A PROJECT REPORT ON Workers Participation in Management

Submitted in partial fulfillment for the requirement of the award of degree in Master of Business Administration

SUBMITTED TO: MBA Dept. (HOD)

SUBMITTED BY: Aalia Begum Roll No. 1115270001 MBA Final Sem

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY 8&9, KNOWLEDGE PARK-ll,GREATER NOIDA

ACKNOWLEDGEMENT

A project is never the sole product of a person whose name has appeared on the cover. Even the best effort may not prove successful without proper guidance. For a good project one needs proper time, energy, efforts, patience, and knowledge. But without any guidance it remains unsuccessful. I have done this project with the best of my ability and hope that it will serve its purpose. It was really a great learning experience and I am really thankful to PROF. SUNIL V. D ESH PANDE , who not only helped me in the successful completion of this report but also spread his precious and valuable time in expanding my knowledge base. After the completion of this Project I feel myself as a well aware person about the Research Procedure and the complexities that can arose during the process. Also I get an insight of the advertising industry and its effectiveness in promoting sales. Finally, I am also grateful to all those personalities who have helped me directly or indirectly in bringing up this project report.

Aalia

PREFACE

A comprehensive practical study of management is a supplement to the theoretical classroom knowledge. It helps to understand more precisely. This report tries to outline idea of professional world and helps in understanding the pragmatic aspects of WORKERS PARTICIPATION IN MANAGEMENT. Own observations are significant towards the contribution in learning. The report is therefore designed as a reference of organization functioning rather than copy down instrument. The purpose of PROJECT is to make management student familiar with day to day functioning of business. The current report is an effort in this direction. My humble endeavor and motive in presenting the project is to impart a balanced introduction and knowledge of workers participation in Management. It is hoped that this project will serve as a supportive document to research workers as efforts has been tried to make this report an informative, stimulating and self explanatory.

TABLE OF CONTENTS CHAPTER PLAN

Chapter-1

Introduction of Study ( Add objectives ,

scope and justification of study) Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Company Profile Research Methodology Analysis & Interpretation Conclusions Recommendations (After recco. Add

limitations of study) Chapter-7 Chapter-8 Chapter-9 Annexures) Bibliography (Bibliography after Annexures) Annexures Questionnaire (Questionnaire included in

WORKERS PARTICIPATION IN MANAGEMENT INTRODUCTION

Workers participation in management (WPM) has come to say in both developed and developing countries. The concept is an extension of the political system to the work place. In a democracy, participation of the people in the political process is an essential ingredient of the system. Similarly, WPM is an extension of the political process to workplace relations. Participation in the political context is an influencing process, so also at the plant level, it affects employee terms is an influencing process, so also at the plant level, it affects employees terms and conditions of employment. Yet at the same time, the process of participation also helps in understanding the dynamics of an enterprises viability, rather then precipitating a We-They culture. Such a process helps in the growth of the individual and creates a sense of belonging. In broad sense, employee participation means associating representatives of workers at every stage of decision making , as is done in former East Germany and Yugoslavia. Participative management is considered as a process by which the workers shares in decision making extents beyond the decisions that are implicit in the specific contents of the jobs they do. This, in actual practice amounts to

the workers having a share in the reaching of final managerial decision in an enterprise. The structure, content and form of WPM depend on the political ideology and systems adopted by a particular society. The idea of WPM as an alternative to the capitalist pattern of management has emerged in response to:1. The threats from the emerging centers of countervailing power, particularly the organized labour. 2. The demands of continuous production during the world wars when managers tried strategies to insure uninterrupted industrial activity. Other factors, which led to the need for WPM, are the growth of public enterprises, experiment of industrial psychologists, development of scientific management, which encouraged closer cooperation between the employers and employees in order to increase the efficiency of the undertaking, and the role of ILO which clearly observes in its Philadelphia Declaration the importance of measures which would lead to a close collaboration of workers and employees. India in its commitment to establish a socialist pattern of society through mixed economy adopted the present system of workers participation in management, which has been an important part of his labor policy since it attained independence. The second five-year plan laid the emphasis on a constructive relationship between employer end employee. According to this plan, socialist society is built on ideas of service to the society and its willingness to recognize such service. It is necessary in this regard that workers be made to feel that they are helping to build a progressive state .WPM in India can also be traced to one other factor namely the Gandhian

approach to management of industrial relations which is based on the concept of trusteeship. Gandhiji considered that both worker and the owner are dependent on one another and the employer and the employee should further act as trustees for the society. Thus, Gandhijis concept of trusteeship is based on the theme of collaboration between the employer and the employee rather than a conflict.

DEFINITIONS: Different authorities define and interpret workers participation in management in different ways for example; employees interpret it as the joint consultation prior to decision-making while experts often regard it as the association of labour without the final authority or responsibility in decision making process. According to Mehtras, the concept of participation as a principle of democratic administration in an industry implies to share by rank and file in the decision-making process of an industrial organization through their representatives at al the appropriate levels of management in the entire range of managerial action. The International Institute of labour Studies remarks the participation results from practices which increase the scope for employees share of influence in decision-making at different tiers of the organizational hierarchy. According to V.P. Michael, WPM is the involvement of workers only in such areas of activities of enterprises where they can some positive contribution.

 In other words, workers participation is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of the undertaking and through which they express their opinion and contribute to management decisions, In the words of Davis, it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities with them.

