This document is an internship report submitted by Ankita Goel to Jaypee Business School in partial fulfillment of an MBA program. The report details Goel's 3-month internship at Dabur India Ltd, a leading FMCG company in India. The report provides an overview of Dabur, analyzes its industry and financial performance, and describes Goel's research project on work-life balance policies and practices at Dabur. Through surveys of Dabur employees, the research found that organizational support from colleagues was the biggest factor affecting work-life balance. However, many employees were unaware of the company's work-life balance policies. The report concludes that improving work-life balance can benefit
This document is an internship report submitted by Ankita Goel to Jaypee Business School in partial fulfillment of an MBA program. The report details Goel's 3-month internship at Dabur India Ltd, a leading FMCG company in India. The report provides an overview of Dabur, analyzes its industry and financial performance, and describes Goel's research project on work-life balance policies and practices at Dabur. Through surveys of Dabur employees, the research found that organizational support from colleagues was the biggest factor affecting work-life balance. However, many employees were unaware of the company's work-life balance policies. The report concludes that improving work-life balance can benefit
A constituent of Jaypee Institute of Information Technology
(Declared Deemed to be University u/s 3 of UGC Act) A-10, Sector 62, Noida (UP) India 201 307 www.jbs.ac.in
WORK LIFE BALANCE
Corporate Internship Report Internship Report submitted as a partial requirement for the award of the two year Master of Business Administration Programme MBA 2012-14
Start Date for Internship: 27 th April, 2013 End Date for Internship: 6 th July, 2013
Report Date: 8 th July, 2013 2 SELF-CERTIFICATE
I, Ankita Goel, hereby declare that the report entitled Work Life Balance at Dabur submitted to Jaypee Business School in partial fulfillment of the requirements of the award of the degree of Masters in Business Administration is a record of original work done during my period of internship with Dabur India Ltd. under the guidance of Mr. P.awan Ponia.
Ankita Goel
S
ACKNOWLEDGEMENT
Completing the pioject woik is nevei one-man effoit. It is often the iesult of valuable contiibutions of a numbei of inuiviuuals in a uiiect oi inuiiect mannei that helps in shaping anu achieving stateu objectives.
This pioject iepoit beais the impiint of those who hau ienueieu theii wholeheaiteu suppoit anu encouiagement without whose help this effoit of mine woulu be in vain.
I woulu like to give this note foi !"#$%& ())%*$+," -+#+."& -&/ 0+1+# 0%#$+ my pioject guiue anu mentoi, as he was the souice foi my motivation in piessing ciicumstances to complete this pioject anu honoieu by the iesponsible bestoweu upon us. I am also giateful to -&/ (2$, !3+&2+ 45"*6,$7" $# 862+# 9")%6&*" :";+&,2"#, foi theii valuable guiuance.
I expiess my ueep sense of giatituue anu sinceie thanks to my pioject guiue 0&%</ !36=3+#.$#$ 9+,3%&" foi hei uiiections, suggestion anu infoimation pioviueu which weie of utmost impoitance foi the successful completion of the pioject.
Last but not the least; I also thank the employees of Babui Inuia Ltu. foi assisting me in the timely completion of pioject.
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4 Table of Contents
1. Executive Summary ........................................................................................................ 5 2. Introduction and Objectives ...........................................................................................6 3. Companys Profile.......................................................................................................... 11 3.1. Overview ...........................................................................................................................12 3.2. Organization Structure....................................................................................................... 13 3.3. Dabur WorldWide .......................................................................................................... 14 3.4. Dabur Products................................................................................................................15 3.5. IT Initiatives....................................................................................................................16 3.6. Future Challenges...........................................................................................................16 3.7. Vision and Mission.........................................................................................................17 3.8. Core Values.....................................................................................................................17 4. INDUSTRY ANALYSIS ................................................................................................18 4.1. Industry size and trends of Growth .................................................................................19 4.2. Competitive Analysis ......................................................................................................23 4.3. Position of the Company .................................................................................................24 4.4. Corporate Mission & Objectives .................................................................................... 27 4.5. Portfolio Analysis ............................................................................................................27 4.6. Sector & Market Segment ...............................................................................................28 5. FINANCIAL ANALYSIS ...............................................................................................30 5.1. Profitability Ratios................................................................................................................. 37 5.2. Liquidity Ratios ............................................................................................................... 41 5.3. Activity Ratios .................................................................................................................44 6. RESEARCH PROJECT .................................................................................................48 6.1. Research Methodology........................................................................................................49 6.2. Literature Review.............................................................................................................53 6.2. Work in Organization & Recent Changes..............................................................................54 6.3. Benefits of improving WLB.................................................................................................59 6.4. Universally adopted Policies............................................................................................61 6.5. WLB program at Dabur....................................................................................................65 6.6. HR at Dabur......................................................................................................................67 6.7. Analysis.............................................................................................................................69 7. CONCLUSION & RECOMMENDATIONS ................................................................ 77 8. KEY LEARNINGS .......................................................................................................... 82 9. ANNEXURES .................................................................................................................. 84 10.REFERENCES ............................................................................................................... 88
S 1. Executive Summary
Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of about Rs 6,146 Crore & Market Capitalization of over US$5 Billions. Building on a legacy of quality and experience of over 125 years, Dabur is today Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company.
Work-Life Balance is an emerging issue in todays workplace. Work-life balance is meant to articulate the desire of all individuals not just those with families or caring responsibilities but to achieve and maintain a balance between their paid work and their life outside work, whatever their life involves, from childcare and housework to leisure or self- development. The main intent/aim of doing this project is to understand the concept and various factors of Work Life Balance, which influences employees of the corporation as well as the corporation itself to a great extent. Research also quantifies the awareness level of the employees with regards to various policies providing work life balance facilities.
This report is formulated after a thorough research and is based on the survey of DIL employees. According to survey findings it can be interpreted that over half of the e amongst organizational, technological and familial factors affecting work life balance it is organizational factor (support from colleagues at work), which is affecting the work life, balance the most. From the survey it can be concluded that people are not aware about companys policies providing work life balance benefits. More young people are insisting on achieving work-life balance, more women are entering the workplace and organization is going to need to find ways of retaining older workers with valuable experience. Work-Life Balance is a much bigger and further-reaching issue than many organizations and individuals may yet have realized. The smartest and most forward-looking organizations will see that by putting work-life balance at the heart of their cultures and their strategic plans they will not only br satisfying employees and creating more equitable workplaces, but increasing their productivity and responding competitively to significant changes, such as our growing 24/7 lifestyle.
6
INTRODUCTION AND OBJECTIVES
7 2. INTRODUCTION
In response to shifts in the labor market and the changing nature of work, work-life balance is now at the top of the agenda of business. While work-life balance traditionally focused on family-friendly workplaces essentially concerned with enabling mothers to balance work and childcare responsibilities there is increasing recognition from organizations that work- life balance is about more than families, and are instead helping employees to have access to working arrangements that are compatible with their other responsibilities, lifestyle and work. It is also recognized that work-life balance can lead indirectly to productivity gains through increased retention and helps organizations to respond to customer needs more effectively.
While work-life balance is an increasingly popular term, there is no clear consensus on what it means, although most definitions do include the concepts of flexibility, juggling and sustainability Work-life balance is most frequently used to describe the equilibrium between responsibilities at work and responsibilities outside paid work; having a work-life balance means that this equilibrium is in the right position for the individual concerned. For some people it means spending more time in paid work and less time at home, while for others it means ensuring that paid work does not encroach on time needed for other responsibilities. Of course, there is a tension here as the term implies that work and life are and should be separate, whereas for many people the distinction between the two is somewhat blurred. Furthermore, balance and imbalance varies for different people at different times of their lives, making the notion of a single definition of work-life balance unrealistic. This is compounded by differences in socio-economic circumstances: for those in low-paid work, longer hours may be a financial necessity. With this in mind, work-life balance can be defined as having sufficient control and autonomy over where, when and how you work to fulfill your responsibilities inside and outside paid work.
The five key drivers of this transformation in the world of work are:
! MARKETS: more competition, increased demand for customized; individualized products using latest technology; more emphasis on services, knowledge and relationships. 8
! LABOUR MARKETS: changing demographics (more women, older workers, more diversity); changing career patterns, skill needs and employee expectations.
! REGULATION: Regulatory standards require organisations to work in certain ways; employment legislation has changed (e.g. maternity leave etc.).
! WORK ORGANISATION: Technology enables different ways of working where, how and when; organisations have more complex matrix/network structures; more complex supply chains; more and more rapid restructuring/reorganization.
