Kitex organisational study

1

Part I – Industry related
Profile of the Organization

2

Human beings have relied on clothing and food to survive ever since they appeared on
earth. The clothing or textile industry thus began very early in human history. While early people
used their hands to weave and knit cotton or wool into fabric or cloth, it was not until the late
18th and early 19th centuries that the Industrial Revolution changed the way of making clothes.
People started to use various kinds of energy to supply power. Nevertheless, cotton, wool and
cellulose fibres remained the major raw materials. Since the Second World War, the production
of synthetic fibres developed by the petrochemical industry has increased tremendously
After the exclusion of global quota scheme, the textile industry is flourishing at high
speed. The world is on a new corridor of industrial revolution. Analysts are anticipating more
expansion with latest technologies in Textile Machineries. The textile machinery manufacturing
hubs like China, Germany, Italy, Switzerland and India have already jumped in gigantic
competition to craft and bid best technologies in textile machineries. Demand for sophisticated
machines that produce high quality cloth is increasing.
1. TEXTILE INDUSTRY PROFILE
1.1 GLOBAL SCENARIO
The Textile & Clothing trade in the global market is fast changing with the scaling up of
uses of textiles in diverse areas. Asian countries including India play a dominant role in the
international trade of the global market. China has the major share in textile and clothing trade in
the international market etc. Both Bangladesh and Hong Kong have a significant share.
However, India is still on the back seat. It is reported that Asian counties export most of textile
and apparel to Europe and North America and USA etc.
Asian countries are gaining in textile trade due to lower costs compared to African,
European and South American countries. As per the Global Textile and Apparel Industry: Vision
2015, World textile and apparel trade is expected to reach US$805bn by 2015 from US$650bn in
2010. At present few countries like Bangladesh, Thailand, Cambodia, Sri Lanka, Pakistan
contribute major share in Forex earnings of their country from Textile and Clothing trade, though
their share in the world market is not very significant.

3

In the year 1995, WTO had renewed its MFA and adopted Agreement on Textiles and
Clothing (ATC), which states that all quotas on textile and clothing will be removed among
WTO member countries. Despite the early onset of the trend towards globalisation in the global
textile and clothing industry, international trade in the sector was and still is heavily regulated.
For instance, up to the end of 2004, the WTO Agreement on Textiles and Clothing (ATC), which
superseded the Multifibre Arrangement (MFA), was in force. Both limited the global trade in
textiles and clothing by imposing quotas. Although now these have been abolished. However the
level of exports in textiles from developing countries is increasing even if in the presence of high
tariffs and quantitative restrictions by economically developed countries. Moreover the role of
multifunctional textiles, eco-textiles and customized textiles are considered as the future of the
textile industry.
1.2 INDIA TEXTILE INDUSTRY
Textile industry in India is the second largest employment generator after agriculture. It
holds the significant status in Indian asset provide. It is the one of the earliest industry come into
existence in India and it account for more than 50% of total exports. It was predominantly
unorganized industry even a few years back, but the scenario started changing after the economic
liberalization of Indian economy in 1991. The opening up of economy gave the much-needed
thrust to the Indian textile industry, which has now successfully become one of the largest in the
world.
India textile industry largely depends upon the textile manufacturing and export. It also
plays a major role in the economy of the country. India earns about 27% of its total foreign
exchange through textile exports. Further, the textile industry of India also contributes nearly
14% of the total industrial production of the country. It also contributes around 3% to the GDP of
the country. India textile industry is also the largest in the country in terms of employment
generation. It not only generates jobs in its own industry, but also opens up scopes for the other
ancillary sectors. India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.
Indian textile industry can be divided into several segments, some of which can be listed as
below:

4

 Cotton Textiles
 Silk Textiles
 Woolen Textiles
 Readymade Garments
 Hand-crafted Textiles
 Jute and Coir
India textile industry is one of the leading in the world. Currently it is estimated to be around
US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current
domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from
the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in
2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also
expected to increase from 4% to 7% within 2012.
STRENGTHS
 Vast textile production capacity
 Large pool of skilled and cheap work force
 Entrepreneurial skills
 Efficient multi-fiber raw material manufacturing capacity
 Large domestic market
 Enormous export potential
 Very low import content
 Flexible textile manufacturing systems
WEAKNESSES
 Increased global competition in the post 2005 trade regime under WTO
 Imports of cheap textiles from other Asian neighbors
 Use of outdated manufacturing technology
 Poor supply chain management
 Huge unorganized and decentralized sector
 Govt. Regulations

5

 High production cost with respect to other Asian competitors
CURRENT FACTS ON INDIA TEXTILE INDUSTRY
 India retained its position as world’s second highest cotton producer.
 Acreage under cotton reduced about 1% during 2008-09.
 The productivity of cotton which was growing up over the years has decreased in 2008-
09.
 Substantial increase of Minimum Support Prices (MSPs).
 Cotton exports couldn't pick up owing to disparity in domestic and international cotton
prices.
 Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

1.3 TEXTILE INDUSTRY IN KERALA
The first cotton textiles mill was established in 1883 in Kallai near Kozhikode by P.S
Santhappa Chettiyar and M. Guptan Namboothiripad, known as Malabar Spinning and Weaving
Mill. The commercial production was started in 1887. Later in 1976 the mill was taken over by
Government of Kerala and handled over to Kerala state textiles corporation. The second mill
presently called Parvathi Mills Ltd. Was started in 1884 by James Darragan, an English man
using 19 acres of land donated by the Maharaja of Travancore. In 1888, the mill was sold to
another British industrialist named AT VIN. In 1932 the management was taken over by Kerala
Textiles Corporation. In April 1974, the mill was nationalized under sick textiles undertaking
(nationalization) Act and was made a unit of National Textiles Corporation (NTC) Limited
Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd., another oldest mill was
established in 1903 as a Private Limited Company. Balarama Iyyer started it. Later due to
mismanagement and labor trouble, company was liquidated in 1954.
The factory was gutted down due to fire in 1959 and spinning production was completely
stopped. The Government of Kerala purchased this unit as a result of liquidation and public
auction in 1972, with the modest start of these mills, the number of cotton textile mill rose to 31.
The government of Kerala has announced in state assembly on March 29, 1994, its Willingness

6

to start 5 more spinning mills, one each of Kazargod, Kozhikode, Trissur, Kottayam and
Malapuram along with the commissioning of corporative spinning mill at Alappy with a spindle
capacity of 6000 spindles.
Cotton textiles industries are concentrated in district of Trissur and Palakkad followed by
Ernakulum and Kannur. These four districts together account for nearly 3/4
th
of the spinning
mills in Kerala. The numbers of existing composite mills are quite low i.e., only four in number,
its growth during the last 10 years is nil. Due to the unprofitable nature of composite mill,
Malabar spinning and weaving mill discontinued its weaving operation and concentrated on
spinning only. Calicut modern spinning mill once turned sick is now taken over by a financially
sound third party and found earnings before the last, decade. There are 7 cotton textile mills in
Trissur including one composite mill. Kottayam stands last in the list with only one state owned
mill.
There are 16 private mill in Kerala of which 14 are spinning mills and the rest 2 are
composite mills. The national textile corporation has got under it, 4 spinning mills and 1
composite mill. The corporate sector owns only 2 spinning mills. In Kerala the Trissur
corporative spinning mills with an installed spindle capacity of 12,000 spindles is the smallest
mill followed by Kathayee Cotton Mills Limited with 14,860 spindles.
Another welcome feature was that a 100% export oriented unit, Past Pin India Ltd.
Started commercial production at Palakkad. These units are located at Palakkad near Tamilnadu
border. Another corporative mill, Allepey Corporative spinning mill at Kayamkulam is yet to be
commissioned. Out of the 31 mills in Kerala, 14 are private sector, 8 under National Textiles
Corporation, 4 under Corporative Sector and 5 under K.S.T.C.
2. ORGANIZATIONAL PROFILE
2.1 INTRODUCTIONS TO ANNA GROUP OF COMPANIES
More than three decades age in 1968, when Mr.M.C.Jacob founded the Anna Aluminum
Company, he made a break with the past. Belonging to an affluent family of plantation owners,
he ventured in to the risk world of manufacturing industry and hoped for the best, while working
very hard to make his maiden venture to a great success. Today the group is involved in
manufacturing of aluminum sheets, circles, vessels and utensils, spices, and fabric, school bags,

7

garments and marine exports etc. The ‘Anna’ range vessels and utensils are highly popular in
domestic market and in the Middle East, U.S.A, Africa, and Australia. The group of turnover is
around 200 cr.
Anna-Kitex group is one of the leading industrial groups in the state of Kerala employing
more than 12,500 personnel for the past 40 years. The group is engaged in the manufacture of
diverse products like garments, textiles, school bags, travel bags, umbrellas, aluminum utensils,
kitchen appliances, branded spices, curry powders and ready to eat food which is marketed in the
famous brands of Kitex, Scooby-day, Anna aluminum, Chackson and Saras. The Anna-Kitex
group is a pioneer in the fashion industry Anna Group, Where quality - the buzzword - has built
success.
Anna range of vessels and utensils are highly popular in the Middle East, USA, Africa
and Australia. The organization comes under Anna Group are as follows:
a. Kitex Limited
b. Anna Aluminum Company (Chackson)
c. Sara’s spices
d. Kitex Garments
e. Scoobeeday products pvt ltd

2.2 KITEX LIMITED
Anna Group’s weaving unit, Kitex Limited was established in 1975. The company is
engaged in the production of fabrics made of cotton and other blends, grey cloth, bed sheets and
lungies. Through the years, the company has carved a niche for itself in this highly competitive
industry with its tradition of world class quality.
Kitex is engaged in production of fabrics made of cotton and other blends, grey cloth, bed
sheets and lungies are available in four various types-Executive, Medium Super, Medium and
Economy all are priced differently. Kitex white gives us an array of white dhothies single as well
as double. It becomes with streaks of colors and gold to add to the looks our dhothies. We also
have beautiful and wide range of bed sheets under the label of Sweet Dreams. Through the years
the company has carved a niche for itself in this highly competitive industry with its tradition of
world class quality.

