Introduction of HRM:

Human resource management is an approach to the management of people,

based on four fundamental principles. First, human resources are the most important
assets an organization has and their effective management is the key to its success.
Second, this success is most likely to be achieved if the personnel policies and
procedures of the enterprise are closely linked with, and make a major contribution to,
the achievement of corporate objectives and strategic plans. Third, the corporate
culture and the values organizational values may need to be changed or reinforced,
and that continuous effort, standing from the top, will be required to get them
accepted and acted upon. Finally, HRM is concerned with integration – getting all the
members of the organization involved and working together with a sense of common
purpose.

HRM is a strategic approach to the acquisition, motivation, development and

management of the organizations human resources. It is specialized field that attempts
to develop programs, policies and activities to promote the satisfaction of the both
individual and organizational needs, goals and objectives. HRM is proactive rather
reactive, i.e., always looking forward to what needs to be done and then doing it,
rather than waiting to be told what to do about recruiting, paying, or training people or
dealing with the employee relations problems as they arise. The techniques for the
application of HRM will include many familiar functions of personnel managers, such
as manpower planning, selection, performance appraisal, salary administration,
training and management development. This HRM is production model approach to
personnel management. The HRM model is characterized as being employee-oriented
with an emphasis on the maximization of individual skills and motivation through
consultation with the workforce so as to produce high levels of commitment to
company strategic goals. Any organization whether a business organization or an
industrial enterprise needs four important resources i.e., Money, Material, Men, &
Machine not only for its growth and future development but also even for its
continuance and survival. Since Management is getting things done through the
efforts of these people, manpower management has also become a difficult task in fact
without the productive efforts of human being, materials, and resources would be of
no use. It even controls the application of other resources. For the efficient use of all

1
 the resources, the employment of a suitable human force is essential. Human
resources management is concerned with this aspect of the essential.

Recruitment & Selection:

Recruitment:

In the words of Edwin & Fillipo. “Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the organization”.

According to this definition recruitment is a prospecting job where

organizations make searching for prospective employees but in practice prospective
employees for also seek out organizations like organizations seek out prospective
employees. Therefore, the job of dependent on timing otherwise, recruitment will not
be successful. Recruitment represents the first contact that a company makes with
potential employees.

Selection:

Selection is the process of picking individuals (out of the pool of job

applicants) with requisite qualifications and competence to fill jobs in the
organization. Recruitment and selection are the two crucial steps in the HR process
and are often used interchangeable. There is, however, a fine distinction between the
two steps. While recruitments refer to the process of identifying and encouraging
prospective employees to apply for jobs, selection is concerned with picking the right
candidates from a pool of applications. Selection, on the other hand, is negative in its
application in as much as it seeks to eliminate as many unqualified applicants as
possible in order to identify the right candidates. As stated in the previous chapter, the
term recruitment is widely used to refer to the whole process of employee hiring.

Need for the study

In today's rapidly changing business environment, organizations have to

respond quickly to requirements for people. Hence, it is important to have a well-
defined recruitment policy in place, which can be executed effectively to get the best
fits for the vacant positions. Selecting the wrong candidate or rejecting the right

2
candidate could turn out to be costly mistakes for the organization. Selection is one area
where the interference of external factors is minimal. Hence the HR department can use
its discretion in framing its selection policy and using various selection tools for the
best results. This case discusses the importance of having an effective recruitment and
selection policy. It discusses the  reason behind selecting this topic consists of a good
selection process that starts with gathering complete information about the applicant
from his application form and ends with inducting the candidate into the organization.

It is important to have an effective recruitment and selection policy in an

organization, because of the recent trends that have influenced the process of
recruitment and selection in an organization, various challenges faced by organizations
in the process of recruiting and selecting employees. Better recruitment & selection
strategies result in improved organizational outcomes. The more effectively
organizations recruit and select candidates, the more likely they are to hire & retain
satisfied employees. Recruitment is the process of seeking people to apply for a vacant
position in an organization and selection is choosing the most suitable person for the
job.

Significance of the Study:

Personal management is an art of recruiting selection and placement in any

organization. If human resource planning, procedure is not proper in any organization
that will lead to unqualified staff, excess staff or lack of staff.

The research have made an attempt to study the various categories of the
employees to know their problem in the organization, so that researcher‘s intervention
may be more meaningful. The study done by the research may help for further
research and learning process.

Scope of the Study:

The study covers follow the study on issues like

 Interview panel,
 Salary levels of the employees,
 Sources of recruitment and selection,

3
  Main sources of recruitment verification,
 Using problem solving techniques
 Trade unions influence in recruitment and selection and
 Issues relating to training after the selection process which also have impact
on the overall satisfaction and performance of the employee. The study is
conducted only on employees of KDMPMACU ltd., Vijayawada, which forms
the universe of this study.

Objectives of the study:

The objectives of the study are to examine the Recruitment and Selection in
Krishna District Milk Producers Mutually Aided Cooperative Union Ltd. With
specific emphasis on the following:

• Identify the major stages in the recruitment and selection process

• Determine which recruitment & selection practices affect organizational

outcomes

• Evaluate the job description and person specification

• Determine present and future requirements of the organization in conjunction

with its personnel planning and job analysis activities.

• To give Suitable suggestions based on this study.

Research Methodology:

Following data is collected from the various sources like Primary Data and
Secondary data.

Sources of Data:

1. Primary Data is collected by discussions and interviews with the

executives of the Union and the researcher has collected the data and
the opinions of Employees about the Training and Development.

4
 2. Secondary Data is mainly collected from the annual reports of the
Krishna Milk union and Websites of the company.
3. Sample size – The sample Size is restricted to 100 employees.

Limitations of the Study:

The study was completed in a span of 4 weeks. Based on the objective of the
study, great care was taken in the collection of data throughout the study.

The following are some to the limitations during the study:

 The limited time it is not possible to collect the full information about the
organization.
 Sample size is only 100.
 The study is being conducted only in the Krishna district milk union and city.
 In-Depth analysis was not made due to limited availability of time.
 The selected sample may or may not represent the entire work force.

5
 INDUSTRY PROFILE

Industry Scenario:

India with 57m cows and 39 buffaloes has the largest population of cattle in the
world. Milk production gives employment to 70m dairy farmers. In terms of the total
production, India ranks 2nd to USA with a production of 71m tons in 1997-98. Milk
production is expected to cross 74m tons in 1998-99, making India the no 1 milk
producing nations in the world. Although milk producing has grown at a fast pace
during the last three decades, milk yield per animals is very low in India at around
1.5lt per day. The main reason for the yield is; lack of use of scientific practices in
mulching inadequate availability of fodder in all seasons, unavailability of veterinary
health service.  

Operation flood:

 The transition of the Indian milk industry from a situation of net import to that of
surplus has been led by the efforts of national dairy development board operation
flood programmed under the aegis of the former chairman of the board Dr. kurien. 

       Launched in 1970, operation flood has led to the modernization of  Indian dairy
sector and created a strong network distribution of milk has increased from 132GM
per day in 1950 to over 220gm per day in 1998. The main thrust of operation flood
was to organize dairy co-operatives in the milk-shed areas of the village, and to link
them to the four metro cities which are the main markets foe milk.  The efforts
undertaken by NDDB have not only led to enhanced production improvement in
methods of processing and developing of a strong marketing network, but have also
led to the emergence of dairying as an important sources of the employment and
income generation in the rural areas, it has also led to an improvement in yields,
longer locations periods, shorter calving intervals etc., through the use of modern
breeding techniques. Established of milk collection centers and chilling centers has
enhanced life of raw milk enabled minimization of wastage due to spoilage of milk.
Operation of flood has been of one the world’s largest dairy developing programmed
and looking at the success achieved on India by adopting the co-operative route a few
other countries have also replicated the model of India’s white revolution.  

6
       Market size for milk sold in loose /package form is estimated to be 33m tons
valued at Rs429bn. The market is currently growing at round 4.5% pa in volume
terms. It is one of the single largest segments amongst food products. 

Milk production is largely concentrated in few states namely Uttar Pradesh,

Gujarat, Punjab, Rajasthan, & Haryana. Milk production grew by a mere pa between
1947 and 1970. Since the yearly 1970’s under operation flood, production growth
increase significantly averaging over 5%pa. About 75% of milk is consumed at the
house hold level which is not a part of commercial dairy industry; milk demand in
four large metros is estimated to be 6m liters per day about 40% of which is supplied
by 10 public sectors/co-operative dairy plants. The bulk of remainders are supplied by
the traditional unorganized sector. Loose milk has a larger market in India as it is
perceived to be fresh by most consumers. In reality however, it opposes a higher risk
of adulteration and contamination.

Operation flood achievement:

No.  of  DCS Farmer Women Milk Milk

State/UT 
Organized members members procurement Marketing
(cumulative) (000) (000) (TKGPD) (TLPD)
Andhra 4,647 779 144 1087 1130
Pradesh
Asam 66 3 0 3 7
Bihar 5,183 265 39 553 303
Chhattisgarh 526 25 6 26 31
Delhi NA NA NA NA 2353
Goa 175 175 19 3 31
Gujarat 12,025 2458 633 6441 2353
Haryana 5,382 261 38 405 278
Himachal 391 20 7 25 20
Pradesh
Jammu & ** ** ** ** **
kashmir
Jharkhand 80 2 0 6 191
Karnataka 10,114 1838 527 2961 1711
Kerala 3,282 750 132 764 848
Madhya 5,008 246 37 457 315
Pradesh

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 Maharashtra 19,537 1637 398 2802 2749
Nagaland 78 3 0 4 4
Orissa 2,164 142 60 203 158
Pondicherry 104 36 16 57 70
Punjab 6,749 405 50 784 526
Rajasthan 12,714 594 152 1,557 1,014
Sikkim 209 7 0 8 8
Tamilnadu 7,832 1,876 639 2,085 1,507
Tripura 84 4 1 3 9
Uttar 18,776 861 246 828 430
Pradesh
West Bengal 2,449 185 65 336 706
All India 1,17,575 12,416 3,194 21,447 16,808

Dairy co-operative progress on key parameters during 2006-2007 

Marketing size and growth:

       Market size for milk (sold in loose/package form) is estimated to be 33m tons
valued at Rs.429bn. the market is currently growing at round 4.5% pa in volume
terms. It is one of the single segments amongst food products. Milk production is
largely concentrated in few states namely Uttra Pradesh, Punjab, Gujarat, Rajasthan.
And Haryana, milk production grew by a mere 1% between 1947 and 1970. Since the
early 70’s under operation flood, production growth increased significantly averaging
over 5%.About 75% of milk is consumed at the household level which is not a part of
commercial dairy industry. Milk demand in four large metros is estimated to be 6m
it’s per day, about 40% of which is supplied by the traditional unorganized sector.
Loose milk has a larger market in India as it is perceived to be fresh by most
consumers. In reality however, it poses a higher risk of adulteration and
contamination.  

