Go

<

Bometimes

54

Total

54

+44

>+ M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.##
INTERPRETATION< ?rom the above" we can see that -<= of the respondents have the opinion that incentive offered by the company helps in improving in industrial relations and <= of them oppose it and 54= of them have the opinion that the incentive offered by the company sometimes improves the industrial relations.

Ta5l) /.#* Ta5l) 0 .1i"- 1 )& )r !a"a-)!)"& &a,)0 )!%l.y)) 3)!a"30 i"&. a((.$"& 1 il) 3)&)r!i"i"- i"()"&i:)
>5 M) Institute of Technology" *angalore

McDowell and co ltd

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

54

<4

Go

+<

.H

Bometimes

<

+5

Total

34

+44

>. M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#*
INTERPRETATION< ?rom the above" we can see that <4= of the respondents claim that the management takes employees demands into account while determining incentives and .H= of them claim that their demands are not taken into account and +5= of them claims that sometimes the management takes their demands into account.

Ta5l) /.#/

>3 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r !a"a-)!)"& &a,)0 )!%l.y)) 3)!a"30 i"&. a((.$"& 1 il) 3)&)r!i"i"- i"()"&i:)

9eneral / staff ategory

)esponses

Go. of )espondents

= Ff )espondents

Kes

+4

<4

Go

+<

Bometimes

.<

Total

54

+44

>< M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#/
INTERPRETATION< ?rom the above" we can see that <4= of the respondents claim that the management takes employees demands into account while determining incentives and +<= of them claim that their demands are not taken into account and .<= of them claim that sometimes the management takes their demands into account.

Ta5l) /.#2

>; M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:) 0( )!) %r.:i3)3 5y & ) (.!%a"y (r)a&) a"y i"0%ira&i." &. 1.r,

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

.4

-<

Go

Bometimes

+H

Total

34

+44

>M) Institute of Technology" *angalore

McDowell and co ltd

5!, 4!, -!, "!, +!, %!, $!, #!, !, 2es 3o 'ometimes

CHART/.#2
INTERPRETATION< ?rom the above" we can see that -<= of the respondents have the opinion that the incentive scheme provided by the company creates inspiration to work" -= of them oppose it and +H= of them have the opinion that the incentive scheme provided by the company sometimes creates inspiration.

Ta5l) /.#4

>H M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) i"()"&i:) 0( )!) %r.:i3)3 5y & ) (.!%a"y (r)a&) a"y i"0%ira&i." &. 1.r,

9eneral / staff category

)esponses

Go of )espondents

= Ff )espondents

Kes

++

<<

Go

54

Bometimes

<

5<

Total

34

+44

>> M) Institute of Technology" *angalore

McDowell and co ltd

-!, "!, +!, %!, $!, #!, !, 2es 3o 'ometimes

CHART/.#4
INTERPRETATION< ?rom the above" we can see that <<= of the respondents have the opinion that the incentive scheme provided by the company creates inspiration to work" 54= of them oppose it and 5<= of them have the opinion that the incentive scheme provided by the company sometimes creates inspiration.

Ta5l) /.#C

+44 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 1 )" 1.r,i"- &. !))& a &ar-)& $0) &. ")-l)(& & ) A$ali&y .; a %r.3$(&

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

Go

.;

>4

Bometimes

+4

Total

34

+44

+4+ M) Institute of Technology" *angalore

McDowell and co ltd

6!, 5!, 4!, -!, "!, +!, %!, $!, #!, !, 2es 3o 'ometimes

CHART/.#C
INTERPRETATION< ?rom the above" we can see that >4= of the respondents have the opinion that they never used to neglect the 1uality of product while working to meet a target"+4= of them have the opinion that they sometimes used to neglect the 1uality of the product..

Ta5l)/. #D

+45 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) %ai3 1i& a %.r&i." .; & ) %r.;i& )ar")3 5y & ) (.!%a"y

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

+-

3.

Go

+<

.-

Bometimes

54

Total

34

+44

+4. M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#D

INTERPRETATION< ?rom the above" we can see that 3.= of the respondents have the opinion that they are paid a portion of profit earned by the company and .-= of them have opposed it and 54= of the respondents have the opinion that they are paid sometimes a portion of profit earned by the company.