! EXPECTATIONS: changing views about the importance of paid and unpaid work, the boundaries between paid work and life and the importance of flexibility.
9
CHANGING MODEL OF WORK
Markets Greater competition.
Demand for customized and individualized products, using latest technology on a 24/7 basis. More emphasis on services, knowledge assets and relationship
Work Organization
Technology enables different ways of working how, where and when More fragmented value chains, alliances, and complex matrix structures Outsourcing
Expectations
Changing views about importance of paid and unpaid work and boundaries between work and life Labour Market
Demographics (ageing, more women in paid work, greater diversity of needs) Changing career patterns, skills needs psychological contracts
Regulations
Regulatory standards require organizations to work in certain way Employment legislation Transport Childcare 1u OBJECTIVE OF THE STUDY
The basic objective of the piesent stuuy is to C!,6DE ,3" 1%&? B$<" =+B+#" +, :+=6& F#D$+ 07,/ G,DH Following funuamental objective have been iuentifieu as the sub- objectives of the stuuy:-
" To understand the roles and responsibilities of employees at work and home.
" To find out the factors influencing work life balance of the employees. " To find out the various policies/facilities which help the employees to balance their work life " To study the perception about work-life balance of employees in organization.
Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of over Rs 6,146 Crore & Market Capitalization of US $5 Billion. Building on a legacy of quality and experience of over 127 years, Dabur is today Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets. Dabur's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 30% of the total turnover.. The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines company. Dabur India Ltd has come a long way today to become 1S one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation. 3.2 ORGANIZATION HIERARCHY STRUCTURE
Dabur Dabur India Ltd India Ltd. . Corporate Office Corporate Office Chairman Chairman ( (Vivek Vivek C C Burman Burman) ) Executive Director (Operations) Executive Director (Operations) Unit Heads Unit Heads Chief Executive Officer Sunil Duggal Heads (Marketing) Heads (Marketing) Regional Managers) Regional Managers) Branch Manager Branch Manager Marketing Executives Marketing Executives Customer Support Customer Support Officers Officers Assistants Assistants Head Head (Finance & Commercial) (Finance & Commercial) Manager (Accounts) Manager (Accounts) Asst. Manager ( Asst. Manager (Comm Comm) ) Accounts Officer Accounts Officer Sr. Executive (Stores) Sr. Executive (Stores) Head Head (Human Resources) (Human Resources) HR Manager HR Manager HR Executive HR Executive HR Sup. HR Sup. Head Head (Quality Control) (Quality Control) Assistant Manager Assistant Manager Senior Officers Senior Officers Officers / Supervisors Officers / Supervisors Head Head (Mfg. & Shop Maintenance) (Mfg. & Shop Maintenance) Assistant Manager Assistant Manager Senior Officers Senior Officers Officers / Supervisors Officers / Supervisors Dabur Dabur India Ltd India Ltd. . Corporate Office Corporate Office Chairman Chairman ( (Vivek Vivek C C Burman Burman) ) Executive Director (Operations) Executive Director (Operations) Unit Heads Unit Heads Chief Executive Officer Sunil Duggal Heads (Marketing) Heads (Marketing) Regional Managers) Regional Managers) Branch Manager Branch Manager Marketing Executives Marketing Executives Customer Support Customer Support Officers Officers Assistants Assistants Head Head (Finance & Commercial) (Finance & Commercial) Manager (Accounts) Manager (Accounts) Asst. Manager ( Asst. Manager (Comm Comm) ) Accounts Officer Accounts Officer Sr. Executive (Stores) Sr. Executive (Stores) Head Head (Human Resources) (Human Resources) HR Manager HR Manager HR Executive HR Executive HR Sup. HR Sup. Head Head (Quality Control) (Quality Control) Assistant Manager Assistant Manager Senior Officers Senior Officers Officers / Supervisors Officers / Supervisors Head Head (Mfg. & Shop Maintenance) (Mfg. & Shop Maintenance) Assistant Manager Assistant Manager Senior Officers Senior Officers Officers / Supervisors Officers / Supervisors 14 O/O DABUR WORLWIDE
" Daburs mission of popularizing a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicines, nature based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this alternative way of life, marketing its products in more than 50 countries all over the world.
Its Products World Wide
" Offices and representatives in Europe, America and Africa " A special herbal health care and personal care range successfully selling in markets of the Middle East, Far East and several European countries. " Inroads into European and American markets that have good potential due to resurgence of the back-to-nature movement.
" In Dabur India Limited knowledge and technology are key and efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing the world. It will also cut down costs and increase profitability. Information Technology in a big way. resources which have helped the Company achieve higher levels of excellence This will help in integrating a vast distribution system spread all over India and across.
3.6 FUTURE CHALLENGES
" Forward Integration of SAP with Distributors and Stockiest. " Backward Integration of SAP with Suppliers. " Implementation of SAP HR and payroll. 17 " Dabur has established a Central Procurement & Planning Department (CPPD) to take care of all high value purchases across the company. The CPPD is housed at the Kaushambi Corporate Office (KCO) and is headed by the head- CPPD. Low value purchases are de-centralized at the manufacturing units. A Unit Purchase Heads the Purchase Department at the manufacturing units. " Dabur India Limited has also set up a cross-functional Purchase Committee to guide and oversee the purchasing function at the KCO. " To focus on customer and successfully meet their needs and requirements. " To manufacture effective personal care, ayurvedic and food products at competitive prices and improve the quality of life of common masses. " To implement system to ensure prevention of errors rather than detection of errors. " To ensure global competitiveness by striving to achieve Current and Good Manufacturing Practices (CGMP)
3.7 VISION AND MISSION Founding Thought: What is that life worth which cannot bring comfort to others?
Vision: Dedicated to the health and well being of every household.
Mission: To become a leading nature-based health and family care Products Company.
3.8 CORE VALUES
Ownership : Accept personal responsibility, and accountability to meet business needs.
Passion for Winning: Leaders in the area of responsibility, with a deep commitment to deliver results. Determined to be the best at doing what matters most.
People Development: People are the most important asset. Add value through result driven training, and we encourage & reward excellence.
Customer Focus : Superior understanding of consumer needs and develop products to fulfill them better.
Team Work : Work together on the principle of mutual trust & transparency in a boundary- less organization. Intellectually honest in advocating proposals, including recognizing risks.
18
INDUSTRY ANALYSIS
19 4. INDIAN FMCG INDUSTRY
4.1 INDUSTRY SIZE AND GROWTH TRENDS
The burgeoning middle class Indian population, as well as the rural sector, present a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labor makes it an ideal destination for this sector. There is also intense competition between the organized and unorganized segments and the fight to keep operational costs low.
Major Highlights
51% FDI has been allowed in multibrand retail in India. Massive investments are expected in food processing, storage facilities and efficient logistics. The sector which will benefit the most from this will be the FMCG sector.
Last year, India had a bumper kharif crop. Historically, it has been observed that India's agricultural output and sales volumes of FMCG companies are highly correlated. Thus a good performance can be expected from this sector this fiscal.
Over the past decade, there has been a qualitative shift in the consumer preferences in India. Supported by rise in per capita income, a rise in demand for branded clothes, high end accessories, and value added personal care products has been witnessed. Given the high growth phase that the economy is going through, the trend is expected to continue.
Organised retail as a segment in the FMCG industry has been growing rapidly over the past few years. Large scale procurement has enabled the organised retail players to source their products directly from the manufacturers. This has led to eliminating the middlemen, thereby reducing the overall price of the product supplemented by increasing demand for the products. The trend is expected to continue and organised retail players will see higher growth in the future.
Growth Drivers :
FMCG is one industry whose sole growth driver is dependent on the economic prosperity of its consumers. In the past decade and a half, India has witnessed a high economic growth. The per capita income has increased significantly and so has the disposable income in the hands of the people.
2u
Not only in the urban areas but also in the rural areas, people have become prosperous. In fact 40% of the demand for FMCG comes from the rural India. In the recent past, the semi- urban and the rural areas have been the major contributors to the growth of this sector.
The high growth phase is likely to continue in the coming times and the prospect of the industry is very bright.
Strategic concerns for the Industry-
Compared to the developed nations, the logistics facilities in India are of very low standard.A significant amount of goods get destroyed in transportation and storage. The distribution channels too are not well organised. Large numbers of small localised vendors have to be engaged, leading to problems in co-ordinating between them and managing them.