Major players:

The packed segment milk segment is dominated by the dairy co-operative milk
marketing federation (GCMF) is the largest player. All other local dairy co-operatives
have their local brands (for e.g. Gokal, warana in Maharashtra, saras in Rajasthan, verka
in Punjab, Vijaya in Andhra Pradesh, Aavin in tamilnadu etc.,) am rut industries, once a
leading player in the sector has turned bankrupt and is facing liquidation. The dairy
industry was deli censed in 1991 with a view to encourage private investment and flow of

8
capital and new technology in the segment. Although licensing attracted large number of
player, concerns on issues like excess capacity, sale of contaminated/substandard quality
of milk products etc. induced the government to promulgate the MMPO (milk products
order) in 1992. MMPO prescribes state registration to plants producing between 10000 to
75000 liters of milk per day or more that 3750 tons per year on milk solids have to be
registered with the central government. The stringent regulations, government controls
and licensing requirements for new capacities have restricted large Indian and minelayers
from making significant investment in this product category. Most of the private sector
players have restricted themselves to manufacture of value added milk products like baby
food, dairy whiteners, condensed milk etc. 

Indian world’ largest milk producers:

       India has become the world’s no.1 milk producing country, with output in 1999-
2000 (marketing year ending March 2000) forecasting at 78 million tones. United
States, where the milk production is anticipated to grow only marginally at 71 million
tones, occupied the top in the year 1997. India’s milk production was on par with the
U.S. at 557 million tones would continue the study progress in milk production in the
growth pattern has been attributed to a sustained expansion in domestic demand
although per capital consumption is modest at 70kg of milk equivalent.  

 Annual milk production has trebled:

       India’s annual milk production has more than trebled in the last 30 years, rising
from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This raped
growth and modernization is largely credited to the contribution of dairy co-operation,
under the operation flood (of) project assisted by many multilateral agencies including
the European. Union the world bank, FAO a WEP (world food program). In the
Indian context of poverty and malnutrition. Milk has a special role to play for its
many nutritional advantages as well as providing supplementary income some 70
million farmers in over 500.000 remote villages. 

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 World’s Top Milk Producers:

Countries 1998 1997 1996

Indian 74 71 6
United states 71 71 70
Russian federation 33 34 36
Pakistan 22 21 20
Brazil 22 21 19
Ukraine 14 15 16
Poland 12 12 11
New Zealand 12 11 10
Aistrelia 10 9 9
Ec 125 15 125
World (include others) 557 549 542

Source: as for the website.www.vijayadairy.com. 

Indian diary industry:

      Indians modern dairy sector has expanded rapidly. From an insignificant 200,000
liters per day (1pd) of milk being processed in 1951, the organized sector is presently
handling some 20 million 1pd in over 400diary plants. Already, one of the world’s
largest liquid milk plants is located in Delhi, handling over 800000 liters of milk per
day (Mother dairy, Delhi). India’s first automated dairy (capacity: 1 million 1pd)-
mother dairy, Gandhi agar- has been established at Gandhi nagar near Ahmadabad,
Gujarat, in western India. India is owned by India’s biggest diary co-operative group,
Gujarat co-operative milk marketing federation (FCMMF) in and, within annual
turnover in excess of Rs.3 billion capacity of 1.5 million 1pd has also been
commissioned. India’s first vertical dairy (capacity: 400,0001pd), owned by the
Pradesh cooperative dairy federation (PCDF) has been commissioned at Noida,
outside Delhi. 

Objectives of Indian Dairy Corporation:

 To promote dairy industry in the country.

 To assist the state government and other organization including co-operation
societies interested in the promotion of provide a package a of technical inputs
for enhancement of milk products.
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  To assist in expanding the capacity and operations of existing dairies in big
cities and rural areas.
 To assist in development of allied industry required to meet the needs of dairy
development.

The winning edge:

      A vast market or dairy products is being built as disposable incomes increase. It is
focus is the increasingly affluent middle class, numbering some 300 million almost
the population f the united states- which is confined to well- defined urban pocket and
is easily accessible. Milk occupies pride of place as the most coveted food in the
Indian diet, after wheat ad rice, milk-based sweets are a culinary delight in all homes
throughout the year.

       The milk production is pre-dominantly rooted in the co-operative system. Its

focus is on the small rural farm having one or two cows/buffaloes, yielding 2-3 liters
of milk per animal. This system is the basis of operational flood, the world’s largest
dairy development program. The preferred dairy animal is the buffalo. Some 65
percent of the world buffalo milk is produced in India. It has30 percent higher total
solids compared to cow milk – an average of 16%vs .12% for cow milk. Valued for
its high fat content (7% vs3.5%), it is also high in calcium, phosphorus, lactose ad
proteins, buffalo milk is the delight of the milk processor for its more profitable
handling. 

Export potential:

       India has the potential to become one of the leading players in milk product
exports. Location advantages India is located admit major milk deficit countries in
Asia and Africa. Major importers of milk and milk and milk products are Bangladesh,
china, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman
and other gulf countries, all located close to India. Low cost production: milk
production is scale insensitive and labor intensive. Due to own labor cost, cost of
production of milk is significantly lower in India. 

Concerns in export competitiveness are:

11
Quality: significant investment has to be mad in milk procurement, equipments,
chilling an refrigeration facilities. Also, training has to be important to improve the
quality to bring it up to international standards. 

Productivity: To nave an exportable surplus in the long-term and also to maintain

cost competitiveness, it is imperative to improve productivity of Indian cattle. There is
a vast market for the export of traditional milk products such as ghee, shrikhand and
other ethnic sweets to the large number of Indians scattered all over the world.

SWOTANALYSIS:

Strengths:

 High level of productions and global standings in most of the agro products.
 High level of employment generations both direct and indirect.
 High level of skill development through various institutes for agriculture
production and technology management.
 Lower level of production costs even with poor productivity and yields due to
lower overheads.
 Indian dairy farmers are very cost effective even after working in a very low
subsidized environment irrespective of their European counterparts.
 Cheap labor force.
 Higher customer.

Weakness:

 Poor productivity and yield.

 Poor quality management at the production levels.
 Not much of technology penetration in the rural hinterland.
 Existence of any processing facilities at the farm level like food parks etc.
 Poor quality orientation and consciousness at the farm level.
 Higher costs for food processing an thus costlier processed food.
 Lack of scale in food production as well as lack of proper supply chain
management and refrigerated chains.

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  Quality standard management execution more obligatory than mandatory
enforcement not too stringent for both domestic as well as exports markets.
 Poor over capita income thus restricting most of the consumers to live life
happily with unprocessed food products only as the processed food is very
costly due to cost inefficiencies arising out of poor scales and lack of
horizontal integration.

 Opportunities:

 More orientation towards mechanized, organic and large scale farming due or
better exposure of select India farmer’s formation to the international
environment.
 The growth of so called rural correlate is found to be more than their urban
counterparts in most of the regions in the country.
 Few large conglomerated (ITC, Reliance) shifting towards farming as
backward integration o provide better forward linkages to their domestic
FMCG and exports arms.
 Better accountability consciousness in various research institutes related to
agriculture for developing better varieties, breeds with higher productivity and
yields and also major industrial houses (Nicholas primal) providing support to
these institutes for a sustainable growth by investing heavily in new frontiers
of technology like biotechnology.
 Increasing share of India food products in the international markets due to
increasing Indians population outside the country as well as large exports by
Indian companies in last few years with the benefits extended by the Indian
government to exports income.

Threats: 

 Neighboring countries which are trying to become more competitive in labor

and more productive with their land use.
 More penetration and branding in the international markets by comparatively
very small nations both in size and production but with very high levels of
food processing more than 60-70% against that of our country at around 2%
for frites and vegetable and 18% for milk.

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  Lack of infrastructure at tea rural level makes it a curse to be a part of rural
India. Till now out of around 6.5lacs villages only 20% can be considered as
the one with amenities to provide a satisfactory life style. In rest even the basic
amenities are still to be provided and forget about any structured mannerism
for reverse logistics.
 The marginal farmer participation in any form is not remunerated well and
most of the cream is enjoyed by the middleman.
 In certain cases the middle man is earning more than both the farmer as well
as the processor put together.

Potential for investment in the dairy industry some areas of Indian dairy industry can
be toned up by the evocation of differentiated technologies and equipment from
overseas. This includes:

1. Raw milk handling: The raw milk handling needs to be elevated in terms of
physicochemical and microbiological properties of the milk in a combined
manner. The use of clarification and bactofugation in raw milk processing can
aid better the quality of the milk products.

2. Milk Processing: Better operational ratios are required to amend the yields
and abridge wastage, lessen fat/protein losses during processing. Control
production costs. Save energy and broaden shelf life. The adoption of GMP
(Good Manufacturing Practices) and HACCP (Hazard Analysis critical
Control Points) would help produce milk products and adapting to the
international standards.

3. Packaging: Another area that can be improved is the range of packing

machines for the manufacture of butter, cheese and alike. Better packaging can
assist in retaining the nutritive value of products packed and thus broaden the
shelf life. A cold chain distribution system is required for proper storage and
transfer of dairy products.

4. Value-added products: There’s vast scope for Value-added products like

desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and
sherbets to capture the dairy market in India.

14
 The Indian dairy industry has aimed at better management of the national
resources to enhance milk production and upgrade milk processing involving new
innovative technologies. Multinational dairy giants can also make their foray in
the Indian dairy market in this challenging scenario and create a win-win situation
for both.

Industrial Traditional Milk Products:

There is a large variety o traditional Indian milk product such as makkhan unsalted
butter.

 Ghee-butter oil prepared by heat clarification, for longer shelf life.

 Baundi-Milk and sugar boiled down till it thickness.
 Dahi-A type of curd.
 Lassi-curd mixed with water and sugar/salt.
 Channa/pannier-milk mixed with lactic acid to coagulate.
 Khoa-Evaporated milk used as a base to produce sweet meats. 

Indian’s Milk Product Mix:

Fluid Milk 46.0%

Ghee 27.5%
Butter 6.5%
Curd 7.0%
     
Khoa (Partially Dehydrated Condensed 6.5%
Milk)
 The market for indigenous
Milk Powders, including IMF 3.5%
Paneer & Chhana (Cottage Cheese) 2.0% based milk food products is
Others, including Cream, Ice Cream 1.0% difficult to estimate as most
as most of these products
are manufactured at home or in small cottage industries catering to local areas.
Customers while purchasing dairy products look for freshness, quality taste and
texture, variety and convenience. Products like dahi, and sweets like kheer, basundi
and rabri are perishable products with shelf life ofless than a day.  These are several
such small shops within the vicinity of residential areas. Consistent quality, taste and

15
freshness build consumer loyalty. And also several sweetmeat shops, which have built
a strong brand franchise, and have several branches located in various parts of a city. 

National Dairy Development Board (NDDB):

At the time of inauguration of cattle feed factory at kanjari in October, 1964.