FEATURES OF WORKERS PARTICIPATION CAN BE IDENTIFIED AS: 1. Participation means mental end emotional involvement rather than a mere physical presence. 2. Workers participate in management not as individuals, but collectively as a group through their representative. 3. Workers participation in management may be formal or informal. 4. Workers participation should be distinguished from collective bargaining. The former is based on mutual trust, information sharing and mutual problem solving. On the other hand, collective bargaining is essentially based on power play pressure tactics and negotiations. 5. There can be four levels of participation Shop floor, plant and corporate level

SHOP FLOOR LEVEL: At the shop floor council normally deals with

-Production and storage facilities in the shop. -Material economy -Operational problems, wastage control, hazards. -Safety problems. -Quality improvements. -Monthly targets and production schedules. -Cost reduction programs formulation and implementation of work systems. -Design group working. -Welfare measures related to the shop.

PLANT LEVEL: The plant council normally deals with

1. OPERATIONAL AREAS
-Determination of productivity schemes taking into consideration the local conditions; -Planning, implementation, and attainment and review of monthly targets and schedules; -Material supply and preventing its shortfall; -Housekeeping activities; Improvement in productivity in general and in critical areas in particular; -Quality and technological improvements; -Machine utilization, knowledge and development of new products;

-Operational performance figures; -Matters/problems not sorted out at the Shop floor level or those that concern more than one shop; and -Review of working of shop level bodies.

2. ECONOMIC AND FINANCIAL AREAS

-Profit and loss statements, balance sheet; -Review of operating expenses, financial results, and cost sales; -Enterprise performance in financial terms, labour and managerial cost, and markets condition, etc.

3. PERSONAL MATTERS
-Matters relating to absenteeism; -Special problems of women workers; and -Initiation and administration of workers programs.

4. WELFARE AREAS
-Implementation of welfare schemes, such as medical benefits, housing and transport facilities; -Safety measures; -Township administration; and -Control of habits of gambling, drinking and indebtedness among the workers.

5. ENVIRONMENTAL AREAS
-Environmental protection; and -Extension activities and community development projects.

BOARD/ CORPORATE LEVEL: At the board level, the workers representatives will participate in function assigned to the board. They would also review the work of the shop and plant level participating forums.

FACTORS THAT LED TO THE RISE OF WPM: The employers realization of the need for workers participation in management was considerably influenced by the following factors: a. The increased use of technology in industry has necessitated the growing co-operation of workers because of complex operations of production. b. The changed view that employees are no longer servants but are equal partners with their employers in their efforts to attain the goal of the enterprise. c. The growth of trade unions which safeguard the interests of workers and protect them against possible exploitation by their employers. d. Growing interest of the government in the development of industries and welfare of the workers

e. The need for increased and uninterrupted production which can be achieved only when there is a contented labor class.

EVOLUTION OF PARTICIPATIVE MANAGEMENT

Participative management is a constitutional commitment in India. Article 43-A of the constitution (42nd Amendment) provides: The state shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry. A beginning towards workers participation was made with the passing of the Industrial Disputes Act 1947, which made it mandatory for every large industrial undertaking to constitute works committees comprising representatives of employers and employees. In 1956, the Industrial Policy Resolution was adopted by the government, which stated that there should be some joint consultation to ensure industrial peace, and improve

employer-emloyee relations. Subsequently, a study team, under the chairmanship of Vishnu Sahay, Secretary in the Ministry of Labour, Government of India, was sent to the U.K, Sweden, France, Belgium, former West Germany and Yugoslavia to study the problems involved in the scheme which was similar to the British system of joint management councils and committees. The functions of these joint bodies were to be consultative and were not binding on the management. The response to the scheme was very encouraging, to start with .Soon, however, interest in it waned. A study team was appointed in 1962 to report on the working of joint councils and committees. The team concluded that these bodies were a failure. But no concrete steps were taken to remove the difficulties, or change the pattern of participative management. The interest in participation was revived during the Emergency of 1975-77.Workers participation in the industry was a part of the 20-poit programme initiated by the then Prime minister. The government started persuading large enterprises to set up joint consultative committees and councils at different levels. It was again emphasized in the new 20-point programme adopted after the Congress Government came back to power in 1979. The government notified, in 1983, a new and comprehensive programme. The programme was applicable to all public sector undertakings. The government introduced on May 30,1990, a bill-The participation of workers in Management Bill-in the Rajya Sabha. The bill requires every industrial enterprise to constitute one or more Shop-Floor Councils at the shop floor level, and an Establishment Council at the establishment level. These councils were to have an equal number of representatives of employers and employees A shop- floor

Council has such powers and functions as it deems necessary in relation to: 1. Production 2. Storing. 3. Matarials economy. 4. Operational problems. 5. Wastage control. 6. Hazards of safety problems. 7. Quality improvement. 8. Cleanliness. 9. Monthly targets and production schedules. 10. Cost-reduction efforts. 11. Formulation and implementation of work-systems. 12. Design group working, and 13. Welfare measures particularly related to the shops.

Similarly, the establishment council has been conferred wide powers and functions. These relate to operational areas, economic and financial areas, personnel matters, welfare, and environmental areas. The bill provides for the constitution of a Board of Management of every corporate body owning an industrial establishment. The bill also provides for penalties on individuals who contravene any provision of the bill.

CONCEPT: Participative management is based on two fundamental concepts. First, every individual in every organization is capable of contributing to improvements in the way work is done .It makes sense that the person doing a particular task is the one most knowledgeable about it and therefore most suited to enhance it. Moreover, individuals are motivated to perform better and with greater satisfaction through having the opportunity to influence the work situation. People also tend to be more committed to the accomplishment of goals and changes that they have helped to structure. The second concept is that the output of a group working together can be far greater than the sum of individuals separate efforts. This is known as synergy. Not only are more effective decisions made when all those affected are part of the decision making process, people also like to be part of a successful, productive team.