Ta5l) /.#E Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) %ai3 1i& a %.r&i." .; & ) %r.;i& )ar")3 5y & ) (.!%a"y
+43 M) Institute of Technology" *angalore

McDowell and co ltd

9eneral /staff ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

.4

Go

+4

<4

Bometimes

54

Total

54

+44

+4< M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.#E

INTERPRETATION< ?rom the above" we can see that .4= of the respondents have the opinion that they are paid a portion of profit earned by the company and <4= of them have opposed it and 54= of the respondents have the opinion that they are paid sometimes a portion of profit earned by the company.

Ta5l)/.*F Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) 0a&i0;i)3 1i& & ) i"()"&i:)0 0( )!) .;;)r)3 5y & ) (.!%a"y
+4; M) Institute of Technology" *angalore

McDowell and co ltd

*ottlery ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

..

H.

Go

<

Bometimes

<

+5

Total

54

+44

+4M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.*F
INTERPRETATION< ?rom the above" we can see that H.= of the respondents have the opinion that they are satisfied with the incentive offered by the company and <= of them are dissatisfied and +5= of them have the opinion that they are satisfied sometimes by the incentive scheme offered by the company

Ta5l)/. *1

+4H M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- 1 )& )r & ) )!%l.y))0 ar) 0a&i0;i)3 1i& & ) i"()"&i:)0 0( )!) .;;)r)3 5y & ) (.!%a"y

9eneral /staff ,mployees

)esponses

Go of )espondents

= Ff )espondents

Kes

+;

H4

Go

+4

Bometimes

+4

Total

54

+44

+4> M) Institute of Technology" *angalore

McDowell and co ltd

2es 3o 'ometimes

CHART/.*1
INTERPRETATION< ?rom the above" we can see that H4= of the respondents have the opinion that they are satisfied with the incentive offered by the company and +4= of them are dissatisfied and +4= of them have the opinion that they are satisfied sometimes by the incentive scheme offered by the company

Ta5l) /.*#
++4 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- & ) !."& ly %r.3$(&i." a"3 !."& ly i"()"&i:)0 %ai3 &. 5.&&l)ry )!%l.y))0

Month

Incentive paid Cin )sD

%roduction Cin no. of casesD

#pril - 5443 May-5443 June - 5443 July -5443 #ugust -5443 Beptember-5443 Fctober-5443 Govember-5443 December-5443 January-544< ?ebruary-544< March- 544< #pril-544< May-544< June-544< July-544<

.>H5-+ 34;.>; 34-5H+ 3+3.;35+4H. 3.-<>5 3<H.>; 3;+.-3 3<.;-< 3;53;> 3>.35; <+..3+ <<3+>> ;4-4H;3H.5> ;<<H.H

>4+-. >+4>>++H. >.H+; ><>5. >>+-++>;-< +.4++H +5>H-< +.+;<5 +.5>H< +.H<-5 +34+5+3.H-< +<4+>H +<4<3-

+++ M) Institute of Technology" *angalore

McDowell and co ltd 6!!!!! 5!!!!! 4!!!!! -!!!!! "!!!!! +!!!!! %!!!!! $!!!!! #!!!!! ! 0pr-!+ 8un-!+ 0ug-!+ 'ep-!+ Oct-!+ 3ov-!+ (ec-!+ 8an-!" e1-!" 0pr-!" May-!+ Mar-!" May-!" 8un-!" 8ul-!+ 8ul-!" 'eries$ 'eries#

CHART/.*#
INTERPRETATION< ?rom the above" we can see that there is a gradual increase in production and incentive paid.

Ta5l) /.**
++5 M) Institute of Technology" *angalore

McDowell and co ltd

Ta5l) 0 .1i"- & ) !."& ly %r.3$(&i." a"3 !."& ly i"()"&i:)0 %ai3 &. -)")ral 0&a;; )!%l.y))0

Month #pril - 5443 May-5443 June - 5443 July -5443 #ugust -5443 Beptember-5443 Fctober-5443 Govember-5443 December-5443 January-544< ?ebruary-544< March- 544< #pril-544< May-544< June-544< July-544<

Incentive paid Cin )sD +5-<3. +.>H-+344<. +3>>-; +<>4H5 +;H><3 +H.->< +H<>H+--H.5 +H;>.5 544+;> 5+4;H; 553<3+5<4;<+ 5;;3H5 5-4+>.