The late Lal Bhadur Shastri, the prime minister of India paid unscheduled visit to milk
producer’s co-operative society and stayed there overnight. He was impressed by the
society and stayed there overnight. He was impressed by the socio-economic changes
brought by milk cooperatives in kaira district and chief executive of the organization
who is supported by professionals to carry out board’s activities.

Kaira District Co-operative Milk Producers Union Ltd., (AMUL):

Amul symbolizes the successful struggle of kaira district farmers to earn fair
price of therir products. It reached its climax in 1945 the milk was then collected by a
private trader Mr. Pestonji Eduraji person through contractors for Bombay milk
scheme. Every milk producer can become a member of the cooperative society. At
general meeting of members, representatives are selected to form managing
committee, which manages the day affairs milk collection and its testing concept, sold
cattle feed. Each society alos provided with artificial insemination services (AIS)
veterinary first aid.

Dairy Industry in Andhra Pradesh:

The main occupation in Andhra Pradesh in cultivation. The villages relied the
socio- economic development moral and cultural values of human resource dairy
stands as the back none of agriculture and at the same time it maintains important role
for stability of rural economic conditions and helps to maintain nations health by
supplying sweet milk. Now the production of milk became a farmers, small farmers
and agriculture labour.

16
Major dairy product manufactures in India and their Brands are explained here
under:

Company Brands Major products

Nestle Milk-maid, Sweetened condensed milk powder, malted
cerelac,actogen, Milo & food, milk powder & Dairy whitener, ghee &
everyday ice cream.
Mild foods limited Milk food Ghee &ice cream
Smith line beechen No Malted milk food, ghee butter & other baby
Ltd foods.
Gujarat No Butter, ghee and other milk products.
co-operative
market federation
Cadbury Bourn vita Infant milk food, malted milk food.
Britannia Milk man Flavor milk, ghee, milk       powder, biscuits
ghee.
 

  India had the potential to become a leading exported of milk and milk products due
to how labor cost, the cost of milk production is significantly low here to boost
exports, the dairy industry needs to focus on quality and productivity. 

Dairy co-operatives:

 Dairy co-operative account for the major share of processed liquid milk marketed in
the country. Milk is processed by 170 milk producers’ co-operative union, which
federate into 15 state co-operative milk marketing federations.

       The dairy board’s programmers and activities seek to strengthen the functioning
of dairy co-operatives, as producer owned and controlled organization. NDDB
supports the development of dairy cooperatives by providing them financial assistance
and technical expertise, ensuring a better future for India’s farmers. 

 Over the years, brands created by cooperatives have become synonymous with
quality and value. Brands like amul (GCMMF), Vijaya (AP), verka (Punjab), saras

17
(Rajasthan). Nadine (Karnataka), milkman (karalla) and gokul (kolhapur) are among
those that have earned customer confidence.  

Some of the Major Dairy Co-operative federation Include:

 Andhra Pradesh dairy development cooperative federation Ltd (APPDDCF).

 Bihar state cooperative milk producer’s federation Ltd (COMPFED).
 Gujarat cooperative milk marketing federation Ltd (GCMMF).
 Haryana dairy development cooperative federation Ltd (HDDDCF).
 Himachal Pradesh state cooperative milk producers’ federation Ltd (KMF).
 Kerala state cooperative milk marketing federation Ltd (KCMMF).
 Madhya Pradesh state cooperative dairy federation Ltd (MPCDF).
 Maharashtra rajaya sahakari maryadit durdh mahasangh.
 Orissa state cooperative milk producers’ federation Ltd (OMFED).
 Pradeshik cooperative dairy federation Ltd (up) (PCDF).
 Punjab state cooperative milk producers’ federation Ltd (MILKFED).
 Rajasthan cooperation dairy federation Ltd (RCDF).
 Tamilnudu cooperative milk producers’ federation Ltd (TCMPF).
 West Bengal cooperative milk producers’ federation Ltd (WBCMPF).

Andhra Pradesh dairy Development Co-operative Federation :( APDDCF):

State – wide enterprise of co – operatives for dairy development, the Andhra

Pradesh dairy development co-operative federation (APDDCF) had its genesis in
1981, with a three-tier structure. It had primary societies at village level union is the
district level and the federation as an apex body at the state level. The organizational
objectives which guide (APDDCF) to this day are; 

 Organize co-operatives of milk producers at village and district levels.

 Proved essential inputs to enhance milk production, feed and fodder
production, cross breeding program, veterinary aid, and take up development
programs to provide effective leadership and management skills to the milk
producer to help them manage their own 9200 co-operatives.

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  Develop infrastructure for processing of milk and manufacture of dairy
products and market wholesome and quality of liquid milk products in the
state.
 Fulfill the consumer needs of liquid milk and milk products in the state.
 Develop new products and packaging lines in tune with the changing scenario
of consumer market and needs.
 Integrate dairy development with overall rural development efforts and
provide greater employment to the rural poor.
 Today, there are 7000 co-operatives with 300 all-women co-operative and a
membership of over 8 lakh people across the state.  

The program diary industry was rooted with commendable help of the united
National international children’s Emergency fund, Food and Agriculture organization
and freedom from Hunger Company campaign organization of the U.K…

This organization insisted a lot of the establishment of the dairy units at

Hyderabad and Vijayawada in 1967 and 1969 respectively, which led to pioneer dairy
development program in Andhra Pradesh later to set cooling and chilling centers have
been setup to feed these two genetic units. The Government of Andhra Pradesh started
dairy development corporation ot interest of milk producers and ensuring adequate
supply of fresh milk at reasonable price to the urban consumers. In addition to that the
private units have been contributing their little mite in the development of dairy
industry M/s. Hindustan milk foods that has started a malted milk product factory in
Rajahmundry.

Further enhance working efficiency and to increase the turnover, the government
has constituted on autonomous dairy development Corporation on the
recommendation measure the dairy industry improving towards massive milk
productions and milk collections.

Dairy Development:

      In 1960, a pilot milk supply scheme was started in our state for the dairy
development; its initial milk collection capacity was 100 liters a day at the time of
starting. Now its dairy milk collection increased to 11 lakhs liters per day. It is also

19
working as a liaison between milk producers of villagers and consumers of the towns
by providing reasonable price to the producers to maintain stable markets. 

Operation Flood:

In our state operation flood was divide into three based as “Anand level”

1. Village level.
2. District level.
3. State level.

Operation Flood – I:

The project had an initial outlay of Rs. 116040 crores. It was mainly aimed at
developing the milk marketing system in the country as such major demand centers
like Delhi, Calcutta, Bombay & Madras were linked with the rural producing pockets
in the country.

The program has the following major objectives:

 Increase in capacity of milk processing facilities.

 Change in urban markets from traditional raw milk supplies to modern dairy
supplier.
 Resettlement of long distance milk transport and storage.
 Development of long distance milk transport and storage facilities.
 Improve in dairy farming standards.

Line of Action:

 India received 1, 26, 000 metric tons of skim powder (SMP) 4200 metric tones
of butter oil (BO) the donation were received over a period of 11 years.
 Through safes of these commodities, funds to the extent of Rs. 114.68 crores
were generated.
 Thus generated funds were again ploughed back for dairy development and
regeneration of funds to the same extant was done.

20
Operation Flood – II:

This was launched on 2 October 19798. The program has an outlay of Rs.
485.5crores. In this phase still more attention will paid to increasing the milk
production, the program designed to cover the whole country over a period of 7
years some 25 duster federation covering 155 co-operative unions will be formed.

The program has the following major objectives:

 Coverage of 10 million rural producer’s families.

 Creating of national milk had of 14 million crossbred cows and upgraded
buffaloes.
 Strengthening of national milk grid( NMG) by linking milk supply and
demand centers.
 Base- structure for national dairy industry.
 Increase in per capital consumption of milk products (144 grams/day).

Line of Action:

 India will receive aid in kind and short term loan.

 Tow tier cooperation foundation will have one additional tier at state level.
 Implementation to be done through farmers own federation.
 All milk sheds will be linked to NMG and also consuming center 50 viable
farmers organization will established.

Details of milk production sectors in A.P:

Number of co-operative societies 4857

Number of other centers 4297
Total collection centers 9154
Number of milk procurement routes villages 10249
Producers 886800
number of milk chilling centers 67
number of district dairies 9

21
number of milk power plants 7
Number of cattle feed plant 8

Important role in socio-economic development:

The dairy industry plays an important role in the socio-economic development

of India. The dairy industry in India is instrumental in providing cheap nutritional
food to the vast population of India and also generates huge employment
opportunities for people in rural places.

The Department of Animal Husbandry, Dairying, and Fisheries, which falls

under the central Ministry of Agriculture, is responsible for all the matters relating to
dairy development in the country. This department provides advice to the state
governments and Union Territories in formulating programmes and policies for dairy
development. It also looks after all the matters relating to production and preservation
of livestock farms (cattle and sheep). To keep focus on the dairy industry a premier
institution known as the National Dairy Development Board was established. This
institution is a statutory body that was established in 1987. The main aim to set up the
board was to accelerate the pace of dairy development in the country and attract new
investments.

India is a wonderland for investors looking for investment opportunities in the dairy
industry. The dairy industry holds great potential for investment in India and promises
high returns to the investors.

The reasons why the industry has huge potential for attracting new foreign investment
are:

1. There is a basic raw material need for the dairy industry; that is, milk is available in
abundance.
2. India has a plentiful supply of technically skilled laborers.

3. There is an easy availability of technological infrastructure.

4. India has all the key elements required for a free market system.

22
There are different sectors within the dairy industry that promise great business
investment opportunities:

•Biotechnology:

1. The Indian cattle yield less milk as compared to their foreign counterparts. The
Indian cattle breeders are on the lookout for ways to improve their milk yield through
cross-breeding. Thus, there is a huge potential available for foreign investors to invest
in dairy cattle breeding of high-quality buffaloes with hybrid cows.

2. There is also great scope for investment in different dairy cultures, including dairy
biologics, enzymes, robotics, and other coloring materials for food processing.

3. Producing bio preservative ingredients based on dairy fermentation, such as

pediococcin, acidophilic, Bulgarian, and Nisin contained in dairy powder, also
promise great investment opportunity.

•Dairy/Food Processing Equipment: Great potential lies for foreign investment for
manufacturing and marketing of cost-effective, top-quality food processing
machinery.

• Food Packaging Instruments: There is a tremendous investment opportunity for

foreign investors in the manufacturing of both machinery and packaging materials
that aid the development of brand loyalty and gives a clear edge in the marketing of
dairy products.

• Retailing: Retailing of dairy products also promises great investment opportunities

for standardization and upgrading dairy products in the main metropolitan cities.

• Manufacture of Ingredients: Several ingredients are involved in the making of

different dairy products like ghee, condensed milk, and cheese. Manufacturing of
ingredients for these products offers a great potential for foreign investment in India.