SCOPE
There are three groups of managerial decisions which have a direct impact on workers of any industrial establishment. They are social, personnel and economic decisions. Economic decisions include financial aspects-the methods of manufacturing, automation, shut-down, lay-offs, mergers and similar other functions. Personnel decisions refer to recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution, and so on. Social decisions relate to hours of work, welfare measures, questions affecting work rules and the conduct of individual workers safety, health, sanitation and noise control. The workers must have a say in the decisions on the issues mentioned above. But there is a difference of opinion about the scope and the extent to which workers can participate in social, personnel and economic decisions. One school of thought is of the opinion that the workers or the trade unions should, on parity basis, sit with the management as equal partners and make joint managerial decisions on all matters. The other school propounds the view that the workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels. The first view could lead to the workers actual participation in the decision-making process of the management, while the second aspect will work out to be consultation of workers in managerial decisions.

FACTORS ON WHICH EMPLOYEES PARTICIPATION DEPENDS

The intensity of employee participation depends on the following four factors. 1.

The subject-matter of participation: Workers interest in

participation varies with the nature of issues involved in participation .If they are trivial or foreclosed, and everyone realizes it, participation methods will boomerang. Issues that concerned will not, on the whole, engage their interest. Workers should have a stake in the results of participation. 2.

Level of participation: Participation can take place at three

levels in an enterprise: floor level, plant level and corporate level. In the big enterprises there may be a fourth level also, that is, the departmental level, in between the shop floor and the plant. Most workers desire participation at the floor level because at this level they can directly participate without representatives. 3.

Personal characteristics: Participation also depends on

individual characteristics of workers. They cant be ordered to participate. They must want participation and must have the necessary skills and information to enable them to participate effectively.

4.

Extent of participation: This should be very clear to the

workers. If their advice only is required then they should be told so. If they are asked for a decision then that decision must be accepted.

PRINCIPALS FOR IMPLEMENTATION: 1. Management commitment:

It is the most overriding requirement for the success of the participative approach. Many programmes begin at the workers level, and many such programmes survive and prosper. But even the strongest of these must eventually win over all the management ranks, including the most senior executives, or they will ultimately fail. The management must have a strong and visible presence in the participative process. 2.

Management motivation:

In order to achieve management commitment, it is frequently necessary to begin with management motivation. Motivation continues through measurement and tracking of the accomplishments of pilot efforts within the organization. Measurement must also become the integral part of the participative process in the face of the other strong pressures operating in the business.

3.

Organisational culture:

Evaluating organizational culture is an important step in developing a successful involvement process. Companies vary greatly in their management styles, and not all of these are suited to the smooth integration of employee involvement. The current economic health of the organization, the success or failure of the other recent motivational programmes, and similar intangibles must also be considered. 4.

Tailoring of the process:

Every company has its own character and its own level of rediness, tailoring the process to the company is vital. Intermediate programmes

are designed to move the corporate culture toward acceptance of participative management, may be necessary.

5.

Communication:

Open communication must begin during the earliest planning stages of the programme, to make clear the goals as well as the benefits anticipated for both individuals and the organization as a whole. Slowly the communication must be maintained and enhanced, to spread the words of organization, and to keep interest and motivation high.

6.

Teams:

Teams should be made up of volunteers at the member level as a minimum, and at all levels if possible. Team work requires the full and willing participation of every individual involved.

7.

Training:

It is very essential. Employees are asked to identify, attack, and resolve problems, as well as to understand and work within the frame work of a team effort Training should be ongoing as well, to refresh employees on the skills learned earlier, and to upgrade those skills as the teams efforts become more sophisticated.

8.

Employee recognition:

Providing employee recognition for employees who participate in the involvement process is highly recommended. Recognition need not to be monitory. Posters and bulletin boards congratulating individuals and

teams for their contributions, team hats, pins, or jackets, award dinners, contests for the best management presentation, articles in company newsletters may be adopted.

METHODS OF PARTICIPATION:

Financial Participation

Board level participation

Ownership Participation

TQM

Complete control

Empowered Teams

Staff or works councils

Quality Circles

Workers Participation In Management

Joint councils and committees

Suggestion schemes

Collective bargaining

Opinion Survey

Task forces

Open door Job Enlargement And Enrichment

Quality of Work Life

Performance Management

Work Simplification

Self-Assurance

The forms, ways and level of workers participation in management may vary widely between enterprises. The nature of participation depends on a number of factors, such as the sociopolitical attitudes and situation, the attitude of management and labour, labour-management relations, the relative strengths of labour and management, the peculiarities of the industry or enterprise.

1.

Participation at the Board level: -

Representations of workers on the Board ensure improved employeremployee relations, and guarantee better productivity. The workers representative on the Board can play a useful role in safeguarding the interests of workers. He or she can serve as a control element and guide to the management in its exercise of personnel and social functions. He or she can prevail upon the top management not to take measures that are unpopular with the employees. He or she can guide the Board members of investment in employee benefit schemes like housing.

2.

Participation through Ownership: -

Workers may become more involved in industries by making them shareholders of the company. This may be done by including them to buy equity shares. The management may promote the scheme by allowing the workers to make payments in installments. It may also advance loans or even give financial assistance to such workers to enable them to buy equity shares. Every year, the shares are revalued and prices are announced. Employees are given an option to redeem their shares at quoted prices.

3.

Participation through Complete Control: -

Workers acquire complete control of the management through elected boards. The system of self-management in Yugoslavia is based on this concept. It (self-management) gives complete control to workers to manage directly all aspects of industries through their representatives. The system of complete control ensures the identification of the workers with their organization. Industrial disputes disappear when workers develop loyalty to the organization. Trade unions welcome this type of participation.

4.