%roduction Cin no. of casesD >4+-. >+4>>++H. >.H+; ><>5. >>+-++>;-< +.4++H +5>H-< +.+;<5 +.5>H< +.H<-5 +34+5+3.H-< +<4+>H +<4<3-

++. M) Institute of Technology" *angalore

McDowell and co ltd

#-!!!!! #+!!!!! #$!!!!! #!!!!!! 5!!!!! -!!!!! +!!!!! $!!!!! ! 8un-!+ 0ug-!+ 'ep-!+ Oct-!+ 3ov-!+ (ec-!+ 8an-!" e1-!" May-!+ Mar-!" May-!" 8un-!" 0pr-!+ 8ul-!+ 0pr-!" 8ul-!" 'eries$ 'eries#

CHART/.**
INTERPRETATION< ?rom the above" we can see that there is a gradual increase in production and incentive paid.

FINDIN$S
++3 M) Institute of Technology" *angalore

McDowell and co ltd

1.#OTTLERY EMPLOYEES
Per*en+age ana2/(i(

+. Ma0ority of the employees are secondary educated and<= of them are postgraduates. 5. More than 1uarters of employees are between the ages of 34- <4. .. -H= of the employees are of the opinion that they are paid ade1uately for the 0ob they perform. 3. Ma0ority of the employees find that the incentives provided by the company assist their needs and -= of them says that incentives do not assist their needs. <. <4= of the employees are of the opinion that management creates no ine1uality while incentives are determined and 5.= of them find that ine1uality is created. ;. Ma0ority of employees are of the opinion that the incentive provided the link with the work they perform and +.= of them are of the opinion that it is not so. -. H4= of the employees claim that trade unions play a role in incentive determination and a minority of employees is of the opinion that trade unions have no part in incentive determination. H. #bout ;.= of the employees are of the opinion that when compared to previous production bonus system" present incentive scheme is very good and +<= of the employees find it satisfactory and no one claims it is to be very bad one. >. Ma0ority of employees are of the opinion that they are paid ade1uately for the over time work performed. +4. ;.= of the respondents are of the opinion that incentive offered by the company helps in improving industrial relations. ++. <4= of the employees claim that the management takes in to account their demands while determining the incentives and .H= of the employees claim that their demands are not taken in to account.

++< M) Institute of Technology" *angalore

McDowell and co ltd +5. Incentive scheme provided by the company creates inspiration to the work as responded by -<= of the employees and -= of employees are of the opposite opinion. +.. >4= of the employees never use to neglect the 1uality of product while working to meet a target. +3. 3.= of the employees view that they are paid a portion of profit earned by the company and .-= views that they are not paid so. +<. Ma0ority of the employees are satisfied with the incentive offered by the company and <= of them are dissatisfied. +;. # gradual increase in the production and incentive paid can inferred

++; M) Institute of Technology" *angalore

McDowell and co ltd

2. $ENER L ST FF C TE$ORY

Per*en+age ana2/(i( +. Ma0ority of them are graduates and <= of them are primary educated 5. 3<= of the respondents are between the age of 34- <4 and 34= of them are between .4-34 years of ages. .. Most of the employees claim that they are paid ade1uately for the 0ob they perform and +4 = are of opposite opinion. 3. Ma0ority of the employees find that the incentives provided by the company assist their needs and +4= of them says that incentives does not assist their needs. <. <4= of the employees are of the opinion that management creates no ine1uality while incentives are determined and 34= of them find that ine1uality is created. ;. Ma0ority of employees are of the opinion that the incentive provided the link with the work they perform and .4= of them are of the opinion that it is not so. -. -4= of the employees claim that trade unions play a role in incentive determination and a minority of employees is of the opinion that trade unions have no part in incentive determination. H. #bout 34= of the employees are of the opinion that when compared to previous production bonus system" present incentive scheme is good and .4 = of the employees find it satisfactory and no one claims it is to be very bad one. >. Ma0ority of employees are of the opinion that they are paid ade1uately for the overtime work performed and 54 = have opposite opinion. +4. -<= of the respondents are of the opinion that incentive offered by the company helps in improving industrial relations. ++. <4= of the employees claim that the management takes in to account their demands while determining the incentives and .<= of the employees claim that their demands are not taken in to account.