There is heavy competition among the existing players in the industry. The entry and exit barriers are very low. Moreover, a large number of players operate at the local level and they have a niche of their own. Example: Kerosram Til Oil is a dominating brand in its segment but it sells its products only in Bihar, Orissa and Assam. There are a large number of such companies operating in the unorganised market, each with a differentiated product of its own and commanding its own loyalty. Not only do they compete amongst themselves but also compete with the large organised players.
A large number of players in the unorganised sector are known to be notorious for making counterfeits. These small manufacturers eat into the margins of large companies and are often very difficult to track.
21 Structure of the market - The FMCG market in India can be broadly divided into three segments:
1. Food and beverages
The food and beverages segment is the largest in the FMCG industry and comprises nearly 50% of the total market share. The following table contains the historical growth rates of some of the most important divisions of the food processing industry. (in %) 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Fruit pulp -22.4 87 -2 5 35.1 30.4 Fruit Juices 26.6 20.9 41 46.6 16.8 26 Instant food Mixes 24.3 30.8 19.4 20.8 10.6 17.9 Mineral water 21 29.4 6.9 28.3 19.9 15.4 Chocolate 28.4 8.9 24.2 11.3 13.7 13.3 Malted Foods 6.1 8.5 -36.8 -8.8 8.4 6.4 Butter -6.2 4.8 3.4 -22.7 -4.7 0.1 Biscuits 14.1 -0.9 29.2 10.4 -1.4 -1.6 Frozen meat -39.6 -12.9 76.8 27.4 -21.8 -1.7 Source: The economic survey 2012
2. Personal Care-
Personal care segment is the second largest segment and constitutes nearly 20% of the total industry size. It consists of toiletries, hair care products, oral care products and cosmetics. Some of the major brands like Lux, Lifebuoy, Parachute and Close Up belong to this category. This segment is the highest advertisement spender in the industry and also commands the highest brand loyalty in the FMCG sector.
3. Homecare
In the home care segment there are detergents, mosquito repellents, deodorizers and other household items. This is the smallest segment and constitutes about 10% of the industry size.
4. Others
The segment consists of miscellaneous items such as baby diapers, table napkins etc. Though they cannot be categorised into any of the above categories, together they make up rest of the market share.
22 PEST Analysis
2S
4.2 COMPETITION ANALYSIS
Competition Name Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets HUL 131,770.25 25,810.21 3,796.67 3,512.93 Godrej Consumer 27,626.04 3,581.02 510.94 2,761.43 Dabur India 27,364.08 4,349.39 590.98 1,836.36 Colgate 18,874.44 3,163.81 496.75 489.61 Marico 13,514.55 3,407.10 429.09 1,677.27 Emami 10,879.69 1,627.09 323.77 804.23 Godrej Ind 10,688.44 1,464.63 96.74 1,739.27 P and G 9,563.42 1,297.41 181.29 697.06 Gillette India 7,317.17 1,232.90 75.73 619.25 Bajaj Corp 3,700.78 606.72 167.38 427.86 Jyothy Labs 2,995.48 1,018.74 44.04 1,226.42 Amar Remedies 18.05 671.33 44.62 626.58 JHS Svendgaard 16.02 56.06 -4.21 159.53 GKB Ophthalmics 7.52 32.21 -1.19 30.44
Dabur aims to become a leading nature-based health and family care Products Company.
Dabur seeks to contribute to society through its herbal and ayurvedic products by constantly anticipating market needs to offer new and innovative products that create real and lasting value for our customers. Dabur is constantly anticipating market needs and working to contribute to society by developing herbal and ayurvedic products on a global scale and striving to offer innovative products that create new value for customers.
4.5 DABUR PORTFOLIO ANALYSIS
Dabur India Parent Company Dabur India Limited Category Consumer Products, Food & Beverages Sector FMCG Tagline/ Slogan Celebrate Life USP World's largest Ayurvedic and Natural Health Care Company STP Segment Products and services for daily needs Target Group Every household especially the middle class Positioning Dabur products are a reason for people to celebrate life Product Portfolio Brands
Food & Beverages 1. Real Juice 2. Chyawanprash 3. Dabur Honey 4. Hajmola 5. Glucose-D
28 SWOT Analysis Strength 1. Products present in over 60 c0untries and distribution through 5000 distributors and 2.8 millin outlets 2. Strong Brand Image and Product Development Strength 3. Strong Distribution Network and an Extensive Supply Chain 4. It has welfare activities in health care, education and other socio-economic activities 5. Has focus markets in GCC, Egypt, Nigeria, US, Nepal etc Weakness 1. Fake products sold under the name of their brands 2. Dabur products has stiff competition from big domestic players and international brands Opportunity 1. Tap rural markets and increase penetration in urban areas 2.Mergers and acquisitions to strengthen the brand 3.Increasing purchasing power of people thereby increasing demand Threats 1. Intense and increasing competition amongst other FMCG companies 2.FDI in retail thereby allowing international brands 3. Competition from unbranded and local products Competition Competitors 1. Marico 2. L'Oral 3. Nirma Ltd 4. HUL 5. Colgate-Palmolive 6. Procter and Gamble 7. ITC
4.6 SECTOR AND MARKET SEGMENT
DEMOGRAPHIC VARIABLES ! Dabur India Ltd's manufacturing activities spanning various consumer products categories are carried out in 17 factories spread across India and abroad. ! Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal). ! Dabur has been in the forefront of popularizing this alternative way of life, marketing its products in more than 60 countries all over the world.
29 DABURS PRODUCT SEGMENTATION : Presence in FMCG Categories FY12 Category Position Market Share Key Brands Hair Care 3 12% Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos Oral Care 3 13% Red toothpaste, Babool, Meswak, Red toothpowder Ayurvedic Tonics 1 67% Dabur Chyawanprash Digestives 1 56% Hajmola Fruit Juices 1 52% Real Fruit Juices, Real Activ Honey 1 50% Dabur Honey Glucose 2 25% Dabur Glucose Skin Care 1 50% Fem Air Freshner 1 40% Odonil Source: Dabur Corporate Profile August 2012
Su
FINANCIAL ANALYSIS
S1 Balance sheet of Dabur India (Rs crore)
Mar12 Mar ' 11
Mar'10 Sources of funds Owner's fund Equity share capital 174.21 174.07 86.76 Share application money - - 0.14 Preference share capital - - - Reserves & surplus 1,128.28 927.09 662.48 Loan funds Secured loans 19.12 17.57 24.27 Unsecured loans 254.15 235.78 81.80 Total 1,575.76 1,354.51 855.45 Uses of funds Fixed assets Gross block 883.23 766.88 687.23 Less : revaluation reserve 0.78 - - Less : accumulated depreciation 297.90 269.32 236.28 Net block 584.55 497.56 450.95 Capital work-in-progress 25.12 11.92 23.31 Investments 552.72 519.23 348.51 Net current assets Current assets, loans & advances 1,647.64 1,317.26 941.77 Less : current liabilities & provisions 1,288.10 1,074.41 911.83 Total net current assets 359.54 242.85 29.94 Miscellaneous expenses not written 53.83 82.95 2.74 Total 1,575.76 1,354.51 855.45 Notes: Book value of unquoted investments 342.49 101.60 98.60 Market value of quoted investments 210.23 421.02 250.52 Contingent liabilities 1,337.82 1,075.89 173.48 Number of equity sharesoutstanding (Lacs) 17421.01 17407.24 8675.8 6 S2
Profit loss account of Dabur India
(Rs crores)
Mar ' 12 Mar ' 11 Mar ' 10 Income Operating income 3,759.33 3,274.43 2,867.42 Expenses Material consumed 2,033.54 1,662.37 1,384.29 Manufacturing expenses 71.63 67.60 58.17 Personnel expenses 243.36 230.84 212.34 Selling expenses 505.57 487.61 474.79 Adminstrative expenses 245.81 201.65 187.90 Expenses capitalised - - - Cost of sales 3,099.91 2,650.07 2,317.49 Operating profit 659.42 624.36 549.93 Other recurring income 44.81 28.17 14.85 Adjusted PBDIT 704.23 652.53 564.78 Financial expenses 13.40 12.93 13.28 Depreciation 36.81 37.73 31.91 Other write offs 29.07 16.60 5.66 Adjusted PBT 624.95 585.27 513.93 Tax charges 123.79 124.85 93.70 Adjusted PAT 501.16 460.42 420.23 Non recurring items -37.92 10.99 13.10 Other non cash adjustments - 0.25 -0.19 Reported net profit 463.24 471.66 433.14 Earnigs before appropriation 1,177.46 998.57 862.08 Equity dividend 226.47 200.19 173.60 Preference dividend - - - Dividend tax 36.74 32.82 29.50 Retained earnings 914.25 765.56 658.98 SS