• Finished Products: There is a great scope for investment in the manufacturing of

finished dairy products such as cheese sauce and cheese powders.

23
• Technically Advanced Manufacturing Units: There is a great opportunity for foreign
investors to invest in establishing manufacturing units for dairy products. The
investors can build world-class manufacturing units and let them for hire. Building
manufacturing units supports specialized dairy-related activities, such as cheese
slicing, cheese packaging, butter printing, and dicing lines, which hold greater
potential over other activities. Thus, the dairy industry in India has huge investment
opportunities in a variety of sectors. The investors are all set to gain profitable returns
on their investment.

India is one of the fastest emerging economies today. With the government
encouraging foreign Investments in India, it has become easier for foreign companies
to foray into the Indian Markets.

COMPANY PROFILE

ORIGIN & HISTORY: Organized dairying in Krishna commenced in 1965 with

integrated milk project assisted by UNICEE A milk conversation plant f ir s t of its
kind in South India was commenced in April'1969. The organization of dairy industry
took basic changes beginning with husbandry department: ft was integrated with
project (1960), Dairy Development (1991), A. P. Dairy Development Co-operation
(1974), A.P, Dairy Development Co-operative Federation.

Krishna District Milk producers Co-operative Union got registered in 1983

district have 450 organized dairy co-operative societies with 67,000 member's
producers. There arc 340 producers' association centers.

COMPANY'S MISSION:

Farmer’s prosperity through technical innovations and customer orientation with

specific focus on quality and cost.

24
COMPANY’S VISION:

Dairying in the district to be the major instrument of strengthening rural economy &
making available safe milk and milk products.

SAILENT FEATURES:

 Daily average milk procurement: 1, 63.794Its.

 Turnover of business has reached to 200crores.
 Daily milk sales average reached to 1, 60,000lts.
 Obtained ISO 9001:2000, 14000 and HA.C.C.R certification.
 Earning profits and distributing bonus lo its members.
 Paying Rs. 68crores per year to farmer as cost of milk procured from them.
 Strengthened the rural economy by avoiding middlemen and making available
safe milk and milk products to the customer.
 Provided self employment to the rural women.

COMPANY PRIDE;

 First powder plant established in South India.

 Largest democratic functionary in the District serving the farming
community.
 Having more than Rs.1000crores grass root level production base.
 Providing direct and indirect employment lo people.
 First dairy to introduce five varieties of liquid milk.
 First dairy to introduce liquid ice cream in tetra brick pack.
 First dairy co-operative to introduce curd in cups in South India.
 First dairy to introduce butler milk and lassie in tetra brick pack.
 Annual turnover more than R&. 121crores with a continuous growth rate.
 First dairy to introduce Basundi in cups and m i l k cake.
 Distribution network with 27 milk distribution routes.

S.W.Q.T. ANALYSIS

25
STRENGTHS:

 Milk production potential in Krishna District substantial.

 Ability to handle highly perishable product milk.
 Adequate infrastructure facilities available.
 Ability to meet any consumer demand for milk and milk products.
 Ability to offer quality products with high profitability.
 Established bondage with farmers.
 Access to developmental funds and grants.
 Access to other co-operatives.

WEAKNESSES:
 High fixed costs occupying 15% of business turnover.
 Milk and milk products are high priced during competitive edge.
 Product manufacturing facilities are outdated due to lack of modern
facilities.
 Work culture not compatible with growing for customer service.
 Employee's skills at various levels require up gradation.
 Business systems and modern management culture is yet to be adopted.
 Managers lack of business experience.
OPPORTUNITIES:
 Increased purchasing capacity.
 Growing food service sector.
 Responsive state government
 Export opportunities for long life aseptic milk.
 Responsive milk producer base.

THREATS:
 Intense competition in liquid milk market.
 Entry of organized private section.
 Increasing competition for the marketable surplus milk in rural areas.
 Employee's resistance to change.

26
SUCCESS STORY:

District Krishna is on the river rain track of Krishna a bulling Bay of Bengal.
Krishna District knows for its quality cattle. In milk Cattle population it ranks second
in the state.

Organized dairying in Krishna commenced in 1965 with integrated Milk

product assisted by the UN1CEF. A milk conservation plant 1.25 LL Pd was
commenced in April, 1969 at Vijayawada. The dairy industry in the District had its
beginning under State Government as part of Animal husbandry activity. It was
integrated m i l k project (I960), dairy development department (1971), Andhra
Pradesh Dairy Development Corporation (1974) and A.P. Dairy Development C-
operative Federation (198I).

Union collects milk from about 1lakh milk produces covering KOO villages
organized through 20 routes. District union has 6 milk chilling canters one each
operating al Pamaru, Hanuman junction, Veerankilick, Gudlavalleru, Chilliikollu and
Tiruvuru with total processing capacity of 1.22lakhs / day. It has milk products factory
with the factory with the facilities to manufacture different milk products.

Milk -- 2.5Ikahs

Processing -- Its/day

Milk drying -- 22MT/Day

Butter -- 22 MT / day

Ghee -- 18MT/day

The milk products factory al Vijayawada handles surplus milk from all
coastal districts. About 1.73Lakh Kgs/day with peak touching 3.18lakh Kgs / day. The
factory conserves fat in the shape of white butter usually to the extent of 10O MT per
year. An Aseptic Packing Station (APS) was set up in (the Milk Products Factory to
pack 50,000 liters of long the milk (UHT MILK) per day. Union has also 2 cattle feed
mixing plants with a total capacity of 50 Mt / Day.

27
Growth of the factory:

As an integral part of the above project the milk products factory,

Vijayawada was commissioned on 11-04-1969. The Factory has got an initial
handling capacity of 1, 25,000 liters in the first stage with provision of handle 2,
50,000 liters milk in the second stage. It has crossed the mark of 1, 00,000 liters in the
very first year of its operation gelling admiration from the UNICEF officials.

The woman has been playing a greater role in the rural dairying i.e.,
feeding of animals, washing and milking etc. To encourage this activity in an
organized way the APDCFL of foundation three district viz., Nalgonda, Krishna and
Chittoor already 8 women co-operative societies are organized and 200 new members
have been enrolled a part from 1000 women members enrolled in other societies.

Milk Procurement:

Milk is being procured twice a day from about 830 villages in the district organized
through 2 routes and 6 chilling centers besides gelling raw milk directly lo the factory
from certain villages in a radius of 50km around Vijayawada. Among 4RO centers,
about 431 arc registers societies as under anand pattern.

MILK PRODUCT FACTORY – VIJAVAWADA

Data specification

Area occupied by the factory 27.3 acres

Value of factory building 400lakhs

Money giver by UNICEF 53lakhs

Machinery

Investment on equipment 600lakhs

Buildings

28
 Opened on TM-I969

Workers 1538

Date of formation of Union 6-7-1983

Date of transfer of management

of the union 8-2-1985

Annual Turnover 60Crores

Production Power

Milk 50000lts/day

Ghee 5tonnes

Butter 7tonnes

Milk powder 4tonnes

Packet filling 160000packets/day

Refrigeration capacity 1.5tonnes

Contracted maximum demand 9000 chilling

Processing 1, 50,000

UNIQUE ACHIEVEMENTS:

 The company got ISO 9001 and ISO 14000 trademark fur its quality of milk.
 The company recently made recur sales of 1.64lakh Its/day where as it’s.
 Previous sales record was 1.45lakh Its/day.

RANKING OF THE DISTRICT IN ANDHRA PRADESH:

Milk Production 3rd

29
 Processing 4th

Marketing 3rd

Krishna district has milk procurement ranging from 45000kgs to 105000kgs

per day from 1969 to 19&8 District being buffalo concentrated has wide procurement
fluxions. The District Co-Operative Milk Union provides the following inputs to the
farmers for increasing milk production.

 Premixed cattle feed.

 Cattle insurance at 2/3 subsidies
 Maternity first aid facilities
 fodder seeds at subsidized rates
 Animal vaccines & medicines at subsidizes prices
 Breeding bulk
 Extension services

CHILLING CENTRES:

The milk products factory Vijayawada has set up 10 chilling canters which are
given under centre have been producing chilled milk for the composition of the
various segments of the consumers. Chilling centers are very useful to milk products
factory following centers are in Krishna District under the location of milk products
factory, Vijayawada.

• Pamaru

• Hanuman Junction

• Veerankilock

• Gudlavalleru

• Chillakolu

• Tiruvuru

30
 • Gannavaratn

• Vuyyuru

• Kaikaluru

• Kankipadu

Town No. of Selling Booths Daily Sales (in liters)

Vijayawada 185 68000
Machilipatnam 42 4000
Gudivada 25 1200
Total 252 73200

INFRASTRUCTURE AND FACILITIES:

Milk products factory Vijayawada is located on 27.3 acres of land which

houses of dairy plant. Aseptic packing station Administration office, effluent
treatment plant, electrical substation and residential quarters. Following are the facilities
available in Milk Products factory Vijayawada and its field centers.

A. MILK PRODUCTS FACTORY VIJAYAWADA

S.NO. IN a me of the Unit Capacity

Facility

1 Milk Processing Lakes Lts/ day 2.5

2 Milk drying MT.s/day 22.0

3 Ghee manufacturing MT.s/day 18.0

4 Butter manufacturing MT,s/day 22.0

31
 5 UHT Milk packing Lt s/day 45000

6 Milk Packing Lts/day 200000

7 Go down space M.T.s 3000

8 Butter Cold Store M.T-S 500

B. FIELD

S.NO. IN a me of the Center Unit Capacity

1 MCC Pamaru Lts/day 50000

2 MCC Veeranliock Lts/day 18000

3 MCC Gudlavalleru Lts/day 18000

4 MCC Hanuman Junction Lts/day 18000

5 MCC Chillakallu Lts/day 12000

6 MCC Tiruvuru Lts/day 12000

Total 128000
7 No. of Computerized milk 25
collection and testing centers
8 No. of milk coolers operating 6
(planned to establish 10 more)
9 DCS having electronic milk 450

10 testers
No. of A.T. Centers 56

11 No. of V.F.A. Centers 240

12 No. of DCS organized 630

13 No. of MPAs 320

14 Exclusive women DCSs 103

15 Farmer members 118689

32
 16 Women members 23347

17 No. of milk routes 35

18 No. of DCS having it own 400

buildings

C. Cattle Feed

S.NO. Name of the Plant Unit Capacity

1 FMP Buddavaram M.T-s/day 30.0

2 FMP M.T.s/day 18,0

Milk Processing and Production:

Dairy Manager is heading the production division supported by four dairy

managers, 11 Assistant managers and other production staff engaged in m il k
reception, milk processing. Butter making, Ghee making, Powder making bi-product
its manufacturing and finished goods section production operations begin with milk
reception at the dairy dock and continued round the clock.

MILK PRODUCTION FLOW CHART

Milk from villages

Raw milk reception Chilled milk reception

Milk Chilling

33
 Milk Pasteurization and Separation

Standardization

Cream Milk Packing Evaporation UHT Packing Other products

Butter Sachets & Cans Drying Market Khova, Lassi.