++M) Institute of Technology" *angalore

McDowell and co ltd +5. Incentive scheme provided by the company creates inspiration to the work as responded by <<= of the employees and 54= of employees are of the opposite opinion. +.. Fnly .4 = of the employees view that they are paid a portion of profit earned by the company and <4= views that they are not paid so. +3. Ma0ority of the employees are satisfied with the incentive offered by the company and +4== of them are dissatisfied. +<. # gradual increase in the production and incentive paid can inferred

++H M) Institute of Technology" *angalore

McDowell and co ltd

CONCLUSIONS
The study on &,ffectiveness of incentives scheme offered' in McDowell and undertaken to find out the various impacts of incentive offered. The study reveals that +. The effectiveness of incentive scheme in McDowell & o is highly satisfactory" due in consideration with the bottlery employees and general employees because ma0ority of employees find that the incentives provided by the company assist their needs and the management does not differentiation. 5. It has been found that proper appropriate incentive scheme have led to betterment of industrial relation. Incentive has proved to be a motivating factor in increasing the efficiency level. .. It helps in reducing the absenteeism level of employees because the company is providing the attendance bonus to the permanent workmen with the ob0ective of improving attendance habits. 3. # successful incentive programme helps to increase the profit and also inspire staff loyalty and raise morale. o.!TD was

++> M) Institute of Technology" *angalore

McDowell and co ltd

SU$$ESTIONS

ND RECOMMEND TIONS

McDowell and o !TD is professionally managed company. The study reveals that ma0ority of the employees are satisfied with the present production incentive scheme offered by the company. The yearly production itself shows the successful implementation of the incentive scheme. ?ollowing are the some recommendations" which are considered to be beneficiary to increase the effectiveness of the incentive scheme. +. The company should give a portion of the profit earned to the employees. It will increase their interest in work and try to ma:imize the profit. 5. The suggestion and recommendation regarding incentive determination" given by the workers should be taken into consideration if it is worthy. 3. The workers should be provided with enough fle:ibility and freedom in their 0ob. It will reduce the stress of employees. <. The company can take steps to introduce a suggestion system which is useful device of communication with its employees. )ewards could also be offered for suggestions which results in greater productivity and efficiency. ;. ompany can take steps to recruit candidate from outside the organization. ?resh recruitment can provide new ideas in production process and can improve the production incentive scheme.

+54 M) Institute of Technology" *angalore

McDowell and co ltd

BIBLIOGRAPHY

ORGANIGATIONAL BEHAVIOR ASH6ATHAPPA 'Hi!alaya P$5li0 i"- H.$0)? 2& E3i&i.". ORGANIGATIONAL BEHAVIOR STEPHEN ROBBINS ' Pr)"&i() Hall .; I"3ia RESEARCH METHODOLOGY +OTHARI C.R N)1 A-) P$5li(a&i."0 P:& L&3. N)1 D)l i Fi;& E3i&i." 6EBSITES< 111.(l$5!(3.1)ll.(.! 111.-..-l).(.!

COMPANY =OURNALS 7 MAGAGINES

ANNUAL REPORTS

+5+ M) Institute of Technology" *angalore

McDowell and co ltd

3ue(+ionnaire )or E-.2o/ee(

+. GameI 5. Be:I .. ,ducational 2ualificationI 3. #ge <. ,:perienceI ;. #verage monthly incentiveI -. #re you paid ade1uately for the 0ob you performP Kes Go Bometimes

H. Does the incentive provided by the company assist your needsP Kes Go Bometimes

>. Does the management create any ine1uality during the incentive determinationP Kes Go Bometimes

+4. Does the incentive scheme provided by the company link with the work performedP Kes Go Bometimes

++. Do trade unions play a role in determining the wages and incentiveP Kes +55 M) Institute of Technology" *angalore Go Bometimes

McDowell and co ltd

+5. Fpinion about present production incentive scheme compared with previous production bonus systems. Eery 9ood *ad 9ood Eery *ad satisfactory

+.. Does the company provide ade1uately for the overtime work performedP

Kes relationsP Kes

Go

Bometimes

+3. Does the incentive offered by the company create an d improve sound industrial Go Bometimes

+<. Does the management take the employee demand into account while determining the wages and incentivesP Kes Go Bometimes

+;. Does the incentive scheme provided by the company create any inspiration to work moreP Kes Go Bometimes

+-. 8hen working to meet the target do you use to neglect the 1uality of productP Kes Go Bometimes

+H. #re the employees provided with a portion of the profit earned by the companyP Kes Go Bometimes

+>. #re you satisfied with the incentive scheme offered by the companyP Kes Go Bometimes

+5. M) Institute of Technology" *angalore

McDowell and co ltd 54. Buggestions regarding a new incentive scheme or regarding the improvement of the present scheme. QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ Q

+53 M) Institute of Technology" *angalore