Cash flow of Dabur India
(Rs crore) Mar ' 12 Mar ' 11 Mar ' 10 Profit before tax 631.92 596.26 527.03 Net cashflow-operating activity 520.12 338.61 481.49 Net cash used in investing activity -188.58 -222.22 -267.54 Netcash used in fin. activity -232.66 -87.89 -201.88 Net inc/dec in cash and equivlnt 98.88 28.50 12.07 Cash and equivalnt begin of year 192.41 163.91 151.84 Cash and equivalnt end of year 291.29 192.41 163.91
S4
Balance sheet of Britannia Industries (Rs crore) Mar ' 12 Mar ' 11 Mar ' 10 Sources of funds Owner's fund Equity share capital 23.89 23.89 23.89 Share application money - - - Preference share capital - - - Reserves & surplus 496.15 427.41 372.36 Loan funds Secured loans 0.58 407.76 408.10 Unsecured loans 27.57 23.68 21.51 Total 548.19 882.75 825.87 Uses of funds Fixed assets Gross block 673.06 593.56 547.83 Less : revaluation reserve - - - Less : accumulated depreciation 293.97 289.86 266.33 Net block 379.09 303.70 281.50 Capital work-in-progress 79.73 11.69 11.64 Investments 428.94 545.00 490.64 Net current assets Current assets, loans & advances 784.58 648.32 552.19 Less : current liabilities & provisions 1,124.15 625.97 510.10 Total net current assets -339.57 22.36 42.09 Miscellaneous expenses not written - - - Total 548.19 882.75 825.87 Notes: Book value of unquoted investments 291.36 407.25 566.76 Market value of quoted investments 143.39 143.42 4.29 Contingent liabilities 71.71 359.63 318.67 Number of equity sharesoutstanding (Lacs) 1194.51 1194.51 238.90
SS
Profit loss account of Britannia Industries (Rs crore) Mar ' 12 Mar ' 11 Mar ' 10 Income Operating income 4,964.51 4,217.53 3,401.31 Expenses Material consumed 3,185.81 2,771.01 2,176.29 Manufacturing expenses 466.22 370.42 327.24 Personnel expenses 145.87 118.48 99.52 Selling expenses - 593.16 510.36 Adminstrative expenses 894.60 134.10 83.84 Expenses capitalised - - - Cost of sales 4,692.50 3,987.17 3,197.25 Operating profit 272.01 230.37 204.06 Other recurring income 58.53 26.67 37.26 Adjusted PBDIT 330.54 257.04 241.32 Financial expenses 38.07 40.08 8.21 Depreciation 47.32 44.59 37.54 Other write offs - - - Adjusted PBT 245.15 172.37 195.57 Tax charges 65.63 40.50 4.27 Adjusted PAT 179.52 131.87 191.31 Non recurring items - 21.10 -81.45 Other non cash adjustments 7.22 -7.68 6.65 Reported net profit 186.74 145.29 116.51 Earnigs before appropriation 372.03 290.06 226.11 Equity dividend 101.53 77.64 59.73 Preference dividend - - - Dividend tax 16.47 12.60 9.92 Retained earnings 254.03 199.82 156.46
S6
Cash flow of Britannia Industries (Rs crore) Mar ' 12 Mar ' 11 Mar ' 10 Profit before tax 252.37 198.14 120.78 Net cashflow-operating activity 210.66 243.15 235.29 Net cash used in investing activity -51.56 -156.42 -109.69 Netcash used in fin. activity -128.55 -107.39 -184.05 Net inc/dec in cash and equivlnt 30.55 -20.66 -58.45 Cash and equivalnt begin of year -4.36 20.17 338.09 Cash and equivalnt end of year 26.19 -0.49 279.64
S7
ANALYSIS AND FINDINGS
In order to analyze profitability , liquidity and Activity of the selected FMCG companies, various accounting ratios have been used. The study has been undertaken for a period of 3 years from 2009-10 to 2011-12.
5.1 PROFITABILITY ANALYSIS
Profitability analysis shows how efficiently the firm is applying its resources to get the maximum returns. In the present study, the following ratios have been selected for analyzing profitability of Britannia Industries and Dabur India.
" EARNING RATIO OR NET PROFIT MARGIN (NPM) = (NET PROFIT / SALES) X100 Net profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. " RETURN ON ASSETS RATIO (ROA) OR DU PONT RATIO = (NET INCOME) / (TOTAL ASSETS) X 100 ROA is an indicator of how profitable a company is relative to its total assets. It gives an idea as to how efficient management is at using its assets to generate earnings. " RETURN ON NETWORTH OR RETURN ON EQUITY (ROE) = (NET INCOME) / (SHAREHOLDERS EQUITY) X 100 The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. " RETURN ON CAPITAL EMPLOYED OR RETURN ON INVESTMENT (ROI) = (NET OPERATING PROFIT) / (CAPITAL EMPLOYED)
This ratio measures profiatability of total capital employed in the business. It is an important tool for making investment decisions. Higher return is favourable as it reveals more profit.
There was increase in net profit margin of Britannia Industries in 2011-12 (table 1.2) from last two financial years i.e. 3.71% and in 2009-10 it was 3.38%, which was the lowest in last 3 years, indicating that the company is doing well . Consequently, return on net worth was also affected which also recorded its lowest 29.40% in 2009-10, during last 3 years. However, the return on capital employed of Britannia industries is much lower than Dabur India.
On the other hand, it has been found that in spite of global economic recession in recent past, Dabur India (table 1.1) sustained a good NPM, RONW and ROCE, better than Britannia Industries. But the NPM of Dabur India had fallen down in 2011- 12 to 12.17% from 15.03% in 2009-10 and 14.27% in 2010-2011. Even ROA, RONW, ROCE had also fallen down in 2011-12, in comparison to last 2 financial years
41
5.2 LIQUIDITY ANALYSIS
Liquidity means the ability of a firm to meet its current obligations. Adequate liquidity indicates sound financial position of a firm while insufficient liquidity reflects poor credit worthiness. The following ratios have been analyzed and interpreted to assess the liquidity position of Britannia Industries and Dabur India for the present study:
" CURRENT RATIO (CR) = CURRENT ASSETS / CURRENT LIABILITIES . A current ratio of 2:1 is considered as ideal i.e if current ratio is 2 or more it means that the concern has the ability to meet its current obligation but if the ratio is less than 2 it indicates that the concern has difficulty in meeting its current obligation. " QUICK RATIO (QR) OR ACID-TEST RATIO = CURRENT ASSETS (INVENTORIES +PREPAYMENTS)/CURRENT LIABILITIES A quick ratio of 1:1 is considered as ideal ratio. " DEBT-EQUITY RATIO (DER) = EXTERNAL EQUITIES OR DEBTS/ EQUITY CAPITAL
A debt-equity ratio of 2:1 is considered as ideal ratio.
TABLE 2.1 LIQUIDITY RATIOS OF DABUR INDIA
Year CR QR DER 2009-10 0.93 0.68 0.14 2010-11 0.99 0.78 0.23 2011-12 1.15 0.85 0.21
42
TABLE 2.2 LIQUIDITY RATIOS OF BRITANNIA INDUSTRIES
Year CR QR DER 2009-10 1.08 0.50 1.08 2010-11 1.04 0.50 0.96 2011-12 0.70 0.36 0.05
u u.S 1 1.S 2 2.S S S.S CR QR BER 2uu9-1u 2u1u-11 2u11-12 4S
INTERPRETATION:
CR of Dabur India (Table 8) varied between 0.93 and 1.15. QR was between 0.68 and 0.85, which signifies better short-term liquidity of the firm, in comparison to Britannia Industries. DER was less than one, which is good for the company.
Britannia Industries not able to maintain satisfactory CR (table 2.2). Though QR was less than one (0.36 & 0.50) for last three financial years, therefore, the ratio found to be not acceptable. The DER was below one except for 2009-10. This implies better short term and long-term liquidity position of the firm, though CR and QR need to be improved.
Thus, in order to enjoy healthy long-term liquidity condition, both Britannia Industries and Dabur India continued to keep DER below one.
u u.S 1 1.S 2 2.S S S.S CR QR BER 2uu9-1u 2u1u-11 2u11-12 44 5.3 ACTIVITY ANALYSIS
Accounting ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales. Activity ratios are used to measure the relative efficiency of a firm based on its use of its assets, leverage or other such balance sheet items. These ratios are important in determining whether a company's management is doing a good enough job of generating revenues, cash, etc. from its resources. The following ratios have been analyzed and interpreted to assess the activity position of Britannia Industries and Dabur India for the present study:
" INVENTORY TURNOVER RATIO (ITR) = COST OF GOODS SOLD / INVENTORY.