8

Kite has a well-organized production department and is committed to cent percentage
quality in all the production process. In the production department Kitex has 383 power looms
and 22 automated loom. There are about 390 workers in the plant. They use both automated and
power looms in the production process. The annual sales range is in between US $10 million –
US $50 million. Kitex follows a line organizational structure and their span of management is
narrow due to this they have the advantage like reinforcing authority relationship by emphasis of
status given, preventing cross communication etc. Kitex is going in for a major expansion plan to
augment the production capacity. At the dawn of the new millennium Kitex entered in to the
luggage and baggage industry under the brand name of scoobeeDay. The Company achieved an
all time high performance on account of both Revenue and profits. While the Gross revenue
touched Rs 456 crores which was up by 42% and the PBT went up to Rs 88 crores which went
up by 100% when compared to last year. This was possible only by the high level of
modernization, selection of right technology, correct product mix, a concerted efforts by the
whole team in management, all employees and whole hearted support provided by our banks,
other financial institutions, esteemed customers and suppliers. Based on the above excellent
performance and in order to reward the shareholders of the Company at the appropriate time for
the full support extended by them all these years, Board of Directors is recommending a dividend
of 100%. The Company has capitalization worth Rs 74 crores as on the year 2013-14 and the
major portion was utilized for expansion in its Process plant. Major International buyers like
KOHLS and THE CHILDRENS PLACE also supported the Company by placing new and
substantial orders with us. The Company now plans to take its performance to next level by
further modernization, creating new markets in Europe and US by implementing niche products
using high tech and time saving machinery and devices, improvement in quality of its employee
by training, research and development.
The Company has also plans to introduce its own brand in USA in the coming year, and
the ground work for the same has already commenced, which we expect will bear fruit in the
following years. The Company was upgraded to A(-) by ICRA during this financial year. The
Company’s share price at the stock market has touched an all-time high of Rs.111 compared to
an average of Rs.60 in the previous year. With the order books getting bulkier, Kitex is confident
that it will become the leading manufacturer in the WORLD, in the INFANTWEAR APPAREL
SEGMENT by the end of 2015 calendar year.

9

2.3 VITAL STATUS
Name Kitex Limited
Address Kizhakkambalam, Aluva
Registered Kizhakkambalam
Nature of the incorporation Privet Limited Company
Nature of Business Manufacturing of cotton textiles & bag
Nature of Product Industrial Products & Consumer Products
Brand Name of the Product Kitex
Total Built up area 16, 50,000 sq.feet, 500 modern looms,
20million sq.meter of cotton, & cotton Blends.
Employment potential 1800
Production Capacity 3,500 sq.per day
Total Capital Employed Rs 3, 39, 01,060
Annual Sales Range 200 crores
Growth Steady
Founder Sri: M.C.Jacob
Chairman Mr Bobby.M.Jacob
Director Mrs: Mini Bobby Jacob
Managing Director Mr Sabu jacob
Auditor M/s Kolath & Co
Banker Federal Bank, ICICI, Canara Bank

10

2.4 PRODUCT DETAILS
2.4.1 LUNGIES
a. Executive
Superior quality lungies available in various designs and colors.
b. MediumSuper
Comfortable lungies you would love to drape. Available in various designs and color
combinations.
c. Medium
Experience freedom and coolness with Medium range of lungies; comes to you in
warm colors and in various designs
d. Economy
After a hard day’s work, jump into lungi to ease your tension, to sooth your senses
and to feel relaxed.

2.4.2 DHOTHIES
a. Smartline
White single dhothy with streaks of either dark red or dark blue or dark green
lines, which can be worn equally at home and outdoors.
b. Smartline
Cream color single dhothy with streaks of Gold Jerry lines for special occasions.
c. Ready wear
Plain white single dhothy you'll love to drape. The anywhere, anytime wear.
d. Samrat
Pure cotton white double dhothy with lines in 5 different colors to choose.

2.4.3 BED SHEETS
Following are the types of bed sheets
a. Sweet dreams 50
b. Sweet dreams 60
c. Sweet dreams double sheet

11

d. Dbl.Side 60 bed sheet + 2 pillow covers
e. Solitude double sheet
f. Sweet dreams king knight
g. Duplex / solitude bed sheets + 2 pillow covers
h. Soft dreams king size + 2 pillow covers
i. Sweet dreams DS + 2 pillow covers

2.4.4 SCOOBEE PRODUCTS
At the dawn of new millennium the new generation was presented with an innovative school
bag from Kitex, the main offshoot of Anna Group. ScoobeeDay bags are compactly designed
with unique features that make it durable, colorful, comfortable and easy to carry. The bag
features anti strain shoulder padding’s and acupressure buds specially designed to minimize
the strain on the back and shoulders.
Following are the types of bags:-
a. School Bags
b. College bags
c. Kinder garden bags
2.4.5 TRAWELLDAYBAGS
The company has ventured into a new segment of bag production as TREWELLDAY bags.
This wide ranges of luggage and baggage products with latest trends and design and is made
from imported raw materials. The bags are priced premium and has good market share. The
price range is from Rs.650/- to Rs.3000/-. The range includes
a. Trolley bags
b. Travel bags
c. Business bags
d. Lap- top bags
e. Back- pack bags.
f. Beauty case bags

2.4.6 DAGO BERT SHIRTING AND SUITING
Dago Bert Shirting and Suiting are woven from the finest cotton, using the toughest materials

12

that are soft to touch when draped on your body. Featuring the most contemporary designs
along with the latest weaving techniques, Dago Bert Shirting and Suiting are available in
variety of colors and shades.

2.4.7 AGNA AND ADONIS INNER WEAR
Kitex has made its foray into the untapped lingerie segment with brand names Adonis and
AGNA. ADONIS-inner wear for men and AGNA- inner wear for ladies, with Anna group
promise of quality, both comes competitively priced and ensure complete value for money.
ADONIS a range of refined vests and briefs and AGNA a range of Bras and Panties ensure
seamless fit and finish. Both brands use specially processed fabric which feels smooth and
healthy even on the soft skin of newborns. It provides ample space for stretching, bending and
rigorous exercise without tearing.
2.5 Competitors of Kitex Ltd
1. Zodiac clothing Ltd
2. Page industries
3. Lovable lingeri ltd
4. KPR Mills
5. Pearl Global Ltd
2.5.1 ZODIAC CLOTHING LTD
Zodiac - one of the largest shirt companies in the world, designs, manufactures and sells
quality shirts to the best brands and stores across the globe. The company is in the business of
men's fashion for the last 58 years and is benchmarked in India for providing discerning
customers the finest quality clothing.A 300+ crore, vertically integrated, design and marketing
driven clothing company, Zodiac employs approximately 3500 people in 16 offices and 7
manufacturing plants located across India, UAE, Germany, USA and U.K.
2.5.2 PAGE INDUSTRIES
Page Industries Ltd., located in Bangalore, India are the exclusive licensees of JOCKEY

13

International Inc. (USA) for manufacture and distribution of the JOCKEY® brand
Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh ,Nepal and UAE.
Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture,
marketing and distribution of the Speedo brand in India
The Company was set up in 1994 with the key objective of bringing the world renowned brand
"JOCKEY®" to India. It commenced operations in the year 1995 with the manufacturing,
distribution and marketing of Jockey® products. Its promoters, Genomal family, who have
been associated with JOCKEY International Inc. for 50 years as their sole licensee in the
Philippines. Page Industries became a public company in March 2007 and is quoted in the
Bombay Stock Exchange and the National Stock Exchange of India.
2.5.3 LOVABLE LINGERI LTD
The Company, incorporated in the year 1987, is one of India’s leading women’s innerwear
manufacturers. Our products include brassieres, panties, slips / camisoles, homewear,
shapewear, foundation garments and sleepwear products. On December 26, 1995, our
Company was licensed the brand “Lovable” from Lovable World Trading Company, USA.
Subsequently, by an agreement dated December 23, 2000, the Company acquired the brand
“Lovable” from Lovable World Trading Company, USA on an exclusive basis for the
territories of India, Nepal, Sikkim and Bhutan. The innerwear products manufactured under
the brand “Lovable” cater to the premium segment market in India.
2.5.4 KPR MILLS
KPR Mill Limited is one of the largest vertically integrated Apparel manufacturing companies
in India producing Yarn, Knitted Grey & Dyed Fabric and Readymade Garments.The Yarn
division has 3, 53,088 spindles with a production capacity of 90,000 MT per annum. With the
most modern machinery of International Standards, KPR produces Combed, Grey Melange ,
Carded & Compact yarn meant for apparels of world’s Leading Brands. Fabric division is
equipped with high speed automatic circular knitting machines that can knit 21,000 MT per
annum of different kinds of fabric. Its Fabric Processing unit has a capacity to process 9,000
MT per annum with trendsetter ETP.