Participation through Staff or Works councils: -

Staff councils or works councils are bodies on which the representation is entirely of the employees. There may be one council for the entire 24organization or a hierarchy of works councils, from the shop-floor to the Board level. The members of the councils are elected by the employees of the respective sections. The councils have different functions in the management of an enterprise, ranging from eliciting information on the managements intentions to a full share in decision making.

5.

Participation through Joint Councils and Committees: -

Joint councils are bodies comprising representatives of employers and employees. The functions of these bodies may range from decision making on some issues, to merely advising the management as consultative bodies. Works committees have been constituted in industrial establishments employing 100 or more workers, and these comprise representatives of employers and employees. The constitution of a works committees is a legal requirement under the provisions of the Industrial Disputes Act, 1947.The committee discuss a wide range of topics connected with the workers welfare.

6.

Participation through Collective Bargaining: -

The principle of collective bargaining confers on the workers the right, through collective agreements, to lay down certain rules for the formulation and the contract of employment, as well as the conditions of service in an establishment. Such agreements are normally binding on parties and have the force of the law. Participation brings both the parties together and develops appropriate mutual understanding, and brings about a mature and responsible relationship. 7. Participation through Job Enlargement and Job

Enrichment:
Job enlargement means expanding the job contents-adding task elements horizontally. Job enrichment means that additional motivators added to the jobs so that it is more rewarding. The purpose of job enlargement and job enrichment is to reveal the boredom of the worker which flows from excessive specialization in mass production industries so that the job it self may be a source of self satisfaction. Job enlargement and job enrichment do provide for workers participation because they offer freedom and scope to them to use their judgment. However, this form of participation provides only limited freedom to a worker concerning the method of performing his/her job. It will not give him or her any say in some of the vital questions he or she may be interested in such a job and income security, welfare schemes and other policy decisions of the company which affect him/ her directly.

8. Participation through Suggestion Schemes: -

Employees views on such matters as machine utilization, waste management energy conservation and safety measures are invited, and reward is given for the best suggestion. This procedure enables the management to arouse and maintain the employees interest in the problems of their concern and its management. The suggestion schemes are increasingly used by progressive management.

9.Participation through Quality Circles: A quality circle (QC) consists of seven to ten people from the same area who meet regularly to define, analyze, and solve quality and related problems in their area. Membership is strictly voluntary, and meetings are usually held once a week, for an hour. During the groups initial meetings, members are trained in problem-solving techniques borrowed from group dynamics, industrial engineering and quality control. These techniques include brainstorming, Pareto analysis, Cause and effect analysis, Histograms, Control charts, Stratification and Scatter diagrams. 10. Empowered Teams: Empowering refers to passing on authority and responsibility. Empowerment occurs when power goes to employees who then experience a sense of ownership and control over their jobs. Empowered individuals know that their jobs belong to them. When they feel responsible, they show more initiative in their work, get more done, and enjoy the work more.

Organizational Organisational Values/ Values/ Leadership Leadership Action Action Competitive Quality Productivity Customer Service

Human Resource Systems (e.g. Rewards, Training)

Empowerment

Continuous Improvement Actions

Organizational Structural Job Design

9. Total Quality Management: Total Quality management (TQM) refers to the deep commitment of an organization to quality Quality of products and services is an obsession, and every step in the companys processes is subjected to intense and regular Scrutiny for ways to improve it. Employees are provided with extensive training in problem solving, group decision making and statistical methods. TQM is classified as a participative method because every employee in the organization is involved and is expected to take responsibility for improving quality, everyday. It is a formal programme which involves direct participation by all employees. 12. Financial Participation: The general purpose of financial participation is to enhance employee commitment to the organization by linking the performance of the firm to that of the employee. Thus, it is argued that the employee is more likely to

be positively motivated and involved if he or she has a financial stake in the company by having a share of profits or by being a share holder. There are many schemes of financial participation, but the more prominent of them are the profit linked pay, profit sharing and employee stop option scheme, workers cooperatives, management buyouts, pension fund participation and wage earner funds. 13. Opinion Survey: Via a series of questions regarding the organization, the management, the job, the strategy, and so forth, management solicits employees opinions, identifies areas where improvement is needed, and takes actions. An opinion survey often the first step taken by a management team that recognizes the need for change. 14. Open Door/One-On-One: Management encourages employees to communicate ideas and concerns by eliminating traditional barriers. Though some managers operate this way by nature, many organizations specially prescribe these practices. 15. Performance Management: Employees develop asset of performance goals for themselves and communicates them peers and superiors by publicly by displaying progress charts. Each individual is thus encouraged to achieve goals through peer support. In addition, knowledge of all others goals enables people to assist their fellow employees as well as to accomplish their own objectives. 16. Self-Assurance/Self-Control: -

Employees are trained to be fully responsible for their own work output. This requires knowledge of the desired results, knowledge of what the present level of performance or conformance is, and the means to make whatever adjustments are needed to achieve the desired outcome. 17. Work Simplification: An organizational unit creates a flow chart of part or all of the process for which it is responsible, be it production or service oriented. Each step is examined in detail, and then the process is simplified by removing redundant steps, combining others, streamlining, preventing recurring errors, etc. 18. Task Forces: Management often creates temporary forces or teams of employees to solve one time only problems. Although this provides those involved with unusual opportunities, the temporary nature of the task force makes it difficult to sustain motivation among the entire work force over long period of time. 19. Quality of Work Life: QWL utilizes many of the same concepts and tools of employees involvement as quality circles do. However, QWL is felt to be broader in scope, integrating a larger set of organizational goals through participative methods. It is closer to autonomous work groups, will solve wide range of problems and usually dont need managements permission to implement solutions.