Ghee Market Powder Market

Packing &Marketing Market & Storage for reconstitution

Milk Reception:

As soon as milk is arrived at the reception dock either through cans or

tankers, the laboratory authorities conduct all the platform / bacteriological /
chemical test and after its quality confirmation the milk is received and sent to
storage.

Raw Milk:

Milk products factory Vijayawada is directly connected by around 175

villages a radius of around 50kms around Vijayawada.

The milk collected from these villages is collected directly at milk products
factory, Vijayawada for which it equipped with a can conveyer, an electrical
weighting machine, a dump tank and a straight through can washer with cleaning
capacity of 600 cons per.

Child Milk:

34
 Chilled milk from chilling centers and other stations through milk tankers is
received at the and after receiving quality confirmation from laboratory the milk is
sent for storage.

Milk Processing Section:

It has 12 storage tanks each of 15000lts. Four creams vats each of 5000 its
capacity. It is equipped with 3 milk pasteurizer of 20000lts. Capacity/hour
15000lts/hour and 10000lts / hour respectively. It also has cream pasteurizers with a
capacity of 5000lts/hour. Altogether it has storage capacity of 4lakh lts.

Operations:

Separation of required quantity of whole milk to the extent of demand and

with admixture of whole milk/cream and skim milk in required proportions, milk is
standardized according to their composition and sent them to the packing or
products manufacturing divisions.

Butter Section:

It is equipped with three butter churns with drum capacity of 1500lts each.
The cream loaded in the drums is churned for about three hours for separation of
liquid butter milk from cream after setting of butter it was washed with chilled water
to remove solids in liquid from butter milk is sent back to processing section for
further usage. To the extent of usage the butter is packed in 1/2kg packs and 20kg
and remaining is utilized for ghee making.

Ghee section:

There are 7ghee boilers in ghee section each with 1000lts capacity in which
utter is malted for 3 hours at 120c. After attaining satisfactory flavor, eight hours of
resetting of sediment at the bottom of the tank. There are settling tanks each 8000 its
capacity and two storage tanks each 3000lts capacity. Then the ghee is clarifies and
fitted with fine filtered ghee is packed in 5lt, 2lt, 1lt, and 1/2lt ect., The total
capacity of ghee packing is 18.0o M.T. per day.

35
Bio-Products section:

All the fresh milk products like buttermilk, sweet lassie, khova, panner,
yoghurt, milk cake are manufactured and packed under strict hygienic and aseptic
conditions in this section.

Powder Section:

It has two powder plants. An alfa level makes single effects gravity flow
milk evaporator plant with drying capacity of 8M.T. s per day and other valcan level
double effect gravity flow milk evaporator pant with capacity of 14M.T. s per day
are under operation. Fine and superior quality ISI grade SMP is packed in 25kg, 1kg,
& 1/2kg packs.

Milk packing:

It has the capacity to patch 200000Its of various verities of milk per day. It is
equipped with eight sachet packing machines each capacity is 150 tubes per hour. Five
verities of milk in 1/2 It sachets for direct consumers. Cans for institutions are being
packed.

Aseptic packaging station (APS):

Special officer is heading the AFS unit. The APS was established in 1988 with
financial assistance of NDDB in the existing campus of milk products factory.
Vijayawada a total out lay of 22crores. Milk is related in high temperature plant for 2-
3 seconds at about 1400 c under low procedure followed by rapid cooling. This
enables milk to be free of micro organize which are liable to proliferate during
storage, Tetra Brick is a compact, sterile, pilfer proof, unbreakable and long shelf life
pack that retains freshness and goodness of milk for 3-4 months.

Sales & Marketing:

Director of (S&M) is heading the sale and marketing wing supported by a

sales manager and three Asst. Sales Managers with a network of 700 booths, 300
round the clock cold chain parlors. The sales and marketing wing of the union
functions round the clock for the distribution and marketing of milk and milk
production.

36
DISTRIBUTION NETWORK:

1. Liquid milk distribution:

Vijayawada city is divided into 24 zones. Each one is connected by a

separate milk route operating booth morning and evening lo distribute the
milk lo the commission agents and cold chain points.

2. Product distribution:

a. Local distribution within the district; through distributors, stockiest

and retailers. Products are delivered to these distributors / stockiest /
retailers.

b. Distribution lo outside district : Through stockiest and E\. Factory

direct sales throughout the country,

Finance:

Senior Accounts Officer is heading the finance who is assisted by four Asst
Accountant Superintendent and Finance staff. The union has started its operations
independence from 08-02-1985 onwards after taking the fixed assets from the State
Federation at their hook values as on that dale.

Personal and HRD:

Personnel Officer is heading the personnel department. HRD

activities are carried out for the benefit of the employees.

It is looking after the service / administration matter of the staff of this union
besides implementation of the following Act

• Industrial Dispute Act 1947

• Payment of wages Act 1936 & Minimum wage Act. 1948

• Equal remuneration Act.

• Gratuity 1972

• Workmen compensation Act.

37
 • ESI Act 1948

• Trade Union Act 1926 etc.

Share Capital:

Authorized share capital Rs, 500 lakhs. The unions paid up share
capital at present are Rs. 106.24 lakhs and Rs. 31.87 lakhs Eire share suspense
wailing for conversion.

Long term loans:

The National Dairy Development Board has provided loans to the

union under O.F.2/3 program for capital projects in the union total Rs. 707.20 lakhs
was financed for various projects to the union under 70:30 loans cum grant basis.

RECRUITMENT AND SELECION POLICIES IN APDDC FEDARATION

LIMITED.

Right man at right place and right time is the guiding path for setting up for
selection and recruitment procedure in any organization. The labor Investigation
Committee right observed that recruitment is the first step in employment of labor and
naturally the methods and organization by means of failure of such employment. If
proper care is taken in the community at large is bound to benefit to a great extent.

Recruitment policies of different organizations are varied and diverse.

Organization have to be fully aware of the mandatory necessity of tapping the right
source for ensuring that the best available talent are selected and induced into the
organization. The selection process and techniques of a large number of organizations
are inadequate or faculty resulting in poor outputs and ineffective functioning. This is
especially true of the public sector undertaking where the intakes are substandard
necessitating recurring expenditure on training sub sequence to their selection and
induction into the organization.

38
Objectives of personal management in AP Dairy Development Co-operative
Federation Ltd.,

The object of the personal management in Andhra Pradesh dairy development

co-operative federation limited is to promote the effectiveness of the people employed
in the organization in performing their allotted tasks in an atmosphere of high morale
and co-operative relation with the objective of attaining productivity and profitability
consistent with social responsibilities. The recruitment rules and procedures are
formulated keeping the above broad objective in view.

The recruitment policy in Andhra Pradesh dairy development co-operative

federation limited encompasses the following objectives.

1. To introduce professionalism in different cadres.

2. To select the right man in the right place as per the specification: if
necessary training support may be extended to mold the new recruits to
the organizational needs.
3. To position the right person in the tie, which involves careful
succession planning.
4. To infuse new blood at different levels at a certain percentage to check
and inbreeding and create a spirit of competition in the organization.
5. To develop in them a sense of dedication and commitment to the
organization.
6. To evolve schemes for attracting and retaining competent personnel in
the organization.
7. To inculcate a sense of social outlook in fulfillment of the various
directives issued by the Government.

Recruitment and Selection Procedure in KDMPMACU Ltd., VIJAYAWADA

Recruitment : Recruitment procedure in Vijaya Dairy is done through giving paper

ads, short lists the applications conducting personal interviews and final interview by
the board of members and sees the resumes and selects the suitable candidates by
sending them call letters to their houses.

39
Selection: Selection procedure in Vijaya Dairy is by short list of applications. On the
basis of qualification, age, on humanitarian grounds, characteristics in resume, nature
of duties. The Selection in Vijay diary can also be done for the new retirements and
promotions.

The structure of the manpower is divided into three categories as indicated below.

a. EXECUTIVE

1. Top Management Chairman and Managing Director and

Functional Directors

2. Senior Management General Manager Deputy

General Manager
3. Middle Management Deputy Manager Cadre Officer
4. Junior Management Junior Officer Section
Officers Management Trainees.

b. STAFF

1. Supervisory Supervisors assistant Supervisors

2. Clerical Assistant Stenographers Typist
3. Other non Technical Security Fire Services Transport
Other staff.
c. WORKMEN

1. High skilled
2. Skilled
3. Semi-skilled
4. Unskilled.

PROCEDURE FOR RECRUITMENT:

40
 a) When post are advertised on all India basis in leading News papers as well as
important regional dailies, such advertisement contain particulars regarding:

1. Name of the posts and number of posts.

2. Pay scale of the posts with admissible allowances and higher start in case
of candidates with exceptional qualification experience.
3. Nature of vacancy, weather temporary / permanent etc.,
4. Qualification
5. Experience required
6. Minimum and maximum age limits.
7. Reservation of posts for SC, ST and relaxation as per rules.
8. Admissibility of Travelling allowance
9. Terms of appointed and Nature of selection.
10. Mode of applying for the posts.

GENERAL PRINCIPLES:

1. It is the sole responsibility of the personal recruitment, conduct written

tests, arrange interviews and follow up further action.
2. Merit and experience of selection of candidates.
3. All appointments against permanent posts will be made subject to
probation, the probation period will be one for officers and staff and six
months for workmen.
4. The competent authority to approve selections, will as a rule pay due
regard to the recommendations of the selections committee.
5. In accordance with the instruction received from the government of India
from time the percentage of reservation are made in recruitment.
6. All appointments are subject to prior verification of character and
antecedents confidential reports and subject to medical fitness.
7. Generally in the case of every selection, a reserved list is preferred so that
as and when vacancy arises in that particular category in future,

41
 appointments may be made from the reverse list there by avoiding
repetition of the hole procedure of the whole procedure of recruitment
every time.
8. The recruitment action is to be completed with in the periods specified
there under as far as possible.

 Vacancies to be filled in through internal advertisement 30

days.
 Vacancies to be filled in through employment exchange 45
days.
 Vacancies to be filled in through advertisement 60 days.

Recruitment & Selection

Recruitment:

Any organization whether a business organization or an industrial enterprise

needs four important i.e., Money, Material, Men, & Machine not only for its growth
and future development but also even for its continuance and survival. Since
Management is getting things done through the efforts of these people, manpower
management has also become a difficult task in fact without the productive efforts of
human being, materials, and resources would be of no use. It even controls the
application of other resources. For the efficient use of all the resources, the
employment of a suitable human force is essential. Human resources management is
concerned with this aspect of the essential. Recruitment represents the first contact
that a company makes with potential employees.

Meaning & Definition of Recruitment:

42
Recruitment is the most important function of personnel administration. Recruitment
is understood as the process of searching for and obtaining applicants for jobs, from
among whom the right people can be selected. Theoretically, recruitment process is
said to end with the receipt of applications, in practice the activity extends to the
screening of applications so as to eliminate those who are not qualified for the job.