14

2.5.5 PEARL GLOBAL LTD
A multinational ready to wear apparel business . They currently operate in 6 strategic locations
& 2 continents, with a turnover of 270 Million USD (Yr. 2010-11), leveraging the strengths of
each country in creating a strong value for our clients. Pearl Global ltd provides global supply
chain solutions for the fashion industry Anywhere & Anytime. They have complete control on
the entire value chain from design & development, manufacturing and sourcing up to pre retail
services, warehousing & delivering at the customers door step on a call on and call off
basis.Pearl Global is truly a Multi Country, Multiproduct, Multi continent, Multi Domain
company which is successful in Integrating multiple cultures values and people therefore being
truly global.
2.6 RESEARCH & DEVELOPMENT
2.6.1 SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE COMPANY.
a) Quality Up gradation
b) Developing wide range of products
c) Productivity enhancement
d) Quality Control Management
2.6.2 BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D
a) Increase in production and capacity utilization
b) Repeat order from customers due to consistency in quality
2.6.3 FUTURE PLAN OF ACTION
a) Cost-efficiency in manufacturing operations through better methods and techniques of
productions
b) Increasing range of production.
c) Development of new markets.
2.7 CORPORATE SOCIAL RESPONSIBILITY
Making a meaningful difference for the Kitex Group, reaching out to the under
privileged is ingrained into its ethos and part of its heritage. These values transcend business
interests and move into grappling with the "quality of life" challenges that under-served
communities face and work towards making a meaningful difference to them. The Board of
Directors, Management and all the employees subscribe to the philosophy of ‘compassionate

15

care’. We believe and act on the philosophy of generosity and compassion, characterized by a
willingness to build a better society. Kitex vision for CSR, is to transform Kizhakkambalam
Panchayath into the best among the 978 Panchayaths in the state. In the past year, the
Company undertook the CSR initiatives at the grassroots level that impacted many lives.
2.7.1 HEALTH CARE.
Health and Medical Check-up Camps were conducted, in which about 3800 families
participated. Free medicines were distributed and follow up medical facilities were extended to
463 major/minor operations at some of the leading hospitals in the district.
2.7.2 DRINKING WATER
Safe drinking water was provided to some of the backward colonies located in and near the
Kitex factory. Six bore wells were provided in these colonies with provision for water storage
tanks with a total capacity of 1.02 lakh liters
2.7.3 HOUSING
Renovation work for 40 houses located within the backward colonies in Kizhakkambalam
Panchayath was undertaken and more are under consideration.
2.7.4 AGRICULTURE
Participative Farming was undertaken on 300 acres of farmland with the full co-operation of
farmers in and near the Kitex factory. Multi-crop harvesting was carried out through the year.
2.7.5 EDUCATION
At the beginning of school calendar year of 2013, the Kitex Group distributed 2278 bags to
school children in the backward areas of Ernakulam District with an effort to extend primary
education to financially backward students.
2.7.6 FOOD SECURITY PROGRAMME
Kerala witnessed a heavy monsoon that debilitated life in many areas. During the last
monsoon, the Kitex Group distributed 65 Tons of food materials which included
rice,pulsesand cereals to the needy in the food season. This benefit was extended to about 500
families on a regular basis.

2.8 SWOT ANALYSIS OF KITEX LTD
The basic objectives of SWOT Analysis is to provide a frame work to reflect on the ability to

16

overcome barriers and to avail of opportunities emerging in the changing environment, the
diagnosis of strength and weakness can be fruitfully on if the environment factors and market
conditions are considered always with the internal capabilities. SWOT analysis is important
tool to find strength, weakness, opportunities and threats. These factors reveal the internal and
external factors which affects the company.
Strength, weakness, opportunities and threats are the elements or key factors that influence the
survival and development of any organization. The followings are the SWOT analysis of Kitex
Ltd.

STRENGTH
 Largest manufacturer of textile products in Kerala
 Pioneers in their segment as a brand
 Effective distribution channel
 Products are benchmark for other company
 Better employee-employer relationship
 No trade union
 ISO certification
 Highest market share for lungies.

WEAKNESS
 Lack of modern weaving machines and quality checking machines
 Huge variations in the incentives with change in season
 The organization does not have any ERP in place.
 Non utilization of full capacity.
 Less usage of modern ways of transaction
 Market Share of Dhotis and School bags on a lower side.

17

OPPORTUNITIES
 India with a large cotton cultivation has a great scope in textile market
 Growing market demand about 15-20% per annum
 Increase opportunities in export market due to globalization
 Availability of land for expansion
 Scope of expansion to rural areas.

THREATS
 Sales of some products depend up on seasons
 Presence of reputed competitors in the market
 Kitex faces a great threat from China in the textile market
 Efficiency is low with the use of old machineries
 Medium market coverage
 The change of style is very frequent in textile industry.

18

Part II –A Structural –
functional analysis of the
Organization

19

ORGANIZATIONAL STRUCTURE

Chart 1

GM
PRODUCTION
MANAGER
QUALITY
MANAGER
PURCHASE
MANAGER
STORE
MANAGER
DGM
FINANCE
DGM
MARKETING
HR
MANAGER
SUPER
VISOR
FOREMAN
WORKE
RS
QUALITY
INSPECTOR
ASSISTANT
INSPECTOR
CHECKER
PURCHASE
OFFICER
OTHER
STAFFS
STORE IN
CHARGE
SECURITY
ASSISTANT
ACC. MNG
OFFICER
EXECUTIVE
OTHER
STAFFS
ASSISTANT
MANAGER
SALES
OTHER
STAFF
ASSISTANT
MANAGER
WELFARE
OFFICER
OTHER
STAFFS
CHAIRMAN

20

Kitex Ltd follows the line or military organizational structure. Managing Director is
the top level, other functional managers followed by him. The span of management in the
organization is narrow span. The main advantage of this type of control is that close
supervision, clear chain of command, and close control and fast communication between
subordinates and supervisors. The model of the organization design is mechanistic model.
An efficient management system plays a dominant role in the success of all business
units. It is this section that declares the levels of output, its product in pattern, pricing
technique, marketing style and even the mode of conduct to its executives. Managing director
who are the representatives of the shareholders take the important decisions of the group
concerns. They perform strategic planning and policy making functions of Kitex ltd. For their
help General Manager, top executives of the company management are appointed. General
manager is responsible for the smooth, efficient and productive functioning of the units from
the production to the marketing. The middle level management comprises of production
manager, marketing manager, financial manager, personnel manager and purchase manager,
and store manager and quality controller.
Average Qualification of Employees
a. Top Level: Professionally qualified having sufficient industry experience.
b. Middle Level: Graduation and above with experience in the relevant areas (both
technical and managerial)
c. Junior Level / First line management: Diplomas / industrial training certification in the
textile industry and experience.
3. FUNCTIONAL DEPARTMENTS
3.1 LINE FUNCTIONS
3.1.1 FINANCE DEPARTMENT

21

Chart 3.1 showing the structure of Finance Department

The finance department is headed by the general manager having sufficient industry
experience in the field of finance, taxation, company law and financial management. Finance
is the life blood of business. Finance department consists of all the managerial activities of
raising funds and effective utilization. Finance department lies in the decision making area of
investment, finance and dividend. Recruitment and promotion in production are the activities
of H.R. department, but the payment of wages, salaries and other benefits are done by the
finance department. Finance department in Kitex Limited is headed by the finance manager.
He decides from when and where to acquire funds, to meet firm’s investment needs. He should
determine the proportion of debt to equity. The finance should strive to achieve the optimum
capital structure for the organization.
Major Functions of Finance Department
1) Recording of the day today transactions- accounting.
2) Preparation of various statements regarding stock, receivables etc., which are to be
submitted to various authorities like bankers, insurers etc.
3) Planning and controlling of the expenses/ funds for productions.
4) Approving and making payments to different parties creditors/ suppliers.
5) Receiving payments from customers/dealers in specified time.
Deputy General Manager
Finance
Finance Manager
Accounts officer- Taxation Accounts officer- General
Accounts executives Accounts executives

22

6) Raising short term loans/credit from banks and other financial institutions.
7) Preparation of sales budget/revenue budgets and expenditure budget on a quarterly
basis
8) Preparation and maintenance of costing records.
9) Preparation of fund flow and cash flow statements for every month.
10) Timely preparation and filing of financial records.
11) Preparing and filing of quarterly and final income tax returns.
12) Preparation/implementation of cost reduction and cost control programs.
In addition to the above mentioned work the following reports are prepared by the following
department.
a) Annual report containing past performance, current financial figures, profit/loss A/C,
Balance sheet and other financial statements.
b) Half yearly & quarterly report.
c) Monthly report to top management on financial performance of the company including
Sales achieved, production achieved and profit generated.
d) Conduct and Co-ordination of internal and statutory audits.
e) Perpetual stock verification & asset verification.
f) Investment analysis/ feasibility studies in production supply order received contracts
etc.
The finance manager is responsible for maintaining funds at an optimum level. Care is taken to
see that working capital never gets blocked anywhere at any time. The company meets
working capital requirements usually by bank overdrafts and other short term loans on the
security of stock of finished goods.

23

The company has a total investment of Rs.5 crore and annual turnover of around 114.5crore
from the sale of grey fabric and finished products.
Year ended 31st March, 2014
(Rs in lakhs)
Year ended 31st March,
2013
(Rs in lakhs)
Total Income 45555.36 32100.85
Profit before Depreciation 9786.53 5266.21
Profit before Tax 8818.53 4404.08
Profit After Tax 5736.88 2937.68
Transfer to General Reserve 600.00 300.00
Table 3.1
PERFORMANCE REVIEW
Kitex achieved an all time high performance both in turnover and its profits. The Gross
revenues touched Rs.455.55 crores which is 42% more than last year and the Profit before
depreciation and taxes recorded was Rs.97.87Crores which is also up by 86% as compared to
previous year. Your company coupled high level of modernization with,concentrated efforts of
both Management and employees, the whole hearted support of Banks, suppliers and
customers to attain these levels of performance. The earnings per equity share (of face value
Re. 1)for the year increased to Rs.12.08 from Rs.6.18 for the previous year.

DIVIDEND
Company recommend a dividend of 100% (One Rupee per Share of face value Re1/-) for the
year, (as against 80% for the previous year ended 31st March, 2013), subject to the approval of
the shareholders at the ensuing Annual General Meeting. An amount of Rs.6.00 crores has
been transferred to General Reserve as per the existing provisions of Companies Act 2013 read
with Companies Act, 1956 and rules thereunder.