PRE-REQUISITES FOR SUCCESSFUL PARTICIPATION

To make any of the participative methods successful, the following conditions have to be fulfilled: 1. The participants, namely, the management and the operatives, must have clearly defined and complementary objectives. And the objectives of one party should not work at cross-purposes with the objectives of the other party. 2. There must be a free flow of information and communication between the management and the workers. In this way, distrust and suspicion are avoided, and workers become responsible and mature when they discuss their demands with the management. 3. The representatives of workers must be drawn from the workers themselves. The participation of outside trade union leaders should be discouraged. This is necessary because the problems and difficulties of the workers are better understood by the workers them selves than by others. The workers, therefore, can put across their points of view to the management with confidence. 4. Strong and effective trade unionism is necessary for the success of participative management politicization and multiplicity of trade unions defeat the purpose of participation and management. 5. Workers education and training make a significant contribution to the purposive working of participative management. Trade unions and the government can play a major and meaningful role in organizing and conducting training programmes. 6. Neither party should feel that its position is threatened by participation. If workers think that status will be adversely affected, they will not participate. If managers feel that their authority is threatened, they will refuse participation or will be on the defensive.

7.

Consultative bodies, collective bargaining and suggestion schemes

make a mockery of participative management. To make workers participation meaningful and purposeful, workers should be associated at all levels of decision making. 8. The success of participation depends on a suitable participative structure and a change of heart on the part of employers and employees, which may take a long time to develop. To expedite this development, some sort of legislative action is necessary. 9. There could be the danger of a major portion of the resources of the enterprises being diverted to workers without much consideration for further investments. It may be desirable to reserve a certain percentage of the resources for reinvestment, either through mutual agreement or legislation. 10. The financial cost of participation should not exceed the values, economic and other wise that come from it. Employees can not spend all their time in participation, to the exclusion of all other work completed.

Ethical Perspective: Participative management has ethical dimensions also. There are five ethical perspectives involved in participative management: The first ethical stems from the fundamental objective of any morality-the impartial promotion of human welfare. This impartiality requires a fair hearing for the interests of every person in decisions concerning policies that affect their lives.

 The second principle requires the need to recognize the inherent value and dignity of the human being. One traditional basis for that believe in dignity of the human being derives from the fact that individuals are agents capable of free and rational deliberation. The third ethical perspective relates to the assumption that employees who believe themselves powerless will loose psychological good of self-respect. If all persons should be treated with dignity, they deserve the conditions that contribute to their sense of dignity or self efficacy. The self-worth the individual enhances when he/she is allowed to exercise his or her capacities in complex and interesting activities. Such activities exhibit him or her as an autonomous human being this necessitates participation by workers in corporate decisions. An employees sense of self respect depends on his or her participation in decision making. The fourth ethical principle supporting participation relates to the mental and physical health of employees. It is well known that repetitive work without control over ones own activities causes worker alienation. Alienated individuals suffer from mental disturbance and stress related physical illness. Since mental and physical health are important human assets, there is moral justification to protect them. Worker participation in corporate decisions in a sure way to minimize the affects of alienation at work place. Finally, ethical justification for worker participation is derived from the negative consequences of hierarchal and authoritarian organizations of work. Such organizational structures deny the workers their voice in decision making. Such deprived employees develop empathy towards any democratic process.

IMPORTANCE OF PARTICIPATION: The greatest benefit of participative management is that the employee identifies himself or herself with the work and this leads to an improved performance. Participation tends to improve motivation because employees feel more accepted and involved in the situation. Their selfesteem, job satisfaction, and cooperation with the management will also improve. The results often are reduced conflict and stress, more commitment to goals, and better acceptance of a change. Employees may also reduce turnover and absences when they begin to feel that working conditions are satisfactory and they are becoming more successful in their jobs. Finally, the act of participation in itself establishes better work problems. The management tends to provide workers with increased information about the organizations finances and operations, and this helps employees to give better quality suggestions.

1. MUTUAL UNDERSTANDING: -

Participation brings the two parties closer and makes them aware of each others problems. As a result a better understanding and mutual trust can be created between the employer and the employee. 2. HIGHER PRODUCTIVIY: Cooperation between management and labour helps to increase production and profits for the industry. Through participation workers learn the problems of industry and better understand their role. Participation improves employee motivation and job satisfaction, which in turn increase their efficiency 3.. INDUSTRIAL HARMONY: Workers participation in management helps reduce industrial disputes and to improve workers loyalty. Continuous dialogue between management and workers improves peace in the industry. 4. INDUSTRIAL DEMOCRACY: Participation of workers in management brings in industrial democracy, which is necessary for political democracy. Need for outside intervention between employer and employees is eliminated and the workers are freed from exploitation.

5. LESS RESISTANCE TO CHANGE: Workers often resist change due to fear and ignorance. When workers participate in the decision making, they come to understand that change is ultimately for their own good. They become more prepared to adopt themselves to technological and other changes made to improve competitive position of the company.

6. CREATIVITY AND INNOVATION: Participation encourages workers to think and take initiatives. Participation is helpful in training and developing future executives. Workers urge for self-expression is satisfied. c

Remove Conditions of Powerlessness Changes Leadership Reward System Job Perception of Empowerment Competence High value Job meaning Increased use of

Performance

Enhance Job-related selfefficacy Job mastery Role models Reinforcement Support

talent

LIMITATIONS OF PARTICIPATION: Participative management suffers from many limitations. These are: 1. Technology and organizations today are so complex that specialized work-role are required, making it difficult for people to participate successfully if they go very far beyond their particular environment. 2. Another issue is an employees right-not to participate. There is no advice that participation is good for everybody. Many people dont want to be bothered with participation. 3. Another problem is that participative situations can be used covertly to manipulate employees. This manipulation is not necessarily done by the management. It may be by the union or by undercover cliques led by members skilled in group dynamics-the social engineers of consent. 4. The feudalististic concept of the master and the servant is still prevalent among industrial workers, especially in India. Workers have an innate feeling that they are born to serve and not to rule. Participative management, naturally, is of little interest to such workers. 5. The role of trade unions in promoting participative management is far from satisfactory. Most of the unions indulge in politicking and little to think about participation. The result is that the workers perceive a trade unions role as crises-oriented and not as extending beyond certain individual problems. Naturally, workers dont expect their unions to play a major role in participation. 6. The unwillingness of the employees to share power with representatives, the disinterest of the workers, the perfunctory

attitude of the government towards participation act as stumbling blocks in the way of promotion of participative management.