Edwin & Fillippo:

In the words of Edwin & Fillipo “Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the organization”.

According to this definition recruitment is a prospecting job where

organizations make searching for prospective employees but in practice prospective
employees for also seek out organizations like organizations seek out prospective
employees. Therefore, the job of dependent on timing otherwise, recruitment will not
be successful.

Recruitment Policy:

Every organization should formulate an effective recruitment and selection

policy. But in practice, most organizations have no define clear-cut recruitment policy
and proper man power planning. Recruitment decisions are taken on ad hoc basis
depending on the circumstances. These ad hoc policies and procedures shall
adversely affect the success of the firm and its productivity.

A second recruitment policy should consist of the following five elements:

1. Identification of recruitment needs

2. Preferred sources of recruitment
3. Criteria for selection and selection techniques
4. Cost of recruitment
5. Role, if any assigned to the union in the formulation and implementation
of recruitment and selection policies.

43
 Importance of recruitment:

The general purpose of recruitment is to provide a pool of potentially qualifies job

candidates. Specifically, the purposes are to:

 Determine the present and future requirements of the firm in conjuction with
its personnel-planning and job-analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of the selection process by reducing the number
of visibly under qualifies or overqualified job applicants.
 Meet the organization’s legal and social obligations regarding the
compositions of its workforce.
 Begin identifying and preparing potential job applicants who will be
appropriate candidates.
 Increase organizational and individual effectiveness in the short term and long
term.

An effective approach to recruitment can help a company successfully compete for

limited human resources. A recruiting program helps the firm in at least four ways:

 Attract highly qualified and competent people.

 Ensure that the selected candidates stay longer with the company.
 Make sure that there is match between cost and benefit.
 Help the firm create more culturally diverse work-force.

Recruitment process:

As stated earlier, recruitment refers to the process of identifying and attracting

job seekers so as to build a pool of qualified job applicants. The process comprises 5
interrelated stages: 1. Planning, 2. Strategy development, 3. Searching, 4. Screening,
5. Evaluation

Personnel Job Employee

Planning analysis Requisition

44
 Searching Applic Screening
Potenti To
Job Recruitment
activation ant al hires
selection planning
vacancies “selling” pool
-Numbers
-Message
-Types
-Media

Strategy Application Evaluation

development Population and
–where control
-how
-when

Objectives of recruitment:

 To attract people with multi-dimensional skills and experiences that suit the
present and future organizational strategies.
 To induct outsiders with a new perspective ot lead the company.
 To infuse fresh blood at all levels of the organization.
 To develop an organizational culture that attracts competent people to the
company.
 To search for talent globally and not jst within the company.

Sources of Recruitment:

Each source has its own merits & demerits. The pictorial representation of various
sources of recruitment is made in given below.

Sources of Recruitment

Internal sources External sources

1. Present employees 1. Professional or trade Associations

2. Employee referrals 2. Advertisement

45
 3. Former Employees
4. Previous Applications
3. Employment exchange
4. Campus Recruitment
5. Walk-ins and write-ins
6. Consultants
7. Contractors
8. Displaced persons
9. Radio & Television
10. Acquisitions and mergers
11. Competitors
12. E-Recruiting

Internal Recruitment:

Internal recruitment seeks applicants for positions from those who are
currently employed. Internal sources are:

 Present employees:

Promotions and transfers from among the present employees can be a good
source of recruitment. It may also help to track persons who have the potential for
further training or those who have the right background for the vacant positions.

 Employee referrals:

This can be a good source of internal recruitment. Employees can develop

good prospects for their families and friends by acquainting them with the advantages
of a job with the company, furnishing cards of introduction, and even encouraging
them to apply. Many employees know from their own experiences about the
requirements of the job and what sort of persons the company is looking for.
Employee referrals can be a good source of recruitment. When employees recommend
successful referrals, they are paid monetary incentives which are called “finder’s
fees”.

 Former Employees:

Former employees are also an internal source of applicants. Some retired

employees may be willing to come back to work on a part time basis or may

46
recommend someone who would be interested in working for the company.
Sometimes, people who have left the company for some reason or the other are
willing to come back and work.

 Previous Applications:

Although not truly an internal source, those who have previously applied for
jobs can be contacted by mail, a quick and inexpensive way to fill an unexpected
opening. Although “walk-ins” are likely to be more suitable for filling unskilled and
semi-skilled and semi-skilled jobs, some professional openings can be filled by
applicants to pervious jobs.

Internal recruitment advantages:

 It is less costly.
 Candidates are already oriented towards company.
 Organizations have better knowledge about the internal candidates.
 Enhancement of employee morale and motivation.
 Good performance is rewarded.

Internal recruitment disadvantages:

 It perpetuates the old concept of doing things.

 It abets raiding.
 Candidates’ current work may be affected.
 Politics play a greater role.
 Morale problem for those not promoted.

External sources:

External sources far outnumber. Specially, sources external to a firm are

Professional or trade Associations, Advertisement, Employment exchange, Campus
Recruitment, Walk-ins and write-ins, Consultants, Contractors, Displaced persons,
Radio & Television, Acquisitions and mergers, Competitors.

47
 Professional or trade Associations: Many associations provide placement
services for their members. These services may consist of compiling job
seekers’ lists and providing access to members during regional or national
conventions. Further, many associations publish or sponsor trade journals or
magazines for their members.

 Advertisement: This is a very common and effective method of bringing in

candidates from outside. The employer puts up an advertisement in the news
paper either in the classified advertisement column or in the form of display
advertisement. The name of the post educational qualifications, experience in
the relevant field of activity, salary etc., are given in the advertisement. This
method is generally suitable for finding out skilled personnel.

 Employment exchange: In our country, the Government runs employment

exchange. In western countries, employment counsels and private employment
exchanges are popular. The employment exchange can help the employers to
find out suitable personnel in our country these exchanges are very helpful to
procure unskilled and semi-skilled workers. In our country the employment
exchange (compulsory notification of vacancies) Act 1959, provides for
compulsory notification of vacancies to the employment exchange before
filling the vacancies by the employers in public and private sectors but
unfortunately our employment by private sector undertakings in India.

 Colleges, Universities & Institute placement services (campus selections):

Some progressive employers maintain a close contact with the universities,
colleges, vocational institutions and management institutions for recruitment
to various jobs. It is easier to mould the fresh graduates hence they follow the
well known principle “catch the young” this practice has several points its
credit. This method is widely practiced in our country.

 Walk-ins and write-ins: The most common and least expensive approach for
candidates is direct applications, in which job seekers submit unsolicited
application letters or resumes. Direct applications can also provide a pool of
potential employees to meet future needs.

48
  Consultants: ABC consultants, Ferguson associates, Human resource
Consultants, head hunters, Analytic consultancy bureau, Aims management
consultants and the search house are some among the numerous recruiting
agencies. These and other agencies in the profession are retained by
organizations for recruiting and selecting managerial and executive personnel.

 Contractors: Contractors are used to recruit casual workers. The names of the
workers are not entered in the company records and, to this extent, difficulties
experience in maintaining in permanent workers are avoided.

 Displaced persons: Sitting and implementation of a project in an area would

result in displacement of several hundred inhabitants. Rehabilitating the
displaced people is a social responsibility of business. Such people are a
source of recruitment, not only for the project which caused the displacement,
but also for other companies located elsewhere.

 Radio & Television: Radio and television are used but sparingly, that too, by
government departments only. Companies in the private sector are hesitant to
use the media because of high costs and also because they fear that such
advertising will make the companies look desperate and damage their
conservative image.

 Acquisitions and mergers: Another method of staffing firms is a result of the

merger or acquisition process. When organizations combine into one, they
have to handle a large pool of employees, some of whom may no longer be
necessary in the new organization. As a result of merger or acquisition,
however, new jobs may be created as well. Both new and old jobs may be
readily staffed by drawing the best-qualified applicants from this employee
pool.

 Competitors: Rival firms can be a source of recruitment. Popularly called

poaching or raiding. This method involves identifying the right people in rival
companies, offering them better terms and luring them away.

External recruitment advantages:

 Benefits of new skills, new talents and new experiences to organizations.

49
  Compliance with reservation policy becomes easy.
 Scope for resentment, jealousies, and heartburn are avoided.

External recruitment disadvantages:

 Better morale and motivation associated with internal recruiting is denied to

the company.
 It is costly.
 Chances of creeping in false positive and false negative errors.
 Adjustment of new employees to the organizational cultural takes longer time.

Assessment and improvement of Recruiting:

The recruitment activity is supposed to attract the right people at the right
time. It is concerned with attracting those whose personalities, interests, and
preferences will most likely to be matched by the organization and who have the
skills, knowledge, and abilities to perform adequately. Recruitment practices vary
from one organization to another. Some organizations resort to centralized
recruitment and some others to decentralized recruitment. Both the system has their
merits and demerits. Hence the management has to weigh both the merits and
demerits of each system before taking a final decision about centralizing or
decentralizing the recruitment. Normally organization do not face difficulty in
finding adequate employees for manual, clerical sales and general run types of work.
But they often do have a problem in obtaining the professionals and managerial talent
they require. The growing complexity and sophistication of technology has meant that
increasing numbers of professionals and managers are needed to run our modern
enterprises. Manpower managers must constantly review improves methods of
recruitment and sources manpower supply.

Any method source which is highly effective at present may prove to be quite
ineffective later on in view of changed situations. Man power managers should also
attempt to improve their recruitment system. The results assessment or problems
phased during the recruitment process may themselves indicate the need for the
improvement of the program. A method to improve recruiting is to look at the
enterprise as a candidate would and taking appropriate measures to improve its image.

50
Further, recruitment activity should be integrated with the human resource plans of
the organization.

Selection:

Selection is the process of picking individuals (out of the pool of job

applicants) with requisite qualifications and competence to fill jobs in the
organization. Recruitment and selection are the two crucial steps in the HR process
and are often used interchangeable. There is, however, a fine distinction between the
two steps. While recruitments refer to the process of identifying and encouraging
prospective employees to apply for jobs, selection is concerned with picking the right
candidates from a pool of applications. Selection, on the other hand, is negative in its
application in as much as it seeks to eliminate as many unqualified applicants as
possible in order to identify the right candidates. As stated in the previous chapter, the
term recruitment is widely used to refer to the whole process of employee hiring.

Essentials of selection procedure:

The selection process can be successful if the following requirements are satisfied:

1. Someone should have the authority to select. This authority comes from the
employment requisition, as developed by an analysis of the work-load and
work force.
2. There must be some standard of personnel with a prospective employee may
be compared i.e.,
3. A comprehensive job description and job specification should available before
hand.
4. There must be a sufficient number of applicants from the required number of
employees may be selected.