The purpose of it is to measure the liquidity of the inventory. Higher the ratio the better it is because it shows that stock is rapidly turn-over.
" DEBTORS TURNOVER RATIO (DTR) = NET SALES / DEBTORS
The pupose of it is to measure the no. of times an average account receivables are collected during the period. Higher the ratio better it is because it finds out how faster debts are being collected.
" FIXED -ASSETS TURNOVER RATIO (FATR) = NET SALES / NET FIXED ASSETS
This ratio indicates how effectively and profitably the fixed assets of a business are used. The higher is the ratio, the better is the performance. On the other hand a low ratio indicates that fixed assets are not being efficiently utilized.
" ASSETS TURNOVER RATIO (ATR) = NET SALES / TOTAL ASSETS
This ratio indicates that how effectively and profitably the total assets of business are used. The high ratio is an indicator of over trading of total assets while the low ratio reveals the ideal capacity. 4S
u 1u 2u Su 4u Su 6u 7u 8u 9u 1uu ITR BTR FATR ATR 2uu9-1u 2u1u-11 2u11-12 47 INTERPRETATION:
The inventory turnover ratio of Dabur India had fallen down from 11.31 in 2009-10 to 7.19 in 2011-12 and from 23.62 in 2011-12 to 17.62 (table 3.1). This shows that company has excess inventory, which is bad sign as it indicates poor sales. Similarly, debtor turnover ratio had fallen down from 23.62 in 2009-10 to 17.62 in 2011-12. The assets turnover ratio varied from 3.31 in 2009-10 to 2.57 in 2011-12 indicating that over trading of assets had been shifted to ideal capacity.
Though ITR had been fallen for Britannia industries from 16.68 in 2010-11 to 13.15 in 2011-12 but in comparison to Dabur India it is better that shows Britannia Industries have better sales. The fixed-asset turnover ratio and ATR of Britannia Industries is much better than Dabur India which indicates that Britannia has better overtrading of total assets in comparison to Dabur India.
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RESEARCH PROJECT
49 6. RESEARCH PROJECT
6.1 RESEARCH METHODOLOGY Primary objectives:- " To study the work life balance of employees in DABUR INDIA LIMITED. " To find out the factors influencing work life balance of the employees. " To find out the various policies/facilities which help the employees to balance their work life?
Research Design " The research design for this study employed a descriptive survey method. The target population of this study included employees at the DIL. The sample size included 64 employees of the target population. Sample size: " Sample size is 20. Data was analyzed by surveying employees from different departments. Sample design: " This part is done through discussing and analyzing with my project guide and referring to the subject regarding this topic. It was a random sampling.
CONSTRUCTION OF THE TOOL: To measure the effectiveness of QWL, questionnaire method is used. The questionnaire consists of two sections. Section 1: Collect the personal details about respondents. Section 2: Consists of 24 Questions which deal with WLB. In this study, structured questionnaire means a set of questions (statements) which is administered to the respondents.
Su ! Primary Data Collection For achieving the objectives of study, a survey was conducted. For survey, questionnaires were given to the workers at the companys production unit situated in Ghaziabad. The questionnaire consisted two sections to make the study more meaningful & so that maximum information could be collected. The first section was designed to collect the personal information about the respondents and the second section consisted of 24 Questions which deal with WLB The questionnaire was structured with open ended & close ended questions and was designed to get various factors affecting work life balance. It was designed to check the awareness level of employees on companys policies on work life balance and how do they rate them. Also satisfaction level of the employees on various work-life balance issues.
Survey respondents: Table below gives a detailed breakdown of sample profile: Gender Male Female 95% 5% Age Below 30 30-40 40-50 Above 50 10% 17% 28% 45% Number of working hours 7-8 Hours 8-9Hours 9-10hours 10-12hours >12hours 3% 60% 28% 6% 3% Number of hours spend in commutation Less than 30 minutes 1-2 hours More than 2 hours 59% 38% 3% Working spouse Yes No 6% 94% Number of children none 1 2 3 4 6% 25% 47% 16% 6% S1 Department HR Production Quality Excise Stores Packing Engineering Administration Supply chain management Purchase
6% 25% 10% 9% 9% 6% 13% 3% 3% 6%
! Secondary Data Analysis To collect the necessary data, information and facts, search of relevant material in the DIL library was done. Various books, magazines and journals related to topic of research were referred. Help of online material and resources in order to obtain the varied and diverse information as much as possible was taken. Help was asked from management at DIL for their records and files to get the required information. After carrying out the research we found that our findings were similar to what we found in the secondary data research. The questionnaire used for the research is given in attachment as annexure.
Scope of the study: The study was on work life balance in Dabur India Limited. Here the interest was in finding out if there are particular areas relating to Work-Life Balance, that cause problems and, if so, to consider what we may be able to make life easier. As the separation between work and home life has diminished, this concept has become more relevant than ever before. To study the work life balance in Indian Corporate, one of the reputated FMCG Company, Dabur India Limited was selected as the sample of study. The work culture, employees of different profiles - who maintain proper prioritizing between career and ambition on one hand, compared with pleasure, leisure, family at other hand and Employer employee relationships are some of the reasons behind the selection. S2 LIMITATIONS
! The sample size was confined to 20 executives, therefore the conclusion drawn would hold true only for this much of sample size and hence the analysis may not be appropriate if it is used for more of the sample size.
! As per the views of the personnels the schedule needs some modification as in huge organization like DIL employees with over busy schedule questionnaire was really difficult to answer.
! There is no measure to check out whether the information provided by the workers is correct or not.
In spite of the above limitations, DIL employees were very cooperative in giving company and project related details.
SS 6.2 LITERATURE REVIEW A major research theme relates the changing nature of work and workplaces, including trends such as job insecurity, work intensification and long working hours (Brannen and Moss 1998; Burchell, Ladipo et al. 2002; La Valle, Arthur et al. 2002) and the long hours culture in many occupations (Bond, Hyman et al. 2002; Crompton, Dennett et al. 2003). Although occupational and work-family stress has been addressed since the 1980s, there has been a recent resurgence of interest in stress, relating to these changes in the nature of work (Brannen and Moss 1998; Burchell, Ladipo et al. 2002; La Valle, Arthur et al. 2002; Yeandle, Wigfield et al. 2002) Flexible working arrangements including part-time working and other patterns have also attracted research interest. Given the voluntary natue of most provisions and the resistance of many employers, the focus has been on the impact of employer policies and their consequences for employer productivity in particular (Purcell, Hogarth et al. 1999; Dex and Scheibl 2002; Dex and Smith 2002). There is also a growing recognition of the limitations of employer policies without culture change in the workplace, a concern reflected in some work-family research ( Lewis 2001; Bond, Hyman et al. 2002; Yeandle, wigfield et al. 2002). Gender and especially the gender pay gap is a major focus, including its prevalence, size, causes and solutions, especially in relation to flexible working and childcare patterns (Walby and Olsen 2002). Other forms of diversity are slowly beginning to enter onto the research agenda including ethnic minority families (Rana, Kagan et al. 1998); parents with disabled children (Rana, Kagan et al. 1998; Lewis, Kagan et al. 1999) and rural families (Mauthner, McKee et al. 2001). Well-being, happiness and satisfaction have received relatively little attention in the 1980s and 1990s, when stress took centre stage. However these issues are becoming increasingly considered in recent UK literature and research (Warr 1999; Donovan and Halpern 2002; Layard 2003).