IFFCO A UNIQUE EXPERIMENT IN COOPERATION

Farmers dream to have their own unique organization, which can produce and make available quality fertilizers to them at their door step was successfully realized with the formation of IFFCO- a pioneer in Indian Cooperative Movement. Indian Farmers fertilizer Cooperatives Limited (IFFCO) was registered as a multi-unit cooperative society on 3rd November, 1967 as a unique experiment in Indian Cooperative Movement in which farmers cooperatives joined hands and formed their own organization with broad objectives augmenting, fertilizer production, ensuring fertilizer availability at farmers doorstep, strengthening cooperative fertilizer distribution system and educating, training and guiding the farmers for improving agricultural productivity and rural economy. IFFCO got technical assistance from CFI, USA to create a success story Today, IFFCO has emerged as the largest producer and distributor of fertilizers in the world. Indian farmers today take pride that their Society produces over 60 lakh tonnes of fertilizer material every year and distributes through cooperative channel. IFFCO, a significant player in promoting Indias green revolution, had always been on the forefront of spreading the benefits of latest advancements in science and technology for the welfare of rural India. The Society had been bestowed with Best Management Work Force in India Award instituted jointly by M/s. Hewitt Associates and CNBC TV 18.

From its very inception, IFFCO has been performing exceedingly well. In fact, IFFCO name has assumed the hallmark of success. Over the years, it has grown in stature, strength and stability and become the light-beacon for others. In just three decades, it has turned out to be an institution with immense contribution in National progress. IFFCO is the federation of more than 35,000 societies most of them being village cooperatives spread all over India. This institutional organization is unique one in the sense that the farmer owners represented through their village cooperatives also the customers of its products. IFFCOs four most modern plants are located at Kalol, Kandla in Gujarat and Phulpur, Aonla in Uttar Pradesh having the total annual production capacity of 4.7 Million tones of fertilizers. IFFCOs all the plants have been achieving the annual capacity utilization in the range of 112-120 %.

COOPERATIVE MIGHT: IFFCO, which has made a humble beginning with membership of 57 cooperative societies in 1967-68, had grown in strength and stature and has 37,381 member cooperative societies in its fold as on March 31, 2005. Indian cooperatives initially contributed a sum of Rs. 6 lakh in the Share Capital of IFFCO in 1967-68, which has now grown to a whooping Rs.421.08 crore. Today, it is a Society of the farmers, by the farmers, for the farmers.

PRODUCTION: The Society has to its credit four state of the art fertilizer plants at Kalol and Kandla in Gujarat and Phulpur and Aonla in Uttar Pradesh. During the year 2004-05 all four fertilizer units together produced 61.54 lakh of fertilizer material, registering overall

capacity utilization of 101 per sent in nitrogenous fertilizers and 114 per sent in phosphatic fertilizers. The Kalol Plant that went on commercial stream in 1975 comprises plants for production of Ammonia, Urea and Dry ice. It produced 5.55 lakh tonnes of urea with a capacity utilization of 102 per sent during the year 2004-05. The Kandla unit also commenced commercial production of DAP and NPK in varying grades in 1975. During 2004-05, the plant churned out 24.40 lakh tonnes of NPK/DAP< attaining a capacity utilization of 114 per cent. The Societys twin plants at Phulpur near Allahabad Produced 14.29 lakh tonnes of urea by achieving a capacity utilization of 100 per sent. The unit bagged FAIs runner-up Award for 2003-04 for best Overall Performance of an operating unit for nitrogen (Ammonia plant). It had also been recipient of National Energy Conservation Award 2004 (Certificate of Merit). Similarly, IFFCOs units at Aonla-1 and Aonla-11 near Bareilly accounted for production of 17.30 lakh tonnes of Urea with a capacity utilization of 100 per sent during 2004-05. The Society contributed about 18.3 per cent to countrys total nitrogenous fertilizer production and 23.5% to total phosphatic fertilizer production during 2004-05 while plant productivity stood at 1510 tonne/person. The Society further excelled in the field of energy conservation by clocking the overall annual energy of 6.138 Gcal/tonne of urea, which favorably compares with the previous lowest of 6.11 Gcal/tonne the year before.

MARKETING: Besides producing fertilizers, IFFCO realizes the importance of reaching out to farmers at the right time. It markets and distributes fertilizers through an impressive network of five Zonal Offices, 18 State Offices, 62 Area Offices and 158 Farmers

Service Centers. The marketing of IFFCOs products NPK/DAP/UREA is channeled through the cooperatives. During the year 2004-05, IFFCO has notched up a record sale of 64.64 lakh tonnes of fertilizer material comprising 36.70 lakh tonnes of urea and 27.94 lakh tonne of NPK/DAP against the sale of 60.54 lakh tonne of fertilizer material in the previous year. The year also witnessed the best ever marketing productivity of 4042 tonne/head.