Significance of the Selection Process:

Selection of personnel to man to organization is crucial, complex and

continuing function. The ability of an organization to attain its goals effectively and to
develop in a dynamic environment largely depends upon the effectiveness of its
selection program. It right personnel are selected, the remaining functions of
personnel management become easier, the employee contribution and commitment
will not effective. If the right person is selected, he is a valuable asset to the

51
organization ad it faulty selection is made the employee will become a liability to the
organization.

Selection process:

Selection is a long process commencing from the preliminary interview of the

applicants and ending with contract of employment. In practice, the process differs
among organizations and between two different jobs within the same company.
Selection procedure for senior managers will be long-drawn and rigorous, but it is
simple and short while hiring shop-floor workers.

Selection Procedure

External environment

Internal environment

Preliminary Interview

Selection Tests
Rejected
applicants
Employment Interview

Reference and
52
background analysis
 Selection Decision

Physical examination

Job offer

Employment Contract

Evaluation

Preliminary interview:

In this step applications received from job seekers would be subject to scrutiny
so as to eliminate unqualified applicants. This is usually followed by a preliminary
interview the purpose of which is more or less the same as scrutiny of applications,
that is, elimination of unqualified applications. Security enables the HR specialists to
eliminate unqualified job seekers based on the information supplied in their
application forms.

All the applications so received will then be divided in to two categories.

1. Applications of the candidates who have the required educational

qualifications.
2. In applications who do not have the required qualifications.

This type of sorting out of applications will help the personnel manager to reject
the applications of the candidates who are not suitable for appointment. The rejected
applications are later informed by sending a letter of regret. The candidates who have
the required qualifications are then called for a preliminary interview.

Blank application forms should be:

53
 1. Applications should be as brief as possible.
2. The question should be so drafted as to obtain adequate information
3. They should cover only those points, which are absolutely essential for job
success.
4. All unnecessary questions should be avoided.

Selection tests:

Job seekers who pass the screening and the preliminary interview are called
for tests. Different types of tests may be administered, depending on the job and the
company. Generally, tests are used to determine the applicant’s ability, aptitude and
personality. Ability tests assist in determining how well an individual can perform
tasks related to the job. Some of the commonly used types of tests and the purpose for
which they are discussed below:

 Performance tests: The simplest and perhaps the most obvious type of testing
procedure is the performance testing in which the applicant is asked to
demonstrate his ability to do the job.
 Intelligence test: Many companies use general intelligence tests under the
assumption that quick-learning, alert, bright people, can learn more quickly
any job in compensation with those who are less well-endowed. However,
developing of accurate and reliable intelligent test need professional expertise.
 Aptitude test: An aptitude test measures the potential ability of a candidate to
learn a new job. Psychologists have developed a large number of specialized
aptitude tests, such as clerical, mechanical, spatial relationship and manual
dexterity, abilities and skills which seek to predict the likelihood that an
applicant can learn a certain type of job effectively.
 Personality test: These tests seek to assess an individual’s motivation,
adjustment to the stresses of everyday life, capacity for inter-personal relations
and self-image. These are expressed in terms of the relative significance of
such traits within the person as self-confidence, ambition, decisiveness,
optimism, patience, fear and distrust. The most popular personality tests are of
the pencil-and-paper variety.
 Situational test: The aspects of both performance and personality testing are
combined in situational tests to observe how job applicants react to stressful

54
 but realistic real-life situations. This technique is applied in leaderless group
situations. Several candidates for managerial positions are presented with a
problem that requires group collaboration.

Employment interview:

The next step in the selection process is employment interview. An interview

is conducted at the beginning and at the end of the selection process. The emphasis
here is on the latter.

Interview is a formal, in-depth conversation conducted to evaluate the

applicant’s acceptability. It is considered to be an excellent selection device. Its
popularity stems from its flexibility. It allows a two-way exchange of information, the
interviewers learn about the applicant, and the applicant learns about the employer.

Reference and background checks:

Many applications request names, addresses and telephone numbers or

references for the purpose of verifying information and perhaps, gaining additional
background information on an applicant. Although listed on the application form,
references are not usually checked until an applicant has successfully reached the
fourth stage of a sequential selection process. When the labor market is very tight,
firms sometime hire applicants before checking references.

Previous employer, known public figures, university professors, neighbors or

friends can act as references. Reference checks serve two important purposes. One
purpose is to gain insight about the potential employee from the people who have had
previous experience with him/her. The second purpose for reference checks is to
assess the potential success of a prospect.

Selection Decision:

After obtaining information through the preceding steps, selection decision-the

most critical of all the steps-must be made. The other stages in the selection process
have been used to narrow the number of candidates. The final decision has to be made
from the pool of individuals who pass the tests, interview and reference checks. The

55
view of the line manager will be generally considered in the final selection because it
is he/she who is responsible for the performance of the new employee. The HR
manager plays a crucial role in the final selection.

Physical examination:

After the selection decision and before the job after offer is made, the
candidate is required to undergo a physical fitness test. A job offer is, often,
contingent upon the candidate being declared fit after the physical examination. The
results of the medical fitness test are recorded in a statement and are preserved in the
personnel records. Obviously, reasons for a physical test is to detect if the individual
carries any infectious diseases, physically fit to perform the work and etc.,

Job Offer:

The next step in the selection process is job offer to those applicants who have
crossed all the previous hurdles. Job offer is made through a letter of appointment.
such a letter generally contains a date by which the appointee must report on duty.
The appointee must be given reasonable time for reporting. This is particularly
necessary when he or she is already in employment, in which case the appointee is
required to obtain a relieving certificate from the previous employer. Again new job
may require movement to another city which means considerable preparation and
movement of property.

Contracts of Employment:

After the job offer has been made and the candidates accept the offer, certain
documents need to be executed by the employer and candidate. One such document is
the attestation rom. This form contains certain vital details about the candidate which
are authenticated and attested any him/her. There is also a need for preparing a
contract of employment. The basic information that should be included in a written
contract of employment will vary according to the level of the job.

Placement & Induction:

56
Placement: Placement means the placing of the selected candidate in a job with the
other workers.

 Collecting details about the employee.

 Matching between sub-group profile & individual profile
 Construction the employees profile
 Comparing sub-group profile with job finally profile.
 Assigning the individual to the job finally
 Assigning the individual to specific job after further counseling and
assessment.

Induction: The induction function follows placement step induction is concerned

with the problem of introducing/orienting a new employee to the organization and
to the procedure, rules and regulations.

But systematic course of induction should cover the following:

 Brief history of the company. Products its place in industry present of

various departments.
 Personnel policy regarding discipline education and training and
promotion, holidays method of computation and the date of payment of
salaries and wages.
 The rules of working, safety health regulations.
 Introduction to the new employees won department and a detailed
summary of the departmental work.

Evaluation of Selection program:

The broad test of the effectiveness of the selection process is the quality of the
personnel hired. A firm must have competent and committed personnel. The selection
process, if properly done, will ensure availability of such employees. How to evaluate
the effectiveness of a selection program? A periodic audit is the answer. Audit must
be conducted by people who work independent of the HR department.

Selection as a source of competitive advantage:

57
 The role of selection in an organization’s effectiveness is crucial for at least, two
reasons. First, work performance depends on individuals. The best way to improve
performance is to hire people who have the competence and the willingness to work.
Second, cost incurred in recruiting and hiring personnel speaks volumes about the role
of selection. Here is one instance to prove how expensive recruitment has become.

Role of selection in organizational efficiency:

Employee selection plays a vital role in achieving organizational efficiency

due to the following reasons:

 Organizational efficiency is mostly determined by the productivity.

Productivity in its turn is mostly influenced by the employees contribution.
 Organizational efficiency is influenced by production of high quality products,
rendering superior service to the customer. Human resources are the most vital
resources in producing quality products and rendering the best service to the
customers.
 Human resources are the knowledge, machine, technology, marketing, finance
etc., in the soft ware industry.

Ways to Minimize Selection Errors:

1. Be prepared to devote significant time and resources to the hiring process.

2. Use appropriate selection techniques successfully to ensure that people hired
will meet or exceed their expectations.
3. Rely on several assessment procedures rather than on just one. No one method
is infallible. Using a variety of methods will provide more data and increase
the chances of success.
4. Conduct structured in-depth interviews. Structured interviews have a higher
success rate than others.
5. Involve all those who are concerned in the selection process.

58
6. Conduct a potential problem analysis on final candidates. A potential problem
analysis is an attempt to anticipate any difficulties that might occur if a person
were hired.
7. Keep accurate records. Ensure that relevant data are collected and are used in
assessing the validity, cost effectiveness, and reliability of the selection
process.

1. Are you satisfied with the Recruitment & Selection Procedure?

Description No. of Respondents Percentage

Yes 94 94

No 6 6

Total 100 100

59
 Employee’s satisfaction regarding the Recruitment & Selection Procedure.
120

100

80
Respondents
60 Percentage

40

20

0
Agree Disagree

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 94% of the employees are satisfied and

 6% of the employees are not satisfied with following of this selection
procedure. The selection procedure is the correct for the selection the potential
candidates for the required job. It is show in the above graph

2. Do you feel that your organization is well prepared to meet today’s

challenges?

Description No. of Respondents Percentage

YES 100 100%

NO 0 0%

Total 100 100

60
 Employees feel about their organization is well prepared to meet todays's
challenges
120

100

80 Respondents
Percentage
60

40

20

0
Agree Disagree

Interpretation: The above chart elicits the level of significance of the respondents with
respect to their working experience with KDMPMACU ltd., Vijayawada

 100% of the Employees feel about their organization is well prepared to meet
today's challenges. The every employee has confidence on their organization. It
is show in the above graph.

3. How do you feel about interview panel?

Description No. of Respondents Percentage

Excellent 32 32

good 43 43

Satisfactory 15 15

poor 10 10

Total 100 100

61
 Employee feel about interview panel.
120

100

80
Respondents
60 Percentage

40

20

0
Excellent good Satisfactory poor

Interpretation: The above chart depicts the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 43% of the employees are feel good

 32% of employees feel excellent and
 15% of employees are satisfied
 But 10% of employees are not feel good in interview panel. It is shown above
in graphical.

4. How do you know about Openings in organization?

Description No. of Respondents Percentage

Friends 15 15

Internet 40 40

News Papers 35 40

Others 10 5

Total 100 100

62
 How the employee come to know about Openings in organization.
120

100

80
Respondents
60 Percentage

40

20

0
Friends Internet News Papers Others

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 40% of the employees are known through Internet

 35% are through News paper and
 15% of the employees are through friends and
 10% people are through the others. It is shown above in graph.

5. Your organization prefers multi dimensional skilled people.

Description No. of Respondents Percentage

Agree 86 86
Disagree 14 14

Total 100 100

63
 The organization prefers multi dimensional skilled people.
120

100

80
Respondents
60 Percentage

40

20

0
Agree Disagree

Interpretation: The above chart describes the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 86% of the employees agreed preferring multi dimensional skilled people

 But 14% of the employees disagreed. It is shown above in graph.