CAPITAL EXPENDITURE
As at 31st March 2014 the gross fixed assets stood at Rs.23739.64 lakhs and net fixed assets
Rs.18120.61 lakhs. Additions during the year amounted to Rs.7363.99 lakhs, which include
addition to land and building for Rs.248.98 lakhs, plant & machinery and other assets

24

amounting to Rs.7115.01 lakhs.

FOREIGN EXCHANGE EARNINGS AND OUTGO
2013 - 14 (Rs in lakhs) 2012 - 13 (Rs in lakhs)
Earnings on account of Exports 32623.58 24808.90
Outgo on account of Import
& Expenditure
9450.21 2805.48
Table 3.2
3.1.2 PRODUCTION DEPARTMENT
Chart 3.2 showing the structure of Production Department

Production is the process by which raw materials and other inputs are converted into finished
products. The core of a production department is its conversion sub- department wherein
workers. Materials and machines are used to convert input into products and services. This
process of conversion is the heart of production function and is present in some form in all
organizations. New manufacturing processes are being introduced and existing ones are being
developed further for more improvement. Improvements in quality of products can be
achieved with a proper design that takes into consideration the products functional
Deputy General Manager
Production
Packaging Supervisor Quality Control Officer
Shift in Charge Supervisor
Packers
Workers
Assistant Checkers

25

requirements and its manufacturing aspects. The design process which takes proper care of
manufacturing process would be the ideal ones as it ensure a better product being made
available at economical cost. Production manager in Kitex is also known as weaving master.
In Kitex the plant layout followed is product layout which is also known as straight line layout.
It involves the arrangement of machines in a straight line. It has many advantages like low cost
of material handling, there will be product standardization. The company has a production of
about 18000 meters of grey cloth per day.
Functions of Production Department
 Design of the product
 Design of the production system
 Production planning and control
 Selection of location
 Layout of plant
 Selection of plant and equipment
 Research and development
The products manufactured by the company are industrial goods and consumer durable goods.
85% of the goods (grey cloths) are sold as such to other company or production units in the
textile industry where the same are converted into useful consumer durable textiles or
garments. 15% of the grey cloths manufactured by the company is converted into lungis,
dhoties, mulls and bed sheets. The conversion is done by various units at Coimbatore. The
conversion process includes bleaching, dying, re-sizeing, printing etc. After the work is done,
different varieties of goods are recollected, quality checked, packed and marketed by the
company.
Production Capacity Utilization and Modernization
The production department or factory has installed capacity of 383 power looms. 100%
capacity is utilized for production. In Addition to the power looms, the company has installed

26

22 modern looms. It is called sulzer looms. This is imported from Switzerland. The advantage
of these looms is high speed and more production than power looms. It is fully automated and
also high quality of goods is produced with the use of less manpower. The clothes produced by
modern looms have more width than those produced by power looms.
Modern sulzer looms are operated by highly qualified and highly experienced personnel. They
are hired from other textile mills and are paid well. Other workers work under the supervision
of these experienced workers. Ordinary power looms require 2 persons per loom whereas two
modern looms require only one person. This means that by the use of modern looms plenty of
labor expenses can be saved. Ordinary looms are also in the process of modernization and
automation. & 5% of the modernization work is completed.
Shifts
The company is undertaking production on job order basis. The production department
functions in 3 shifts:
1. 8 am to 4:30 pm
2. 4:30 pm to 1:30 am
3. 1:30 am to 8am.
Raw Materials Used
100% cotton yarn of different specification for different quality of grey cloth form the major
raw materials used in production. The other raw materials are sizing chemicals, starch and
adhesives. All these form direct materials for production. Indirect materials consist of different
consumable stores, spares and cleaning chemicals.
The company never faced any raw material shortage. This is due to the efficient supply chain
management. Scientific estimation of raw materials requirements and timely procurement of
raw materials. The purchase department plays an active role in the effective and timely
procurement of raw materials.

27

PRODUCTION PROCESS

Chart 3.3
There are two types of process in the textile industry- Weaving and Spinning. We can see that
yarns of various counts are manufactured. Weaving process consists of the manufacturing pure
cotton grey cloth from cotton yarn. In Kitex Limited, weaving is the main process. Output is
100% pure cotton grey cloth, which is manufactured from the textile industry. In Kitex, 85%
Pirn Winding
Wrapping
Sizing
Beam Drawing
Weaving
Checking
Rechecking
Folding
Recounting
Grading & Sorting
Bailing

28

of the sales come from the sale of lungis, mull, bed sheets, dhothies prepared from cotton gre
clyoth.
Production Process
The basic step in production process is the selection of good quality raw materials. This
selection is done with the help of both production and purchase managers. Kitex use corn type
of yarn for weaving because of its reliability. In Kitex 560 cones are re-arranged at the same
time. The following are the processes in Kitex;
1. Wrapping
Suitable beams are selected and by using the Wrapping machines, all sorts of impurities
present in the raw materials are removed.
2. Sizing
It is the process of strengthening the warp beam suitable for loom. This is done by using the
chemical mix which consists of Alp anole, water and other chemicals.
3. Pirn Winding
Rearranging the available yarn that is suitable for loom is done in this process. This is done
with the Pirn Winding machine.
4. Beam Drawing
It is the process of interconnecting the dropper, heels, reed etc. to the loom. This is done for
making designs, arranging space between warp and weft.
Weaving process begins after the end of these four processes.
5. Weaving
It is the process of interlacement of wrap and weft threads. After starting the process the
supervisors of concerned shifts checks the process. Weaving master and production manager
checks the process. In new sized clothes, weaving master, shift in charge, shift supervisor
directly watch test weaving. If any defect occurs during the process and is repeated then the

29

purchase department will be informed and after quality check, the sample will be rejected. For
weaving, Kitex uses 360 Simco Power Looms and 25 Automatic suzzler looms. The
peculiarity of the former is that it is shuttle loom and the latter is shuttle less loom.
6. Quality Check
Quality checking is functioning under the production department. One Quality Control Officer
and checker are there to check and see that proper quality is maintained. There are two types of
checking, they are;
a) First Piece Inspection
In every 30-100 meters of cloth produced. The quality checking unit collects a sample of cloth
and checks. If any type of defects occurs, then the Quality Control Officer reports to the shift-
in-charge. This is an immediate feedback of the production process.
b) Checking
Checkers checks the cloth. They mend the defects by prescribing the suitable corrections and
maintenances.
There are two types of products produced in Kitex, industrial products and consumable
products. Industrial products like grey cloth are sold to various garments manufacturers in
Mumbai, Bengaluru etc. Consumable products like mulls, bed covers, dhothies etc. are sold in
domestic as well as national markets and also in some international markets.
Production of grey cloth is done on the basis of order. If the order quantity is less, then the
department concentrates on consumer products such as lungis, dhothies etc. productivity
depends on the type of cloth, duration of process, quantity produced and other factors. The
budgeted production is 20000 meters of grey cloth per day but the actual production is only
18000 meters. The various factors which disables the unit from achieving budgeted production
are;
i) Failure in power supply
ii) Unexpected breakdown in looms.

30

To overcome these factors, the factory is provided with 200kv diesel generators and a well-
equipped maintenance department with efficient electrical and mechanical engineers. Unit
follows preventive maintenance mechanism. It has necessary tools and equipments, it replaces
worn out parts, lubricates the machinery on time and regularly checks its working.
7. Folding
After classification the fabric is folded by a folding machine and the meter age is counted and
marked
8. Recounting
The counted meter age is again recounted and assured. Then the fabric is sealed.

9. Grading and Sorting
In the grading department, the following operations are carried out- sorting/grading of grey
clothes and checking all technical conditions stipulated for fabrics of each style are strictly
satisfied. At the same time the piece length is measured and the production of fabrics per shift
is registered by cleaning the fabrics from fluff, thread ends, knots and tags by putting a speed
mark with a pen on the ends of the fabric piece indicating the fabric style, measure and grade.
10. Bailing (Packing)
The sorted fabric is packed in the bailed condition under the supervision on the basis of
quality. The standard packing size of one ball contains 1000 meters. For bailing, the company
has bailing process, which is efficient. After packing, the manufactured cloth is send to the
Kitex Plant in Coimbatore where many value addition processes are done on the cloth and
after making it ready for sales, they are sent back.
TOTAL QUALITY MANAGEMENT
The company has ISO certification. The company has given different equipment and
mechanism to ensure quality at different stage of production. It aims at maximum quality at
minimum cost. The management practice followed in Kitex, which is indeed innovative is the

31

practice of Total Quality Management. Total Quality Management journey started at Anna
Group on 6
th
June 2005. It is a long journey towards success. Quality means 100% quality in
speech, people, work, disciplines, surroundings, products etc. the company introduced 5 ‘S’
techniques for good housekeeping, as a part of TQM. 5’S’ technique is a Japanese technique. It
helps the company to,
 Improve productivity
 Save time
 Solve space constraints
 Improve morale of employees
5 S Techniques
1. SERI (SORTING)
 Segregate required, useable, re-workable and absolute items.
 Disposing unwanted items.
 Clearing off walkways.
(One picture is worth more than a 1000 words)
2. SEITON(SYSTEMATIZING)
 Use of labels and color codes for easy identification.
 Use of index for files, records, drawings etc. to facilitate retrieve ability.
 Plan storage with accessibility.
(A place for everything and everything in its place)
3. SEISO(SHINING)
 Inspect and clean the supply lines, go downs, scrap yards and gardens.

32

 Clean up workplace, machines and tools after use.
 Identify root causes of loud noise, vibration, heat buildup in the equipment and take
remedial action.
(Spic and span leads to zero break down)
4. SEIKETSU(STANDARDIZING)
 Developing standards.
 Establishing check procedure.
 Create visual controls.
 Devise ways and means to expose problems.
(Action speaks louder than words)
5. SHITSUKE(SELF DISCIPLINE)
 Developing action plan for maintaining the set standards.
 Give unambiguous advice/instruction to your work associates.
 Carry on 5’S’ activities as a matter of habit and enthuse its practice.
(Be a self-starter)
POLLUTION CONTROL
The company doesn’t have any pollutant products or bye products. The only pollutant
may be cotton particles that may get spread in the loom shed. To prevent this, the factory is
having sufficient humidifier to help the cotton particles settle on the ground. In addition to
this, the factory and premises are cleaned on a regular basis. The sound of weaving mills is
also causes pollution. The company provides sound deafening materials to the workers to
protect their ear drums.