FINANCIAL PERFORMANCE: Maintaining its streak of excellence IFFCO has recorded a turnover of Rs. 7224 crore and harvested pre-tax profit of Rs. 470.92 crore during the year 2004-05 while net worth of the Society stood at Rs. 3300 crore. IFFCO has paid dividend for the year 2004-05 @ 20 per cent of the paid up equity to its shareholders for the fourth consecutive year.

IMPETUS TO COOPERATIVE MOVEMENT: Right from the beginning, IFFCO has been sparing no efforts to educate and inform the farmers on various packages of practices through its dedicated field team at the grass root level. Its need-based educational and promotional programmes like field demonstrations, field days, farmers meetings, seed multiplication, village adoption, crop seminars, special campaigns are proving to be effective in transfer of technology. In a bid to improve economic viability of cooperative societies, IFFCO has been developing some of the adopted societies as IFFCO franchisees by giving them the business of rake handling, transportation and warehousing of IFFCO fertilizers. Strengthening nations cooperative fabric has been IFFCOs principal forte. To make grassroots cooperative societies healthy, strong and vibrant, IFFCO has been paying patronage rebates. IT has promoted IFFCO-NCDC societies and has instituted

Sahakarita ratna and Sahakarita Band Awards. Lectures on Cooperation in memory of Pandit Jawaharlal Nehru are also regularly arranged.

RURAL DEVELOPMENT PROGRAMMES: The Society initiated development of model agricultural villages through its village Adoption Programme. The programme started with an objective to bring about over all development in the living standards of rural community through integrated rural development with particular emphasis on agriculture development, creation of drinking water facilities, medical and veterinary care. During the year 2004-05, it adopted 420 villages most of them economically backward, under this programme. So far, over 3300 villages have been benefited under this scheme since its inception in 1975-76. The Societys 127 Storage-cum-Community Centers set up through out the country are being utilized for storage of fertilizers and agricultural inputs apart from providing venues for organizing agricultural extension activities and social functions for villagers in their respective areas.

INVESTMENT OUTSIDE IFFCO: Apart from its own growth and service to farmers, IFFCO has contributed towards creation and development of other organizations. It has contributed 24.9 per sent equity (Rs. 7.97 crores) in Godavari Fertilizers and Chemicals Ltd. (GFCL) which has a plant at Kakinada. IFFCO is also a joint venture partner in Industries Chimiques Du Senegal (ICS) that produces Phosphoric acid in Senegal. It has also contributed to the equity of Indian Potash Limited (IPL), Maharashtra State Cooperative Ltd., Indian Tourism Cooperative Ltd. (COOPTOUR) and National Film and Fine Arts Cooperative Ltd. (NAFFAC).

IFFCO-TOKIO GENERAL INSURANCE COMPANY LIMITED: Pursuant to IFFCOs plans to diversify into areas other than fertilizers, IFFCO and TOKIO Marine and Fire Insurance Co. Ltd., Japan, established a joint venture company known as IFFCO-Tokyo General Insurance Co. Ltd. (ITGL) for undertaking general insurance business in India. IFFCO has subscribed to 51% equity in the shareholding of ITGL, while 26% equity is held by the TOKYO-Marine and Fire Insurance Co. Ltd. ITGL operates in four zones with a network of 41 offices across the country. The company launched 48 products to meet the market need for almost all the segments. The company during the year has earned gross Written Insurance Premium of Rs. 502 crore registering a growth of 55% over the previous year.

NATIONAL COMMODITY & DERIVATIVE EXCHANGE LTD.(NCDEX): To empower the farmers by enabling them to get reasonable prices for their produce and also to reduced the price risk through hedging; IFFCO has acquired a 12% stake in National Commodity and Derivative Exchange Ltd. (NCDEX). NCDEX is a leading national level exchange offering Futures Trading in commodities, most of which are agro-commodities. The operation of this exchange will provide a cushion against the inefficiencies of the current trading system and hence, enhance economic welfare of farmers.

NATIONAL COLLATERAL MANAGEMENT SERVICES LTD.(NCMSL): IFFCO Along with seven other institutions co-promoted National Collateral Management Services Limited (NCMSL) on September 28,2004. IFFCO holds 13.33% equity in NCMSL, which is first national level collateral Management Company to be set up in India. It would provide services in agricultural sector as well as Industrial sector.

INDIAN FARM FORESTRY DEVELOPMENT COOPERATIVE LTD. (IFFDC):

Under the joint Contribution Agreement signed with India-Canada Environment Facility (ICEF), IFFCO had promoted Indian Farm Forestry development Cooperative Limited (IFFDC) as a separate Multi State Cooperative Society with the basic objective of development of wasteland and to enhance the socio-economic status of the rural poor. ICEF-IFFDC Project implemented the afforestation and rural development work in the States of Uttar Pradesh, Madhya Pradesh and Rajasthan by promoting 113 Primary Farm Forestry Cooperatives Societies (PFFCS), with a membership of 23150 covering 21451 hectare of different categories of wasteland against the target of 20,000 hectare. Women constitute an impressive 37 percent of the total membership. IFFDC and five PFFCS prompted by IFFDC bagged the prestigious Indira Priyadarshani Vrikshamitra Award instituted by the Ministry of Environment and Forests.

IFFCO FOUNDATION: IFFCO laid the foundation of a Think Tank and Brain Bank named IFFCO Foundation with a primary aim to focus on strengthening primary cooperatives, social human resources and culture development in

cooperative sector, empowerment of women and youth, financial discipline and reforms in cooperatives. Eminent experts are assisting the Foundation by taking up various programmes.