6. Are you satisfied with your salary?

Description No. of Respondents Percentage

Yes 68 68

No 32 32

Total 100 100

64
 How employee feel with the salary what he offered from the company.
120

100

80
Respondents
60 Percentage

40

20

0
Yes No

Interpretation: The above chart depicts the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 68% of the employees are feel happy with the salary what he offered from the
company
 But 32% of employees are not happy with the salary offered from the
company. It is shown above in graph.

7. Employee experience is an added advantage for your organization?

Description No. of Respondents Percentage

Strongly Agree 35 35

Agree 20 20

Neutral 25 25

Disagree 10 10

Strongly Disagree 10 10

65
 Total 100 100

Experience is an added advantage for your organization

120

100

80
Respondents
60 Percentage

40

20

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: The above chart describes the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 Mostly 35% of the employees are strongly agree

 25% of employees are agree 25% of employees are neutral
 But 10% of the employees are disagree
 And 10% of employees are strongly disagreeing. Its graphical representation is
shown above.
8. Do you prefer to recruit freshers?

Description No. of Respondents Percentage

Strongly Agree 5 5

Agree 10 10

Neutral 50 50

Disagree 25 25

Strongly Disagree 10 10

66
 Total 100 100

Prefer young blood

120

100

80
Respondents
60 Percentage

40

20

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: The above chart elicits the level of significance of the respondents with
respect to their working experience with KDMPMACU ltd., Vijayawada

 5% of the employees strongly agreed to recruit fresher’s

 And 10 % of the employees agreed
 But 50% of the employees are neutral
 And 25% of employee are disagree and the remaining 10% of employees are
strongly disagree because of that they were be selected though reference
directly. From the above information they may gave more preferences to
testing of the employee’s talents and ability through interviews. Its graphical
representation is shown above.
9. What should be the company’s main source of recruitment?

Descriptions No. of Respondents Percentage

Employment Bureau 10 10

Direct Verification 30 30

Third Party Verification 40 40

Placement agency 15 15

Others 5 5

67
 Total 100 100

company’s main source of recruitment

120
100
80
60
40
Respondents
20 Percentage
0

rs
u

y
nc
ea

tio

tio

he
ge
ur

ca

ca

Ot
ta
tB

rifi

rifi

en
en

Ve

Ve

em
m

ct

rty
oy

re

ac
Pa
pl

Di

Pl
Em

ird
Th

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 The Company main source of recruitment is 40% through third party

verification
 30% through direct verification
 15% through Placement agency
 And 10% through Employment Bureau
 And 5% through others. It is show in the above graph.

10. What should be the best recruitment sources according to your preference?

Description No. of Respondents Percentage

Internal Recruitment 50 50

External Recruitment 40 40

Both 10 10

Total 100 100

68
 Best recruitment sources according to employee preference.
120

100

80
Respondents
60 Percentage

40

20

0
Internal Recruitment External Recruitment Both

Interpretation: The above chart elicits the level of significance of the respondents with
respect to their working experience with KDMPMACU ltd., Vijayawada

 The best recruitment source according to employee preference is 50% through

internal recruitment
 40% through External recruitment
 And 10% through both. It is show in the above graph.

11. Did you fully know about the company policies before joining in this
company?

Description No. of Respondents Percentage

Yes 20 20

No 80 80

Total 100 100

69
 Employee known the company policies before joined in this company
120

100

80
Respondents
60 Percentage

40

20

0
Yes No

Interpretation: The above chart depicts the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 20% of the employee fully aware of the company policies before joined in the
company
 But 80% of the employees not aware of the company policies. It is show in the
above graph.

12. Training is necessary in your organization for an experienced person?

Description No. of Respondents Percentage

Strongly Agree 35 35

Agree 20 20

Neutral 25 25

Disagree 10 10

Strongly Disagree 10 10

Total 100 100

70
 Training is necessary in your organization for an experienced person
120

100

80
Respondents
60 Percentage

40

20

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 Mostly 35% of the employees are strongly agree

 25% of employees are agree
 25% of employees are neutral
 But 10% of the employees are disagree
 And 10% of employees are strongly disagree. Its graphical representation is
shown above.

13. Is your company using Print media (advertisement) for recruitment?

Description No. of Respondents Percentage

yes 58 58

No 42 42

71
 Company using advertisement for recruitment
120

100

80
Respondents
60 Percentage

40

20

0
yes No

Interpretation: The above chart describes the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 58% of the employee’s are accepted and the remaining

 42 % of the employees are not accepted for this. Its graphical representation
is shown above.

14. Do you follow “Problem solving techniques” to the candidates for testing of
their talents/skills for the required job?

Description No. of Respondents Percentage

yes 68 68

No 32 32

72
 Problem solving techniques to the candidates for testing of their talents/skills for the
required job
120

100

80
Respondents
Percentage
60

40

20

0
yes No

Interpretation: The above chart describes the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 68% of the employee’s are accepted and the remaining

 32 % of the employees are not accepted for this. Its graphical representation is
shown above.

15. Training sessions are necessary after completion of the recruitment and
selection process?

Description No. of Respondents Percentage

Strongly Agree 30 35

Agree 25 20

73
 Neutral 20 25

Disagree 15 10

Strongly disagree 10 10

Total 100 100

Any training session after completion of the recruitment and selection process
120

100

80
Respondents
60 Percentage

40

20

0
Strongly Agree Agree Neutral Disagree Strongly disagree

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 30% of the employee’s are Strongly agree

 25% of employees are agree
 20% of employees are neutral
 And the remaining 15% of the employees are not agree
 And 10% of employees are strongly disagree for this. Its graphical
representation is shown above.
16. Influence of trade unions on your recruitment policies?

Description No. of Respondents Percentage

High 5 5

Low 65 65

74
 Moderate 10 10

Not responding 20 20

Total 100 100

Any training session after completion of the recruitment and selection process
120

100

80
Respondents
60 Percentage

40

20

0
High Low Moderate Not responding

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 5% of the employee’s are agreed that there is high influence of trade unions.
 65% of employees are said that there is low influence.
 10% of employees are said that there is moderate influence of trade union
 And 20% of the employees are doesn’t answered. Its graphical representation
is shown above.

17. Who form recruitment policies in your organization?

Description No. of Respondents Percentage

Company 12 12

75
 C.E.O. 4 4

Personnel Administration 84 84
Dept.
Total 100 100

Formantion of recruitment policies in organization

120
100
80
60
40
20
0 Respondents
Percentage
.

.
ny

pt
E.O
pa

De
C.
m

n
Co

tio
ra
ist
in
dm
lA
ne
on
rs
Pe

Interpretation: The above chart represents the level of significance of the respondents
with respect to their working experience with KDMPMACU ltd., Vijayawada

 12% of the employee’s are said that Company forms the recruitment policies.
 4% of employees are said that C.E.O. forms the recruitment policies.

 And 84% of the employees are answered Personnel Administration

department forms the recruitment policies.

FINDINGS:

 94% of the employees are satisfied regarding the recruitment and selection
procedure.

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  Employees feel confidence about their Organization. It is well prepared to
meet today’s challenges.
 Many of the employees are feel about interview panel is good and Excellent.
 Most of the employees come to know about their organization through news
papers and Internet.
 This organization prefer multi dimensional skilled people
 68% of employees are satisfied with their salary.
 In this organization they do not prefer fresher’s to recruitment.
 Main sources of recruitment through third party verification and direct
verification.
 They prefer internal recruitment.
 Many of the employees know about the company policies after joining of the
company.
 35% of the employees are strongly agreed training is necessary for an
experienced person in the organization.
 This organization uses the advertisement for recruitment.
 68% of the employees are feel problem solving techniques are necessary for
testing the talents/skills for the required job.
 Low influence of trade unions in recruitment policies.
 30% of the employees strongly agree training is necessary after completion of
the recruitment and selection process.
 Personnel and Administration department forms recruitment policies.

Suggestions:

77
Consequent to the above observations and findings through the responses of the
employees. The following suggestions could be made.

 It is suggested to the company to make an effort to know the reason

why 6% of employees are not satisfied with recruitment policy and
overcome it.
 It would be suggestible to the organization that, the recruitment may be
made through external sources which can contribute to decreasing the
bias in the procedure of Recruitment and selection.
 The company may avoid selecting experienced employees and make
an effort to take candidate with zero experience which definitely can
help in increasing the organizational standards.
 The company can improve the process of the recruitment and selection
procedure by involving Trade Union’s while designing the procedure
for recruitment and selection.
 Training is mostly necessary for non experienced person because it is
helpful for his career development, thus, the company may concentrate
on increasing the focus in training and development.
 A proper communication in charge would be set for the stream lining
of the interviews at each location, where the interviews will be held for
various posts.

SUMMARY

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The Andhra Pradesh dairy development co-operative federation (APDDCF) had its
genesis in 1981, with a three-tier structure. It had primary societies at village level;
unions are the district level and the federation as an apex body at the state level.
Organized dairying in Krishna commenced in 1965 with integrated milk project
assisted by UNICEE A milk conversation plant fi rs t of its kind in South India was
commenced in April'1969. The organization of dairy industry took basic changes
beginning with industry department. It was integrated with project (1960) Dairy
development (1991), A.P. Dairy development co-operative Federation. Krishna
District Milk producers Co-operative Union got registered in 1983 district have 450
organized dairy co-operative societies with 67,000 member's producers. There are 340
producers' association centers.

Human resource management is relatively new and developed as a part of

management. HRM is the management is the task of dealing with human
relationships, molding and developing the human behavior and attitude towards the
job and organizational requirements. Recruitment function helps the organization to
develop a pool of prospective human resources. It is difficult for the HR manager to
employ the suitable people out of the pool. Infect, many organizations face critical
problems in choosing the people. Selection techniques and methods reduce the
complexities in choosing the right candidates for the job.

The data collected to examine the recruitment and selection of highest

management in the organization was based on 16 broad item which included the
organizational policy, influence of trade unions, salary levels, other policies and
practices, image of the organization, social responsibilities, type of recruitment policy,
source of recruitment and selection suggestion for a sound in charge of four
specialized areas. The samples respondents opined that both the direct recruitment and
indirect recruitment methods were followed at Krishna District Milk producers Co-
operative Union as per the requirements. The vacancies filled up by internal
candidates in a 50:50 portion. They follow the problem solving techniques for testing
the skills of the applicants and employee experience is also concern for recruitment
and selection.

It could be concluded thus that union was fair enough as far as their personal
social background is concerned. Both the direct and indirect methods of recruitment
79
were followed in their recruitment policy appropriately. The selection process would
be more objective and fair, if such influences are given ago, but at least at the highest
management level to enhance the efficiency of the organization and the managers
must concentrate on the motivation aspect and see that they get motivated and also try
to motivate their subordinates through required measures to put their best efforts into
achievements of the objectives of the organization.

80