S4 6.3 WORK ORGANISATION AND RECENT CHANGES
Changes in the lifestyle combined with technological advances, have caused changes in work organization. Key trends include:
! HOW PEOPLE WORK: The last thirty years has seen the growth of more office-based work, which has changed how most people work. Changes include:
Increased use of IT More team-based working Increase in functional flexibility Some new forms of work leave
! WHERE PEOPLE WORK:
Where people work has changed somewhat but not as much had been expected. Thirty years ago, it was expected that technology would liberate people from the chains of offices, enabling them to work at home. Yet the office continues to be a central feature of peoples working lives. More home-based working Most people work in one place Greater availability of occasional home working
! WHEN PEOPLE WORK:
Working hours have changed in response to different customer and employee demands in different sectors. Some of the key changes are: SS
Average working hours are falling Monday to Friday is no longer the norm Increased flexibility in working hours Some more flexibility in formal working time arrangements
! ORGANIZATIONS RELATIONSHIPS WITH EMPLOYEES:
Changing work organisation and changing attitudes to work have also shifted the relationship between organisations and employees, with a move from an emphasis on jobs for life and collective bargaining power via trade unions to more individualized employment relationships, which in turn affects the way in which work is organized. Key trends to note are:
Decline in influence of trade unions Growth in performance management, monitoring and surveillance Growing importance of peer pressure Growing career management facilities within the organization
! ENVIRONMENT:
Over the last year in particular, climate change has come to the fore as an issue for policymakers, businesses and individual. UN Intergovernmental Panel on Climate Change (IPCC) highlight the importance of changing behavior in order to reduce carbon footprint, an issue not only for businesses operating in sectors such as oil and gas, but also for other businesses who may wish to demonstrate their green credentials to customers and employees alike. This growing emphasis on the environment is leading companies to consider different ways of working such as: S6 More home working using technology (where the job permits) to enable people to work at home more often, thus reducing the need for commuting (and potentially a car journey) and reducing the need for electricity, heating, lighting etc. within office accommodation. Increased use of video conferencing rather than requiring travel for meetings; Creating virtual organisations, such as that of Woolley and Co solicitors. They run as a virtual firm, with no offices and all lawyers, typists and support staff working from home on total flexi-time and flexi-holidays. Reducing use of paper by reorganizing the way people work. Greater flexibility: EOC research suggests that there is an unmet demand for home working, which organisations could respond to and potentially reduce energy consumption.
! TRANSPORT :
Transport has an enormous effect on workplaces, both in terms of individual choices and productivity. Although technology enables greater flexibility about where work is done than thirty years ago, many people still travel to a place of work or to meet others and exchange ideas (Jones et al, 2006). This means that the workplace is not just an abstract concept but usually a place and the ability to get to that place of work can have a significant impact on individual choices and on productivity. Transport can affect individual choices and workplace productivity for the following reasons:
Capacity of public transport: Being able to get on the train / bus that will get you to your workplace particularly at peak times. A recent Transport 2007 report identified the 10 most crowded trains, with the top ten trains all running at between 45 per cent and 88 per cent over capacity. This impacts on peoples health, well-being, and can result in them being late for work, which is detrimental to productivity. It may suggest a case for staggering start and finish times as well. S7
Road network capacity: For many workplaces, the best / only way to get to work is by car, and this is resulting in high levels of congestion in many areas, particularly cities, as well as having a detrimental impact on business productivity when people are delayed.
Reliability of public transport: If people cannot rely on public transport to get them somewhere on time (either because of over-crowding, signal problems etc.), they may resort to alternatives (such as the car, creating further congestion), may have to leave very early and experience high levels of stress at not being able to get somewhere, or may arrive late, reducing productivity and costing business money.
Timetabling of public transport: Timetables can have an enormous impact on peoples ability to get to work at a particular time. This can be a real challenge if a shift starts at a time that public transport does not serve well (either no services or poorly timed services). It also means that changing shift times needs to take into consideration whether local public transport will allow people to get to their workplace on time, otherwise workplace productivity will suffer.
Public Transport Routes: Many people, particularly in deprived areas, may struggle to get to sources of employment because there are no direct public transport routes. This reduces choices for individuals and businesses ability to have access to a wider pool of labour.
! CHILDCARE: Childcare is an enormous issue when it comes to transforming work. It has a significant impact on choices for individuals, and as a consequence can affect organizations access to skilled staff. Key issues include: S8 Cost: The cost of childcare can make it financially impossible for some households to have both parents in work: it can mean that a choice is made about one parent being in paid work, and the other staying at home. Quality: Parents want to ensure that their child has access to quality childcare. Poor quality care can have detrimental impacts upon the childs later development (having wider social implications), as well as worrying the parents and impacting on their work and home lives. Availability: It remains an ongoing issue for many parents that there are not enough places with the high quality nursery of their choice.
S9 6.4 BENEFITS OF IMPROVING WORK-LIFE BALANCE " AIDING EMPLOYEE RECRUITMENT AND RETENTION More employees may stay on in a job, return after a break or take a job with one company over another if they can match their other needs better with those of their paid work. This results in savings for the employer avoiding the cost of losing an experienced worker and recruiting someone new. Employers who support their staff in this way often gain the bonus of loyalty from those staff. " REDUCING ABSENTEEISM Many companies that have introduced family-friendly or flexible working practices have seen benefits through reductions in absenteeism. Sickness rates may fall as pressures are managed better, while employees may have better methods of dealing with work-life conflicts than taking unplanned leave. Workers (including their managers) who are healthy and not over-stressed may be more efficient. " IMPROVING THE QUALITY OF PEOPLE'S WORKING LIVES Minimizing work-life role conflict can help prevent role overload and help people have a more satisfying working life, fulfilling their potential both in paid work and outside it. Work life balance can minimize stress and fatigue at work, enabling people to have safer and healthier working lives. Workplace stress and fatigue can contribute to injuries at work and at home. Self-employed people control their own work time to some extent. Most existing information on work-life balance is targeted at those in employment relationships. However, the self-employed too may benefit from maintaining healthy work habits and developing strategies to manage work-flows.
6u " MATCHING PEOPLE WHO WOULD NOT OTHERWISE WORK WITH JOBS Parents and people with disabilities and those nearing retirement are among those who may increase their workforce participation if more flexible work arrangements are possible. Employment has positive individual and social benefits beyond the financial rewards. Employers may also benefit from a wider pool of talent to draw from particularly when skill shortages exist. There is strong demand amongst lone parents and disabled people for flexible working time arrangements. ! BENEFITING FAMILIES AND COMMUNITIES In a situation of conflict between work and family, one or other suffers. Overseas studies have found that family life can interfere with paid work, and the reverse. At the extreme, if family life suffers this may have wider social costs. Involvement in community, cultural, sporting or other activities can be a benefit to community and civil society at large. For instance, voluntary participation in school boards of trustees can contribute to the quality of our children's education. While such activities are not the responsibility of individual employers, they may choose to support them actively, since community activities can demonstrate good corporate citizenship, as well as helping develop workers' skills which can be applied to the workplace. THE BENEFITS GAINED BY ORGANISATIONS WHO HAVE INTRODUCED FLEXIBLE EMPLOYMENT PRACTICES ARE:
- An edge over rivals in recruiting the best people - Lower staff turnover - Improved reputation and corporate image - Increased numbers returning to work after maternity leave - A wider pool of talent from which to promote - Flexibility to meet emergencies, crises or unpredictable demand - Tasks organized around work rather than work around rigid job definitions and processes - Strengthened loyalty - A more satisfied, happier team - Reduced stress levels - Less sickness and unscheduled absence
61 6.5 UNIVERSALLY ADOPTED POLICIES AND PRACTICES OF WORK LIFE BALANCE: ! PART TIME WORKING
Usually defined as less than 30 hours per week. Hours may be worked over any number of days.
Benefits Points to consider Allows cover for busy periods Part-time working regulations extend the rights of part-time workers more in line with those of full time staff Popular option for women returning from maternity leave Can increase overall staff numbers and therefore training costs and fixed overheads
Negative associations with low pay/low status
! FLEXI-TIME Workers choose the hours they work within defined limits. Usually there are set 'core' times for attendance and controls over the maximum credit or debit hours which can be built up and carried over a period of time.
Benefits Points to consider Can help with travel difficulties Needs to be well organized/managed Can help reduce absence Requires a degree of self management Enables company to extend the hours when a service can be provided
Working times can be adjusted to meet peaks/troughs
Improved time keeping
! ANNUALIZED HOURS Agreed weekly hours are replaced by an annual hours arrangement and a forward working pattern of roistered and reserve hours. By agreement, reserve hours may be triggered at short notice. Pay is usually set at a regular, guaranteed monthly sum.
62 Benefits Points to consider Increases flexibility to handle seasonal fluctuations in demand Administratively complex to design and operate Allows parents to arrange their working hours around term time/school holidays
Allows parents to take advantage of off peak holidays
! FLEXIBLE ROSTERING
Arrangements which allow employees to schedule their working times and patterns to match predicted staffing level needs over a set period. Hours earned or owed may be stored in a 'time bank'.