33

RESEARCH & DEVELOPMENT

1. SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE COMPANY.
a) Quality Up gradation
b) Developing wide range of products
c) Productivity enhancement
d) Quality Control Management

2. BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D
a) Increase in production and capacity utilization
b) Repeat order from customers due to consistency in quality

3. FUTURE PLAN OF ACTION
a) Cost-efficiency in manufacturing operations through better methods and techniques of
productions
b) Increasing range of production.
c) Development of new markets.
3.1.3 PURCHASE DEPARTMENT
Chart 3.4 showing the structure of Purchase Department

Deputy General Manager- Purchase & Maintenance
Purchase Manager
Stores Manager
Store Assistants
Purchasing Executives

34

Kitex have an effective purchase department and its functions are to procure
materials, machines, and tools etc., at the right quality and quantity at the right time. The firm
has a centralized department structure which is headed by Purchase Manager, assisted by two
Purchase Officers and Purchase Assistants. The Purchase Manager has to report to the General
Manager and Managing Director. Its objectives are to make continuous availability of raw
materials and to make purchase competitive and wise at most economic price, to develop
alternative source of supply, to serve as information center on material knowledge relating to
price, source of supply, and mode of delivery etc. The purchase department has to purchase
good quality of materials to have a minimum possible wastage of materials and loss in
production. Purchasing is the most important function of materials management and starts at
the moment an order is placed, for the purchase of materials a substantial part of the
companies finance is committed , which affects the cash flow position of the company.
OBJECTIVES OF PURCHASE DEPARTMENT
 To make a continuous availability of materials so that there may be
uninterrupted flow of materials for production.
 To make purchase competitively and wish at the most economic prices
 To make the purchase in reasonable qualities and to keep investment in
materials at minimum.
 To develop relationship with supplier, which will ensure the best supply of
materials.
 To purchase proper quality of materials to have minimum possible wastage
of material and loss of production.
MATERIALS PURCHASED
The following are the major items of materials purchased by the company:
 100% of cotton yarn of different specification.
 Sizing chemicals :- Tapioca starch and Adhesives

35

 100m spares.
 Electrical equipment and accessories
 Packing materials and office stationary
PURCHASE PROCEDURE
(1) Purchase Indent:-
Indenter raise materials requisition note to stores department. If not available stores
department issues purchase requisition to purchase department and is documented in purchase
department.
(2) Enquiry:-
Purchase department sends enquiries to appropriate vendors on receipt of indent and they in
turn send quotations.
(3) Receiving Quotations:-
Quotations are checked by the managers of purchase and finance department and they check
the appropriate quotations.
(4) Preparation Of Competitive statements:-
Quotations are better tabulated a purchase department prepare the comparative statement and
send to intender.
(5) Approval:-
After studying all the details and analyzing the decisions relating to approval is taken by the
finance department.
(6) Issuing Purchase Order:-
The purchasing order is given relates to the needed quantity to the respective suppliers.
(7) Receiving And Inspection Of the Materials:-

36

After receiving the materials ordered, they are inspected to ensure the quantity of the
materials received.
(8) Checking and Passing of Bills:-
The materials are checked to see the quality of materials and the bills are passed for
payments. Before fixing the contracts for purchase, price variation clauses are included in
terms and conditions of purchase.
Factors Considering While Selecting Suppliers
 Manufacturing capacity
 Reliability of suppliers
 Financial conditions of suppliers
 Price quoted
 Quantity for which price quoted is applicable
 Terms of payment and delivery
3.2 STAFF FUNCTION
3.2.1 HUMAN RESOURCES DEPARTMENT

Chart 3.5
Deputy General Manager
Human Resources
Deputy H.R. Manager H.R. Assistant
Senior H.R. Officer Executives Executives
Executives

37

Now-a-days human resources are considered as one of the important assets of an organization.
Every successful company needs great people to make recruitment and retention. Companies
must find, new ways to engage the knowledge, experience and talents of employees to find the
hidden value to achieve strategic goals.
Kitex Ltd has a good human resource department and it maintains good relations
with the employees. This helped the company to achieve tremendous growth. All the employee
related activities are managed by this department.
Working time: 9 am to 5 pm
Saturday : 9 am to 4 pm
Functions
The main functions / role of personnel & Administrative Manager
i) Advisory Role Industrial Psychology and Sociology
ii) Operative and Service role
iii) Conciliators role
iv) Specialist advisory role
Or
i) Formulation of HRD functions and suggesting the HRD needs of the organization
ii) To find out ways and means of implementation of HRD function
iii) Monitoring the HRD activities of the organization
iv) Total commitment towards implementation of HRD
HRD DEPARTMEN T OF THE COMPANY IS BASED O N THREE ASPECTS;
a. Competency Building
This is usually done by three ways like, improving the knowledge of employees and
creating the right attitude in the mind of them. For this they will be given training and

38

development programs.
b. Culture Building
It is having a great importance, as right culture will create employee satisfaction. Every
employee of KITEX LIMITED loves to work in the organization because of good g culture
prevailing in the organization. Culture mainly indicates the good attitude towards
employees and vice versa.
c. Motivation Building
Enhancing the motivation of employees and thus enabling the organization to achieve its
goals is another inevitable function of this department. The employees are being motivated
by providing various monetary benefits and also morale boost like promotion etc. Industrial
relations are yet another major area coming under HRD department. And also good
relationships are maintained within the organization.
The Activities Normally Associated with This Department are:
(I) HR Planning
Human Resource Planning is understood as the processing of forecasting an organization’s
future demand for, and supply, of the right type of people in the right number. In Kitex Ltd,
the concerned department is always updating the list of people. (After all the preliminary
formalities).
The Importance of Human Resource Planning
a. Future Personnel needs
b. Coping with changes
c. Creating highly talented personnel
d. Protection of weaker sections
e. International strategies
f. Foundation of personnel function

39

g. Resistance to change and move
(II) Recruitment
Recruitment is a process of searching for and obtaining applicants for
jobs from among whom the right candidate can be selected. Recruitment
process is done after the job analysis and job design which specifies the taste and duties of job
and qualification expected from the respective jobholder.
In Kitex Ltd the Personnel department has a clear-cut recruitment planning. For this
they give advertisement in newspapers and other media. After collecting all applications,
departments sorts this applications and call up the right candidates for interview.
This process comprises of 5 interrelated stages. They are (i) Planning (ii) Strategy
development (iii) Searching (iv) Screening (v) Evaluation and Control. Also internal
recruitment is taking place in Kitex Ltd. This includes present employee, referrals, former
employees, and former applicants.
For the recruitment of office staff and managerial personnel, external sources like
advertisement in newspapers, employment weeklies etc., are used. Other sources are
advertisement in company’s website, campus recruitment, employee reference and resumes of
the candidates which the company passes, while selecting weaver trainees and helpers,
qualification along with sufficient experience in the industry is also required. They can directly
appear for interview. Sometimes selection order is on the basis of recommendation from
known persons. For skilled jobs like fitter, electrician, carpenter, instrument technician etc.,
information is passed through advertisement. For this experience in the respective field is a
good advantage.
(III) Interview and Selection
After screening test the candidates are called for an interview. For the post of Office Staff and
managerial position a written test is also conducted. For managerial positions various other
tests are also conducted with the help of experts in the field. The short listed candidates are
then interviewed. The interview panel consists of M.D, General Manager, Department head
and Administration Manager.

40

For the post of workman, interview selection is conducted usually on second Saturdays. The
Organization conducts walk-ins and written tests in all major towns in Kerala and inside the
organizations.
(IV) Probationary Period
After the selection process the selected supervisory and managerial position holders have to
undergo a probation period of 6 months. During this period monthly evaluation is done on the
basis of the following criteria.
1. Professional knowledge
2. Promptness
3. Dependability
4. Attitude towards supervisors
5. Attitude towards co-workers
6. Leadership and initiative qualities
7. Attendance and punctuality
8. General Ability
Grades are given, like satisfactory, unsatisfactory, outstanding and good. If a candidate gets
an unsatisfactory grade in consecutive months, he will be eliminated before the termination of
the probationary period. Confirmation is done only after the probationary period.
(V) Training and Development
Training and Development refers to the imparting of specific skills, ability
and knowledge to an employee. Successful candidates placed on the job need training to
perform their duties effectively. For the weaver trainees, the period is one year.
During the training period the trainers are given training in communication
skills, spoken English (how to face an interview) etc., on addition to the technical training.