Benefits Points to consider Reduces absenteeism Requires central administration Reduces time taken off for sickness Voluntary co-operation essential Increases flexibility to meet workload peaks and troughs Implications of national minimum wage legislation. Individual choice increases motivation Implications of working time regulations
! SHIFT SWAP
Simple working arrangements which allow employees to cover for colleagues and to take time off without using up holiday allowance.
Benefits Points to consider Reduces absenteeism Requires central administration Reduces time taken off for sickness
6S
! VOLUNTARILY REDUCED WORK TIME
Often referred to as 'V-Time'. Employees trade pay for time over an agreed period with an option to return to full time afterwards. Benefits Can help retain staff faced with a difficult personal situation or medium term domestic emergency
! TELE-WORKING OR FLEXIPLACE
An arrangement in which employees work from home or an external location and may communicate via a computer link.
Benefits Points to consider Reduces overheads Issues of supervision Better retention of staff with caring responsibilities Issues of communication Higher productivity Requires self management Increases pool of potential recruits Implications of national minimum wage legislation
! JOB SHARE Two, or more, people divide responsibility for one full time job.
Benefits Points to consider Adds to the expertise available May add to management responsibilities Improves information sharing and joint working Increases training/fixed costs Can sustain higher productivity over a shorter working week Requires good communication between sharers and their managers
Continuity management is important (for example in customer relationships)
64
! CAREER BREAK An extended period of paid, or more commonly, unpaid time off with an agreement of a job on return. Return to work may be phased.
Benefits Points to consider Helps retain staff Job cover may need to be planned Increases return to work after maternity leave Skills may decline during absence Experience may be enhanced during the break Extra effort needed to keep in touch and up to date
! LEAVE FAMILY Arrangements which support new parents through enhanced maternity leave allowance, paternity leave, adoption leave, family emergency. May include time off for moving home, family marriage, and bereavement.
Benefits Points to consider Helps recruitment and retention of key employees Arrangements must take account of rights to parental leave Increases loyalty
! WORKPLACE CHILDCARE FACILITIES Arrangements which may include on site nursery, out of school 'club', or holiday play scheme offering places to employees. Baby feeding/changing stations may be provided.
Benefits Points to consider Can utilize redundant premises A viable option only for large organisations or as part of a partnership Can simplify the journey to childcare/work many employees prefer childcare near to home if work is at a distance Can enable breast feeding to continue after a mother has returned to work schemes must be registered with local authorities and meet statutory requirements
6S 6.6 WLB PROGRAMS AT DABUR
LEAVE RULES These leave rules are modified from time to time. ! EARNED LEAVE EL WILL BE CREDITED AT THE RATE OF 3.5 DAYS ON COMPLETION OF QUARTER ENDING MARCH, JUNE, SEPTEMBER AND DECEMBER. THERE CAN BE BIFURCATION OF EL INTO ENCASHABLE AND NON-ENCASHABLE PORTIONS. ACCUMULATION ALLOWED UP TO 60 DAYS.
! SICK LEAVE SICK LEAVES MAY BE CREDITED FOR 7 DAYS. IN CASE IF AN EMPLOYEE AVAIL SICK LEAVES FOR MORE THAN 3 DAYS, HE/SHE NEEDS TO SUBMIT A MEDICAL CERTIFICATE FOR THE SAME. AN EMPLOYEE, IF REQUIRED, MAY AVAIL SL UP TO A MAXIMUM OF 3 DAYS WITHOUT PRODUCING ANY MEDICAL CERTIFICATE. MEDICAL CERTIFICATE SHOULD BE PRODUCED IF SL EXCEEDS 3 DAYS CONTINUOUSLY.
! CASUAL LEAVE
8 days per annum. For temporary and probationers, 3 days per quarter. CL cannot be combined with any other leave. Half-Day Casual Leave can be availed by officers working in Administrative Offices. CL is not encashable and cannot be carried forward to next year, if the same remains unutilized during the year.
! MATERNITY LEAVE (FEMALE EMPLOYEES)
66 A female employee shall be entitled to maternity leave for a period of 135 days (for the first two children) from the date she desires to proceed on such leave or from the date of actual confinement, whichever is earlier. For subsequent occasions of maternity, leave would be admissible to her only for a period upto 3 months. The leave application must be supported by a certificate from a registered medical practitioner or the Corporation's Medical Officer, as the case may be.
! Paternity leave (Male employees) A male employee shall be entitled to paternity leave for a period of 5 days within one month for two children. HOLIDAYS - National/Festival Holidays : 8 days per annum - Restricted Holidays (26 January, 15 august and 2 October) : 3 days per annum
67 6.7 HUMAN RESOURCE AT DABUR Dabur places great deal of confidence on its excellent pool of human resources, which it realizes is the key to its further growth strategy. The company continued its efforts to further align its HR policies, processes and initiatives to meet the business needs. In line with its focus on international operations, Dabur implemented a uniform HR structure across all the groups companys operations. This will enable seamless transaction s between domestic and overseas position. Also the integration of the personnel of the erstwhile Family Products Division (F.P.D) & Healthcare Products Division (H.C.P.D) was implemented efficiently to suit the requirements well within time. Major initiatives taken were: Dabur implements performance metrics for all key positions based on two aspects of the Balanced Score Card Approach- Financial and Internal Business Process. This approach clearly outlines the expectation from each position and will be upgraded to include two more aspects for any key managerial positions in future. The Company institutionalized the Assessment and Development Center(A.D.C) approach to all positions from staff to officer cadre and also at the senior levelsto objectively identify, develop and promote the talent from within, and to provide individual feedback for development of the participating employees. To encourage learning, the Company is planning to set-up a learning center, which will be equipped with a library, I.T & Web based sources of knowledge. It is also in the process of setting up a knowledge management portal and a leadership and capability development cell Dabur is committed to attract fresh talents. Towards this end, the company required over 20 candidates from leading management and engineering institutes in the country, who will be inducted.
68 HUMAN RESOURCE AT DABUR
# Age: - the average age of employees in HR department at Dabur is 45 years. # Qualifications: - Most of the employees at Dabur are science graduates. # Total number of employees working at DIL is 152.
Department No of employees HR 6 A/Cs. 5 Safety 1 Excise 4 Purchase 3 Engineering 62 Production 47 Quality 11 Stores 13
69 6.8 ANALYSIS
INFERENCE:- From the above chart it can be concluded that majority of the employees receive the annual income between 20K-40K. Over the most of these employees work at operational level (manufacturing unit) and not satisfied . After that most of the employees receive the annual income of 40K-80K. Majority of these employees belong to executivelevel. Out of the 20 samples taken, only 3 employees receive the annual income of 6>80K
(##6+B F#*%2" <2uK 2uK-4uK 4uK-8uK >8uK Annual Income of employees No of respondents <20K 4 20K-40K 8 40K-80K 5 >80K 3 7u
INFERENCE:-
Only 76% of employees have correct information about company policy for availing various facilities. 14% and 10% either have no or wrong knowledge about it. It was observed that the most of the employees who are not aware of the policies belong to worker class and are even illiterate. The company should focus more on making their employees aware of the policies and facilities provided by the organization so that they can avail these facilities and can live a balanced work life.
No of respondents once in two weeks 0 once In a month 10 once in six months 6 once in a year 4
INFERENCE:-
Even though the employees have strict working schedule, majority of the employees manage to meet their children teachers to know about their childs progress.
8%1 %<,"# D% "2;B%E"") 2"", ,3"$& *3$BD&"#R) ,"+*3"&) ,% ?#%1 +=%6, ,3"$& *3$BDR) ;&%.&")) once in a two weeks once in a month once in six months once in yeai 72
No of respondents Yoga 6 Sports 10 Listening Music 4 Meditation 0
INFERENCE:-
Most of the employees play different sports either in the office premises or at their own place to manage their stress. After that yoga is preferred and then listening to music.
0&"<"&"#*") %< "2;B%E"") ,% 2+#+." ,3"$& ),&")) Yoga Spoits Listening Nusic Neuitation 7S Top four preferences of employees in progression amongst various facilities that help them to balance their work life
INFERENCE:- The top most preferences of employees in progression among various facilities that help them to balance their work life are time off for family engagements/events , flexible hours in general , holidays/paid time offs , and job sharing.
Level of satisfaction No of respondents Highly unsatisfied Unsatisfied 2 Indifferent 6 Satisfied 8 Highly satisfied 4
INFERENCE:- At Dabur, the satisfation level of employees while working in organisation is quite high. Mojority of the employeesare satisfied with the time spent at work.
7S
Time balance between professional and personal life
INFERENCE:- The above chart depicts the balance of employees between professional and personal life. Majority of the employees spend only 2-3 hours with their children.