41

Training program is conducted by the Kitex community college.
The company also conducts the job training program. Training program
includes morning and afternoon sections. The morning section (batch wise) theory classes are
given and in the afternoon section. Training program is conducted from 9 am to 5 pm. The
major curriculum involves personality development, technical program, communication
development etc. During the training period food and accommodation are provided by the
company.
After successfully completing the training program certificates are awarded to
the candidate. The key to the good employee relations program is the communication channel
that gives the employee access important information and an opportunity to express his ideas
and feelings. The supervisors are familiar with employment policies and the employees are
aware of their rights, this leads to lesson for misunderstanding.
(VI) Performance Appraisal
Yearly evaluation of performance is done for the employees. The evaluation
criteria for the managerial and supervisory levels are;
1) Conceptual skills, ability to
a) Anticipate
b) Plan with imagination
c) Innovation
d) Creativity
2) Decision making skills, ability to
a) Analyze
b) Solve problem
3) HR- Skills - ability to

42

a) Motivate
b) Communicate
c) To build team spirit
4) Organizational Skills - ability to
a) Organize own work
b) Organize others work
c) Delegate and control
5) Personal Characteristics
a) Grasp
b) Initiative and intelligence
c) Fairness in dealings
d) Adaptability
e) Reactions to discipline
6) Job Ability
a) Knowledge of his job
b) Attitude towards work
c) Willingness
d) Job performance
7) Integrity and Honesty
a) Honest
b) Determination

43

Criteria for yearly evaluation of employees up to the supervisory level.
1) Knowledge and accuracy of work
2) Attitude towards work
3) Ability to organize, plan and access/ guide juniors
4) Performance
5) Dependability and integrity
6) Drive and Leadership
7)

(VII) Employee Remuneration
Remuneration of employee occupies an important place. Remuneration is the
compensation; an employee receives in return for his or her contribution to the organization. In
Kitex Ltd, the organization provides all the remuneration insisted as per the Company’s Act,
1956. This comprise,
 Wages and Salary
 Incentive
 Non-monetary benefits
 Perquisites
(VIII) Wages and Salary
The company follows time rate system and piece rate system. The workers involved in
production of Grieg cloth are compensated according to the number of pieces of cloth
produced. Other plant workers are compensated as per the time spent by them in the plant.
(Packers etc...) For the office employees, salary is paid along with a pay slip, which contains

44

the details of the pay. At the time when the employee receives the salary, he should sign on the
copy of pay slip and it is filed in the department.The compensation package consists of basic
pay + DA + HRA + Conveyance+ Children’s education allowance.
Incentive
Besides the above package, the employee will get other incentives like production
incentive, Sunday-Monday incentive etc.
(IX) Employee Welfare Measure
In India labor welfare measures can be divided into statutory welfare measure and
non-statutory or voluntary welfare measure.
A) Statutory Welfare Measures
1) Accident Benefits
If the employee, who is covered under the employee’s state insurance scheme
(ESI), face an accident during the work, he will be paid benefits, as per ESI scheme.
If the employee is no covered under the ESI, the company will meet all expenses
and grant him special leave in case of any accident. They will also get benefit from the group
accident policy, taken by the company.
2) Annual Bonus
The company pays annual bonus to its employees based on the company’s
performance in the previous year.
3) Canteen
The company has separate canteen for male and female employees. For
drinking water, water coolers are installed in the company, wherever necessary. For the hostel
and canteen facility they provide, they charge an amount of Rs.400 each month.
4) Gratuity

45

Kitex Ltd. maintains a gratuity scheme for its employees who have completed
5 years of experience including the training period.
B) Voluntary Welfare Measures
i) Attendance bonus
ii) Uniform allowance
iii) Children’s education allowance
iv) Free tea and coffee for office staff
v) Funeral expenses on the death of family members of the employees
vi) Saving scheme for the employees
vii) Stands as a guarantee for the employees to buy vehicles and households on hire
purchase
viii) Leave: Earned leave for 15 days is granted to the employees. Maternity leave
for 12 weeks is also granted to the female employees
ix) Free accommodation is also granted to the female employees.
X) Industrial Relations
Industrial relation is concerned with the relationship between management and
workers. In Kitex Ltd. and all other Anna Group of Companies the management is very
conscious about maintaining good industrial relations between management and workers and
the role of regulatory mechanism helps in resolving any industrial dispute.
XII) Promotion
Promotion activities contribute to employee satisfaction and motivation. If
mishandled it leads to discontent, frustration, and skepticism among employees and culminates
in a high rate of labor turnover. In Kitex Ltd. within the limitation the personal department
lays down a sound promotional policy and ensures its implementation.

46

XIII) Transfer
Transfer involves a change in the job (accompanied by change in the place of the job)
of an employee without change in responsibilities or remuneration. For employees satisfaction
the personnel and administration department provide job rotation.
XIV) Separation
Layoffs, resignation and dismissals separate employees from their employer.
Separations are painful to both the parties and should therefore be administrated carefully.
They are:
 Layoffs – Temporary separation
 Resignation- Termination of employment at the instance of the employer
 Dismissal or discharge – Termination due to excessive absenteeism, serious
misconduct, false qualification statement, theft of company property.
XV) Hostel
In Kitex Ltd, organization provides separate hostel facility for the ladies and gents. It
includes canteen, accommodation and entertainment facility in common hall (television). For
the purpose of administration of ladies hostel, organization has appointed a hostel warden and
two assistant wardens and hostel staff. In every weekend the administration manager or
personal officer visits and check the facilities and functions of the hostel. Also annual day
celebrations are conducted for the employees.
XVI) Security
For the security and disciple in Kitex Ltd., the organization provides security officers
and a security staff. The main function of the security officer is to check the baggage and
carrier coming to the organization and the products delivery items from the package section.
They marks the quantity of the products coming in and going out, place, time etc

47

3.2.2 MARKETING AND ADMINISTRATION DEPARTMENT
Chart 3.6 showing the structure of Marketing and Administration Department

Marketing is the activity through which a company is able to find out its potential
customers and sell out its products and involves the integration of a number of activities
starting from conception of products and its profitable selling and consumption. Even if a
company is able to produce a large quantities of goods but not able to market them, the firm
cannot survive for long. Main purpose of business is to create customer and the various
processes involved in finding out customers and knowing their needs and wants and placing
goods in their hands is known as marketing process.
MARKETING DEPARTMENT OF KITEX
Marketing Department of Kitex is very efficient, it scans the environment, analysis
marketing opportunities, designs marketing strategy, implementing and controlling marketing
functions. It employs direct marketing strategy, avoiding intermediaries. Kitex enjoys large
Deputy General Manager - Marketing
Administration Manager Manager- E-commerce
Marketing
Marketing Manager
Administration
Executives Office Executives
Assistant Manager
Marketing Executives
Sales Staff

48

customer in core markets especially in South Indian market, it has high demand. It has more
than 2000 dealers spread all over Kerala.
MARKETING POLICY
The marketing policies of Kitex are in such a way that it does not entertain middlemen.
A direct marketing approach is adopted and all the dealings are direct. There are no stockiest
of wholesalers. It can be seen that by following this approach has more favorable conduction
in the market situation.
Marketing Functions Kitex has a dealer network of more than 2000 dealers who are spread all
over Kerala. It has sales all over Karnataka and Tamil Nadu. There are direct outlets in Kerala
and Tamil Nadu. Dealership are allotted only after assessing of credit worthiness, efficiency
etc. Dealers obtain the products upon order over the van of the company and also the products
are delivered either at go down or showroom.
MARKETING STRATEGY
Marketing department of Kitex is very vigilant of its environment and is also very
conscious of market potential, about their major competitors, company’s strategies, weakness
etc. As a result of stiff competition, the top management has appointed a General Manager in
the marketing and he looks over all the activities very efficiently.
Major competitors of Kitex are MCR, Janson, Angel, Ramraj etc. and they adopt various
marketing strategies like advertising in media using film stars like MCR using Mohanlal as
their brand ambassador. These companies also offer a wide variety of Karas and colors of
dhothies which attract customers. Their marginal price will be high when they sell to the
dealers. But in the case of Kitex the margin is very less. Also, the firm enjoys a good market
owing to its quality. In Kitex profit margin of products are 15-20%. Kitex also has a technical
competency. It has introduced new automatic weaving suzzler looms from Switzerland which,
except Janson, no other manufacturer has introduced.
MARKET SEGMENTATION
Customer’s preference varies with segments and different aspects. The marketing

49

segmentation procedure of Kitex mainly focuses on surveys. The Marketing Manager conducts
the survey process. The staff of R&D department helps in this process by conducting informal
interviews with focus group customers. This is done to gain a clear insight of their motivation,
attitude and behavior. Using the findings from these informal interviews, a researcher prepares
a formal questionnaire, which is administered to a sample of customers to collect data on the
following:
 Brand awareness and rating
 Product usage and pattern
 Demographic, physiographic and graphical details of respondents.
MARKETING MIX
It consists of everything a firm can do to influence demand for its product. Kitex also follows
the ideas of marketing mix, they are:
1. Place mix
Location of plant is one of the early decisions an entrepreneur has to make for earning
maximum profit. Location determines the survival as well as the prosperity of business in free
market economy. The unit is located in Kizhakkambalam, Aluva. The total extent of land is
around 1650000 sq. ft. It is well connected with the road. The availability of skilled and
unskilled labor is also a factor in selecting the location.
2. Product mix
The grey fabric produced is of finest quality and is mostly used for export purpose. They
provide grey fabric lungies, bed sheets, mull in varies quantities as per customer specification.
The Kitex product is reputed for its quality and free from weaving defects up to greater extent.
The special feature is that raw materials are passed through strict inspection.
3. Price mix
The company maintains stable price for a long period of time. Price of product
depends on the price of yarn. It maintains constant price and concentrates on quality of product

50

and so it requires less investment in advertisement and sales promotion and also a very well
formulating pricing policy is provided.
4. Promotion mix
To promote its products advertisements are used in Kitex. The basic function of an
advertisement is to influence and motive people to buy products. In Kitex various
advertisement agencies are called up on and a brief idea is given about what to advertise and
these agencies prepare a pre-demonstration. The Marketing Manager, General Manager(
Marketing) and the General Manager directly analyze and select the best among them and
entrust the agencies for covering their advertisement plans.
Kitex choose the following media:
TV : -Asianet, Surya, Kairali, Mazavil Manorama, Amrita etc

Print Media : - Malayala Manorama, Mathrubhumi etc
Other media involve hoardings, fluxes etc.
KITEX-stages in the product development process
• Idea research
• Screening analysis
• Product development
• Market testing
• Commercialization
KITEX-stages in the product life cycle
• Introduction
• Growth

51

• Maturity
• Decline
Pricing strategeis
• Prestige pricing
• Skimming pricing
• Penetration pricing
• Price lining
• Dual pricing

3.2.3 STORES DEPARTMENT
The manager heads the stores department. It is a sub section of purchase department.
He is assisted by four persons, two in general shifts and one each in other two shifts. Stores
manager reports to general manager. Stores department in Kitex controls the movement of
materials to all activities. Materials in stores department includes sizing chemicals, yarns of
different specification, adhesives, spare parts, electronic goods, lubricant tools, office
stationary, packing materials etc. items are coded for easy handling. Packing materials and
yarn are stored in corresponding departments but the issue of raw materials is controlled by the
stores department. Stores manager with the help of purchase manager and production manager
plans material storage.
Storage of all items of raw materials including sizing materials, yarn of different
specification, spare parts, electrical items, lubricant tool, office materials packing materials etc.
is the responsibility of store department. Material storage is planned by the store manager with
the help of purchase and production department. Yarn and packing materials are stored in the
production department godown due to lack of sufficient space in the store and to facilitate easy
handling of both the item.

52

FUNCTIONS UNDERTAKEN IN STORES DEPARTMENT
 Issue of raw materials which are ordered by various functional units. Raw materials are
issued when material requisition note is received from supervisors of concerned section
in production department.
 Recording quality, quantity and other specifications of items issued by stores
department in stores ledger account for inventory control.
 Availability of materials is checked through computer and verified.
 The physical stock is taken and is checked by stores department and also by the
internal auditors. Stock verification is done independently by store keeper and store
manager.
 The materials stocked should be preserved well so as to protect them from
deterioration. It is done with the help of eco-friendly chemicals and are insured against
fire.
RECORDING OF STOCK
Perpetual stock records are kept for raw materials, spares, work in progress and
finished goods. These records are periodically reconciled with accounting records. This is a
periodical reporting of storage or excess. If differences are there, they are investigated and
necessary adjustments are made in the final accounting records and stores ledger accounts
maintained in stores.
The stores department is fully computerized. A special software package is designed and
installed for inventory management in stores. All the receipts and issues are recorded in the
computer, ABC analysis of inventory is done in a regular basis of physical stock check once in
every month by the stores department and internal auditors.
STEPS IN RECEIVING MATERIALS
 Visual inspection.
 Preparation of receiving report.

53

 Preparation of inspection report.
 Dispatch of above reports to financial department for getting the bills passed and
arranging payments.
 Preparation of rejection notes of materials.
MATERIAL CONTROL SYSTEM
The company has material control system which ensures that right quantity of materials is
available at the right time at the right place with right amount of investment. Two levels of
material control exist in the company, quality control and financial control. Production
manager and stores manager are primarily interested in quantity control because it is their
responsibility to see that there is no stock out problem.
FEATURES OF MATERIAL CONTROL SYSTEM
 Continuous availability of all types of materials in the factory.
 No excessive investment in stock materials.
 While purchasing materials it is seen that it is purchased at a reasonable low price.
 There is minimum wastage of material while these are being stored in the godown by
the stores department.
 Information about availability of materials is continually made available by the store
manager.
 There is proper co-ordination and co-operation among departments.
 As a part of material control system, there exists an internal check on materials so as to
avoid misappropriation of store items.
TECHNIQUES OF MATERIAL CONTROL
 Level setting EOQ

54

 ABC analysis.
 Perpetual inventory system.
 Materials turnover ratio.
 Material cost reports.
INVENTORY CONTROL ANALYSIS
In Kitex, the major technique used in controlling the inventories is ABC analysis. Turnover
ratios are calculated and it is done regularly. All stocks are kept in assigned area and the access
to these areas is strictly restricted. The inventory control systems are designed in such a way
that the production is not interrupted in any way. Proper planning, purchasing, handling and
accounting of materials have helped company to control the cost of production. Thus it aims at
qualitative, quantitative and financial control.

55

Part III - Routine work given
by the organization

56

I entrusted with a job to find out the perception on recruitment and selection process and its
impact on Kitex Ltd. Kizhakkambalam, Kochi. The aim of personnel planning is to determine
the needs for persons both in terms of number and type. For deciding about the number both
present and future then this requirement should also be considered. Besides number type of
persons needed are also important. This will be decided by studying the job requirement etc.
The educational and technical requirement manage various job should be properly analyzed so
that right type of persons are employed.
In today’s competitive world choice of right employees for reaching implications for an
organization functioning. Employees well selected with the right kind of skill, knowledge and
potentials would contribute a lot to the efficient running of organization. Human Resource
problems including attitudes, skill and productivity issue all begin at the stage of recruiting. If
it’s wrong recruitment the organization has to pay heavily in terms of low productivity, low
competency and bring innovation, if proper recruitment is not done the right kind of
manpower is not deployed in the organization.
Recruitment is process for prospective employees and stimulating them to apply for a job in
the organization. When more persons apply for job then there will be a scope for recruiting
better persons. The job seekers too on the other hand are in search of organization offering
them employment. Recruitment is a linkage activity bringing together those with job and
seeking job.
4.1 OBJECTIVE OF THE STUDY
 To study the recruitment and selection process of KITEX.LTD KIZHAKAMBALAM,
KOCHI.
 To identify the strategies used by the company to recruit and selection of employees
 To determine if these strategies used are effective or not
 To identify the impact of the strategies on the employees of KITEX.LTD in terms of
success and overall performance
 To identify what measures can be adopted in place to improve the strategies

57

4.2 METHODS OF STUDY
Recruitment is a process of searching for prospective employees and stimulating them to apply
for jobs
Companies can adopt different methods of recruitment for selecting people in the company.
These methods are
 External sources
 Internal sources
4.3 RESEARCH METHODOLOGY STEPS :
Research designs adopted for this study is of the descriptive type
Sources of data: the data were collected from primary as well as secondary sources. The
secondary sources were following.
 Company record
 Journals
 Magazines
 Annual reports
4.3.1 Method of data collection:
The methods of techniques employed for primary data collection are follows
 Personal interview using structure questions with the employees of the company
 Direct observation of the employees of the company
 Telephone interview with the employees of the company
4.3.2 Sample size
The sampling adopted will be convenience sampling the researcher has selected 50 samples
out of 1800 employees from the universe. It is due to the fact this group can very well
represent the whole population understudy. The respondents consist of KITEX employees.

58

4.3.3 Universe
Total number of employees: 1800
Sampling method used: convenience sample method.
4.3.4 Convenience sampling
Convenience sampling is also known as grab, opportunity, accidental or haphazard sampling
with this method, the research objects that are easy to reach. As the name describes the
researcher chooses subjects because of convenience sampling are when students use their
classmates in a research study or a television reporter interviews people on the street.
In research methods, there are two primary classifications for sampling methods: non
probability and probability. With probability sampling methods all possible subjects out of a
population have a some chance of being included in the sample researchers can even calculate
the mathematical probability of one of them being selected. They can also calculate sampling
error, which is the degree to which the sample might differ from the actual population.
4.4 LIMITATION OF STUDY
 The major limitation of this project was that not much cooperation among the
respondents, because they are busy at work
 It is also difficult to visit the project area and collect the data on time
 Time constraint was also a major limiting factor
 Lack of facility for interviewing employees.
 The dislike of certain people to the questionnaire
 Lack of experience in conducting study in such a premises

59

4.5 DATA ANALYSIS AND INTERPRETATIONS
The data collected through the study is given below in the form of tables and figures
followed by its interpretations.
1.How do you evaluate recruitment procedures?
Table 4.1 shows the evaluation of recruitment procedures.
Criteria No of respondence
Excellent 10
Adequate 15
Good 25
Poor 0
Table 4.1

Diagram 4.1
Diagram 4.1 shows the evaluation of recruitment procedures.

60

INTERPRETATION
Out of 50 respondent 10 of them evaluate as excellent , 15 of them as adequate and 25 of
them evaluate as good
2. Which source of recruitment is preferred more?
Table 4.2 shows the preference of recruitment sources
Criteria No of respondents
Internal 9
External 19
Both 22
Table 4.2

Diagram 4.2 shows the preference of recruitment sources
INTERPRETATION
Out of 50 respondents 9 replied internal, 19 replied external and rest 22 replied both

0
5
10
15
20
25
Internal External Both
Recruitment
No of respondents

61

3. What is the duration of recruitment process?
Table 4.3 shows duration of recruitment process.
Criteria Duration
3 weeks 5
A week 15
10 Days 20
Few months 10
Table 4.3

Diagram 4.3
Diagram 4.3 showing the duration of recruitment process
INTERPRETATION
The above graph shows the duration of recruitment process.Out of 50 respondents 5
responded 3 days, 15 responded a week, 20 responded as 10 days and 10 responded as few
months.
0
5
10
15
20
25
3 weeks A week 10 Days Few months
Recruitment Process
Duration

62

4. What are the various recruitment techniques used by the company?
Table 4.4 showing the various recruitment techniques used by the company
Criteria No of respondents
Promotion 10
Advertising 22
Transfer 08
Others 10
Table 4.4

Diagram 4.4
Diagram 4.4 shows the preference of recruitment techniques
INTERPRETATION
The above graph shows the various recruitment processes.Out of 50 respondents 10
supported for promotion, the other 22 supported advertising and other8 supported transfer
and other 10 supported others.