It is observed that employees who spend more than 12 hours at workplace get less time to spend with their children.
Among employees who spend 8-9 hours at workplace, most of them spend 2-4 hours with their children.
Some of the employees who spend only 7-8 hours at workplace, spend even less than 2 hours with their children . The reasons may be some personal engagements like gym, clubs ,recreational activities etc.
Facilities No of mployees who avail these facilities Telephone for personal use 2 Counseling services for employees 5 Parenting or family support programs 2 Exercise facilities 0 Relocation facilities and choices 3 Transportation 8 others 0
INFERENCE:- Out of the various facilities provided by the organization, most of the employees avail the transportation facility. Parenting or family support programs are also popular among employees. Counseling services for employees is also provided, but only few employees avail this service. Telephone facility for personal use is only provided to few employees,
77
CONCLUSION AND RECOMMENDATIONS
78 7. CONCLUSION
Work-life balance debates have progressed rapidly and are changing peoples lives gradually. But they need to keep progressing as people think they are policies just for parents, undermining the wider relevance of work-life balance and misunderstanding what it is for. Work-life balance is about living a fulfilled life inside and outside paid work and having full control over time. Despite the increased profile of work-life balance, most workers are not aware of companys facility providing WLB facilities and hence still face a time squeeze. This report clearly demonstrates that, over the past few years, the way we live has been transformed, creating further transformations in products, services and labour markets. The five key drivers of change in the world of work identified include not only changing markets and changing labour markets; but also changing regulation; changing work organisation; and peoples changing expectations. Despite these substantive changes, however, employers policies and practices have sometimes been slow to adapt to change. Key findings from the study, informed by surveys of DIL employees, include: According to the survey findings, it can be interpreted that for DIL employees, amongst organizational, technological and familial factors affecting WLB, it is organizational factor (support from colleagues at work), which affects them the most. According to the survey findings, the inference is drawn that high annual income does not greatly influence the work life balance of the employees. Many of the employees having higher annual income disagree with the fact that they have good work life balance. Majority of the members agree that WLB policies in the organization should be customized according to the individual needs. Since employees are the backbone of the company. So company should satisfy them in order to improve the business in the higher competitive market of the liberalized economy. Majority of the members feel that they have good work life balance. The following reasons may be responsible for the same:- Good working environment of the company. Non working spouse of the employees. Various provisions provided by the organization. Involvement of the family members in official functions. 79 Since Dabur manufactures health related products, it is also observed that majority of the employees are healthy and do not suffer from any stress related diseases. Every member in the survey agrees to the fact that if the employees have good work-life balance, the organization will be more effective and successful. DIL has male dominated culture where 95% of the employees are male and among them, 94% have non working spouse. This could be the reason behind a good work life balance of the employees in the organization. Most of the employees reported that they do not even avail the facilities provided by the organization due to their ignorance. Work-life balance has always been about changing and challenging the way we work. Its future is in making work better for organisations and for employees. I hope that this work will support DIL to think about how to develop new models of work appropriate to their business, and look forward to the further development of innovative practice in organisations over the next few years.
8u 7. RECOMMENDATIONS
Employees today are asking for a workplace that helps them balance the demands of their work and family lives, rather than forcing them to choose one over the other. Organizations have also accepted that among the many other aspirations of employees, the most important is one that seeks to be able to provide well for their family. Following recommendations are made to DIL to increase work-life balance in the organization:
! DIL requires reviewing its work-life balance policies and customizing them according to the individuals needs which might help employees increase productivity taking into consideration increasing dual career families.
! DIL needs to develop how best to communicate Work-Life Policies to make them accessible to members.
! DIL does not provide any recreational or exercise facilities in the organization nor does it has any separate policies. Company should focus on providing the same.
! Many members reported that they are not able to spend enough time with their families due to strict working hours. Therefore company should make provisions for flexible working hours in general so that the employees can spend more time with their families.
! The focus of debates about work-life balance needs to shift away from the business case. There is a social need for organizations to consider sustainability.
! DIL should encourage its employees to avail work-life balance facilities provided by the organization.
! More and more social functions suitable for families should be organized from time to time which helps in building interpersonal relationship among employees.
81 ! There is a need for DIL to understand better the pitfalls as well as the benefits of work-life balance and to ask their workforce what options would work for them.
Changing models of work within organisations to respond to employee, customer and organizational needs represents a real opportunity for DIL to increase its productivity and to enable more people to fulfill their potential inside and outside paid work.
82
KEY LEARNINGS
8S
8. KEY LEARNINGS
The experience in Dabur enriched the knowledge. To start with, Dabur is an industry where human resources and technology come together to manufacture customized products that gain recognition. This entire tenure of 6 weeks of internship with Dabur has been a learning experience for me. It provided me an opportunity to integrate my previous educational knowledge with more professional knowledge and skills gained through practical, real world work experience with industry employers.
Being the intern in the HR department (Human Resource) in production unit I learned the overall procedure of providing ESIC numbers to employees and how to issue card numbers them.
Apart from my major roles and responsibilities, my colleagues, taught me how to use dabur software, a database for the keeping and recording of all the clients details. Also they taught me about their corporate culture, organizational structure, application handling .
Other staff members were just as helpful and because of them I even learned about other things related to the day to day running of the office.
They gave me project on work life balance to understand how there employees manage their professional life and personnel lives. This project helps me to understand their responsibilities that they face at work and home . This helps me to understand the factors that influence their work life balnce
Time sense was very much evident in Dabur, which gave me an insight as to how punctuality is very important.
My overall experience with the company was very good with the support of the company employees and the response got from the management was appreciable.
84
ANNEXURE
8S QUESTIONNAIRE Name: Designation: Marital Status: Please tick the appropriate options: 1. Gender: Male: Female: 2. Age: Below 30 years: 30-40 years: 40-50 years Above 50 years: 3. Level of Education: Undergraduate: Graduate: Post graduate & Above: Others, Please specify: 4. Level of Employment: Operational Level: Executive Level; Managerial Level: Directorial Level: 5. Monthly Income: Below Rs. 20,000: Rs. 20,000-40,000: Rs. 40,000-80,000: Above Rs. 80,000: 6. How long have you been an employee of Dabur? Less than 1 year: In between 1-2 years: In between 2-3 years: More than 3 years:
7. Please rate the importance of the following statements on a five point scale to illustrate the effect of work/life balance on employee satisfaction.
1-Always, 2-Often, 3-Sometimes, 4-Rarely, 5-Never
86 S T O U V 1. Are you able to meet the deadlines?
2. Do you work the number of hours as decided by the company?
3. Are you able to meet the expectations of your supervisor /manager?
4. Do you think it is easy to take leave from the job?
5. Does your company allow flexible timings?
6. Do you take additional work home?
7. Do you get time to spend with your family and friends?
8. Do you get home on time?
9. Do you get time to keep yourself healthy and fit, or play sports?
10. Do you take part in community activities or fulfil religious commitments?
11. Do you generally feel that you are able to balance work and family life?
12. Do you feel pressured by too many demands from your clients/boss?
13. Do you get tired or depressed because of work?
14. Does the company provide recreational facilities to the employees at the workplace?
15. Do you feel there is transparency in the organisations policies?
16. Do you ever miss out any quality time with your family or your friends
87 because of pressure of work? 17. Do you feel the environment in this organisation supports a balance between work and personal life?
18. Do you think your manager treats all his employees fairly?
19. Does your organization encourage the involvement of your family members in work achievement reward functions?
8. How do you manage your stress? a. Yoga b. Sports c. Listening Music d. Meditation e. Others, specify 9.Does your organization provide you with any of the following : - a) Telephone for personal use b) Counseling services for employees c) Parenting or family support programs d) Exercise facilities e) Relocation facilities and choices g) Transportation
Thank you very much for your time.
88
REFERENCES
89 10. REFERENCES
Budd, J. and Mumford, K. (2003) Relative availability of work-life balance practices to lone parents. Employment Relations Occasional Papers. London: DTI C. R. Kothari (2001) Research Methodology of Wishwa Prakashan Publishing, Chennai 17, Edition McGregor, D. (1960). The human side of enterprise. McGraw-Hill. http://www.theworkfoundation.com/Assets/PDFs/Flexibility_paper_JW.pdf http://www.employersforwork-lifebalance.org. http:www.dabur.com http://indiainfoline.com/bisc/hrpg.html http://auxillium.com/contents.html http://www.hr-guide.com http://worklifebalance.com/ http://daburintranet/home