0
5
10
15
20
25
PromotionAdvertisingTransferOthers
Recruitment Techniques
No of respondents

63

5. How many stages are involved in selecting the candidate?
Table 4.5 showing how many stages are involved in selecting the candidate.
No of stages No of respondents
One 9
Two 12
Three 24
Four 5
Table 4.5

Diagram 4.5
Diagram 4.5 shows no of stages in the selection process.
INTERPRETATION
The above diagram shows the no of stages in the recruitment processes. Out of 50
respondents 9 specified it as stage 1, other 12 specified as stage 2, other 24 specified as
stage 3 and other 5 specified as stage 4
0
5
10
15
20
25
30
One Two Three Four
No of stages in the selection process
No of respondents

64

6. Do you feel the HR department is efficient in recruitment policies of the employees
Table 4.6 shows the efficiency in recruitment policies of the employees by the HR
department.
Criteria No of respondents
Very good 20
Good 20
Poor 10
Very poor 0
Table 4.6

Diagram 4.6
Diagram 4.6 shows the evaluation of recruitment policies.
INTERPRETATION
The above diagram shows whether the HR department is effective in recruitment
processes. Out of 50 respondents 20 responded very good, other 20 responded good and 10
responded as poor
0
5
10
15
20
25
Very good Good Poor Very poor
Recruitment Policies
No of respondents

65

7. What is the average time spending by HR department for recruitment?
Table 4.7 shows the average time spend by HR department for recruitment
Criteria No of respondents
10MINs 5
10-20MINS 5
30MINS 15
MORE THAN 30MINS 25
Table 4.7

Diagram 4.7
Diagram 4.7 shows time spend for recruitment.
INTERPRETATION
During recruitment, out of 50 respondents 5 specify as 10 minutes, other 5 specifies 10-20
minutes, 15 respondents specify as 30 minutes and other 25 specified it as more than 30
minutes
0
5
10
15
20
25
30
10MINs10-20MINS30MINSMORE THAN
30MINS
Time spend for recruitment
No of respondents

66

8. How do feel about the salary structure offered by the company.
Table 4.8 shows satisfaction level of salary structure.
Criteria No of respondents
Highly satisfied 24
Satisfied 16
Dissatisfied 10
No opinion 0
Table 4.8

Diagram 4.8
Diagram 4.8 shows the satisfaction of salary structure.
INTERPRETATION
The above diagram shows the satisfaction of employees on the salary scheme. Out of 50,
24are highly satisfied, 16 are satisfied and 10 are dissatisfied
0
5
10
15
20
25
30
Highly
satisfied
SatisfiedDissatisfiedNo opinion
Salary Structure Satisfaction
No of respondents

67

9. How many panel of judges involved in the recruitment process?
Table 4.9 shows detail of number of panels involved in the recruitment process.
No of panels No of respondents
3 11
4 14
5 25
More than 5 0
Table 4.5

Diagram 4.9
Diagram 4.9 detail of number of panels in the recruitment process.
INTERPRETATION
The diagram shows the no of judges involved in the recruitment process
Out of 50 respondents 11 specify 3 panel,14 specify 4 panel, and 25 specify 5 panel
0
5
10
15
20
25
30
3 4 5 More than 5
No of panels
No of respondents

68

10. What are the criteria used for recruiting
Table 4.10 shows the criteria used for recruitment.
Criteria No of respondents
Work experience 17
Educational qualification 22
Gender 6
Age 5
Table 4.10

Diagram 4.10
Diagram 4.10 shows the criteria used for recruitment.
INTERPRETATION
The diagram shows the criteria used in the recruitment process
Out of 50 respondents 17 replied work experience, other 22 replied educational
qualification, 6 replied gender and other 5 replied age.
0
5
10
15
20
25
Work
experience
Educational
qualification
Gender Age
Recruitment Criteria
No of respondents

69

11. How would you rate the effectiveness of advertisement on recruitment?
Table 4.11 shows the response of effectiveness of advertisement on recruitment.
Criteria No of respondents
Excellent 26
Good 18
Average 6
Poor 0
Table 4.11

Diagram 4.11
Diagram 4.11 shows the effectiveness of advertisement on recruitment
INTERPRETATION
The above diagram shows the effectiveness of advertisement on recruitment. Out of 50
respondents 26 replied excellent, other 18 good and other 6 average.

0
5
10
15
20
25
30
ExcellentGood Average Poor
Effictiveness of advertisement
No of respondents

70

12. Does the company follow different recruitment process for different grades of
employees?

Criteria No of respondents
Yes 43
No 7
Table 4.12

Diagram 4.12
INTERPRETATION
The above diagram shoes whether different recruitment process are followed for
different grades of employees. Out of 50 respondents 43 replied yes and 7 replied no.

0
5
10
15
20
25
30
35
40
45
50
Yes No
Different recruitment process
No of respondents

71

13. What is your opinion about the applicant handling of HR department of the company?
Table 4.13 shows the opinion about the applicant handling of HR department
Criteria No of respondents
Very good 19
Good 29
Average 2
Poor 0
Table 4.13

Diagram 4.13
Diagram 4.13 shows the applicant handling of HR department.

INTERPRETATION
The above diagram shows the opinion about HR department regarding applicant
handling. Out of 50, 19 replied very good, 29 replied good and 2 replied average.

0
5
10
15
20
25
30
35
Very good Good Average Poor
Applicant handling
No of respondents

72

14. How do you consider company atmosphere?
Table 4.14 shows the opinion about company atmosphere.
Criteria No of respondents
Very good 24
Good 18
Average 8
Poor 0
Table 4.14

Diagram 4.14 shows the opinion about company atmosphere.

INTERPRETATION
The above diagram shows the employees outlooks about company atmosphere. Out of 50 , 24
replied as very good, 18 replied as good and 8 replied as average.

0
5
10
15
20
25
30
Very good Good Average Poor
Company Atmosphere
No of respondents

73

15. How do you rate effectiveness of HR department of the company?

Criteria No of respondents
Excellent 20
Good 17
Average 13
Poor 0
Table 4.15

Diagram 4.15
INTERPRETATION

The above diagram shows the rate of effectiveness of recruitment in the company. Out
of 50 respondent 20 replied excellent, other 17 good and 13 as average.

0
5
10
15
20
25
ExcellentGood Average Poor
HR department effictiveness of the
company
No of respondents

74

4.6 FINDINGS
The following were found out after study:
 None of the respondent evaluated the recruitment procedure as poor and 25 of them
evaluated as good
 Kitex Ltd prefers both internal and external as their source of recruitment.
 The company follows different recruitment process for various grade of recruitment.
 The mostly used recruitment technique is advertisement, the other techniques are
promotion, transfer etc.
 Most of the employees feel that HR department is efficient in recruitment policies.
 The verification done for selection process is educational qualification legally and
professional Qualification.
 The average time spend by HR department during recruitment are more than 30
minutes
 The employees are highly satisfied with the salary structure of the company.
 The panel of judges involved in the process of recruitment is 5.
 Most of the employees highly satisfied with the salary structure of the company.

4.7 SUGGESTIONS
 Better training should be made available to employees for efficient work.
 Compensation package should be increased.
 Suggestions boxes must be placed for the purpose of getting feedback from employees.
 The present commitment shown by the management towards the safety and welfare
measures should be kept at the same level or at a higher level as per the situations as it
directly affect the productivity of employees

75

5. CONCLUSION
The organizational study which was conducted at KITEX LTD. KIZHAKAMBALAM helped
significantly to get a feel of the real world industry and organization climate. The study about
various departments and their functioning contributed to bridge the gap between theory and
practical knowledge. KITEX LTD. Maintaining a perfect harmony between various
departments, with its excellent working conditions. The Company now plans to take its
performance to next level by further modernization, creating new markets in Europe and US
by implementing niche products using high tech and time saving machinery and devices,
improvement in quality of its employee by training, research and development. With the order
books getting bulkier, KITEX is confident that it will become the leading manufacturer in the
WORLD, in the INFANTWEAR APPAREL SEGMENT by the end of 2015 calendar year.

76

6. BIBLIOGRAPHY

• www.annagroup.net
• www.wikipedia.org
• www.fibre2fashion.com/industry.../indian-textile-industry-an-overview1....
• http://www.ask.com/question/customer-satisfaction-definition
• www.ibef.org/industry/textiles.aspx
• www.capitalline.com

77

ANEXXURE I
QUESTIONNAIRE
Name:
Place:
Age:
Educational Qualification:
Gender:
1. How do you evaluate recruitment procedures?
Excellent Adequate Good Poor
2. Which source of recruitment is preferred more?
Internal External Both
3. What is the duration of recruitment process?
3 weeks A week 10 Days Few months
4. What are the various recruitment techniques used by the company?
Promotion Advertising Transfer Others
5. How many stages are involved i n selecting the candidate?
1 2 3 4
6. Do you feel the HR department is efficient in recruitment policies of the employees ?
Very good Good Poor Very poor
7. What is the average time spend by HR department for recruitment?
10MINS 10-20MINS 30MINS MORE THAN 30MINS

78

8. How do feel about the salary structure offered by the company?
Highly satisfied Satisfied Dissatisfied No opinion
9. How many panel of judges involved in the recruitment process?
3 4 5 More than 5
10. What are the criteria used for recruiting?
Work experience Educational qualification Gender Age
11. How would you rate the effectiveness of advertisement on recruitment?
Average Excellent Good Poor
12. Does the company follow different recruitment process for different grades of
employees?
Yes NO
13. What is your opinion about the applicant handling of HR department of the company?
Very good Good Average Poor
14. How do you consider companies atmosphere?
Very good Good Average Poor
15. How do you rate the effectiveness HR department of the company?
Excellent Good Average Poor

79

Kitex organisational study

About This Presentation

Slide Content

Tags

Categories

Download

Quick Actions

Statistics

Related Slideshows

Kitex organisational study

About This Presentation

Slide Content

Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Slide 30

Slide 31

Slide 32

Slide 33

Slide 34

Slide 35

Slide 36

Slide 37

Slide 38

Slide 39

Slide 40

Slide 41

Slide 42

Slide 43

Slide 44

Slide 45

Slide 46

Slide 47

Slide 48

Slide 49

Slide 50

Slide 51

Slide 52

Slide 53

Slide 54

Slide 55

Slide 56

Slide 57

Slide 58

Slide 59

Slide 60

Slide 61

Slide 62

Slide 63

Slide 64

Slide 65

Slide 66

Slide 67

Slide 68

Slide 69

Slide 70

Slide 71

Slide 72

Slide 73

Slide 74

Slide 75

Slide 76

Slide 77