CAPACITY ENHANCEMENT: IFFCO is also planning to carry out further de-bottlenecking of the exiting plants to enhance the capacity of Urea production by about 5 lakh tonnes per annum. The Naphtha based Phulpur Plant is being converted to use Re-gasified Natural Gas (R_LNG) for which GAIL is laying a gas pipeline of around 150 km to connect Phulpur plant with the HBJ Gas pipeline for supply of R-LNG. The total estimated capital investment for this project is Rs.480 crore and will generate an additional earning of Rs. 115 crore per annum for the society after implementation.

ENERGY SAVING SCHEME: IFFCO has embarked upon a massive Energy Saving Schemes Project for all five Ammonia Plants at Kalol, Phulpur-1 & 11 and Aonla-1 & 11 at an estimated capital investment of Rs.480crore. The energy saving measures consists of incorporation of techno-economically feasible schemes such as LTS Guard Bed, S-50 Converters, Make-up, Gas Chiller and Dryer, modifications in Syn. Gas Compressor and CO2 Removal system etc. The Society envisages an earning of Rs. 120 crore per year after the implementation of this project.

IFFCO KISAN SEWA TRUST: A Charitable Trust known as IFFCO Kisan Sewa Trust(IKST) was established to provide relief and rehabilitation to the victims in the wake of natural calamities like floods, earthquakes, cyclones, fires, landslides and droughts etc. The Trust has also undertaken programmes for the welfare and critical medical attention of needy farmers including

programmes and projects aimed at improving the quality of life of affected farmers.

COMMUNICATION/ INFORMATION TECHNOLOGY: Apart from various decision support system based on Information Technology in the area of HR, Marketing, Finance, Materials, Production and maintenance, IFFCO has taken initiative to promote e-culture in rural India, It has developed and installed touch screen based multilingual kiosks having web based services to provide exhaustive information on Agriculture, Fertilizer Industry, Agro-Chemicals, daily Mandi information and information on Cooperative Sector. The latest initiatives taken by the society are in the areas of eprocurement and e-tendering and e-recruitment. IFFCO is among the first one in the country to implement e-procurement based on public key infrastructure.

IFFCO ACQUIRES WORLDS LARGEST DAP PLANT:

16th September, 2005 was another momentous date for the fertilizer cooperative major IFFCO. In a historic deal the largest ever in the industry; IFFCO acquired the DAP, NPK and phosphoric acid facilities at Paradeep in Orissa from Oswal Chemicals & Fertilizers Ltd. The deal was stuck between IFFCO and Oswals for a sale consideration of Rs. 2180 crore that includes banks and financial institutions exposure of Rs.1915 crore. The Paradeep facility includes a two million tonne capacity to produce both DAP and complex fertilizers annually. It also has a phosphoric acid plant along with railway siding facility. The acquisition comes in the wake of the VISION 2010of the organization, which is geared up to take new challenges and opportunities in its stride. The facility will increase the complex fertilizer capacity of IFFCO by 2 million tones strengthening

its business, assisting its efforts to bring in more opportunities to serve the farmers of the country. The Oswal Chemicals and Fertilizers plant, commissioned in April 2000 is the worlds largest grassroots Di-ammonium phosphate (DAP) plant, can produce 2 million tonnes of the fertilizer a year. In terms of nutrients, the production capacity amounts to 0.8 million tonnes of P2O5 and 0.325 million tonnes of N per annum.

IFFCO has acquired the Di-ammonium phosphate (DAP), Nitro-phospo-potassium (NPK), and Phosphoric Acid facilities of Oswal Chemicals and Fertilizers Ltd. along with the entire Oswal Township. Plant capacities: DAP/NPK : 2 Million Tons/Year Sulphuric Acid: 7000 TPD Phosphoric Acid: 2650 TPD

COOPERATIVE RURAL DEVELOPMENT TRUST (CORDET): IFFCO promoted Cooperative Rural Development Trust (CORDET) in the year 1979 to provide education and training to farmers on various aspects of crop production, horticulture, animal husbandry, farm machinery etc. Land for CORDET adjacent to Phulpur plant of IFFCO was made available by Motilal Nehru Memorial Trust and CORDET has established Motilal Nehru Farmers Training Institute at Phulpur. At CORDET, Phulpur the training programmes are of one-six week duration, while at CORDET, Kalol training programmes of one-two weeks duration are held on different aspect related to farm production. Besides facilities for seed production and soil testing with an annual analyzing capacity of 25000 soil samples are set up. IFFCOs field staff collects the soil samples and forward them for its analysis. Farmers are communicated the results and they are encouraged to apply nutrients based on soil test. At CORDET, Phulpur a bio-fertilizer

unit was established in 1996-97 with an annual capacity of 75 MT of different strains. Bio-fertilizers are sold through IFFCOs Farmers Service Centers and Cooperative societies and also distributed to the farmers as one of the component of CIP. Development work at Kandla was started from July, 1999. Total area of the farm is 74 ha. CORDET, Nellore has undertaken its activities on 54 ha area. Fencing in some area has been completed. Annual maintenance work was undertaken on plants such as eucalyptus, coconut etc. Propagation of mother plants for orchard of mango, sapota, gauva, etc. have also been done. The plants are progressing well. Under paddy cropping sequence, seed multiplication programme was undertaken. Water harvesting tanks have been developed along the slope of the farm and installed pump set to irrigate existing crops.

PROPOSALS UNDER CONSIDERATION/IMPLEMENTATION

A.

ICS Expansion Project: -

IFFCO is partner in a joint venture company, ICS Senegal since 1984 for manufacture of phos. acid. The capacity, of the existing plant is 330,000 MT P2O5 per annum, is being further expanded to 660,000 MT P2O5 per annum at a total estimated cost of US$ 250 million. IFFCO's equity participation in the expansion project is US$ 20 million out of the total equity capital of US$ 100 million. The expansion plant is expected to be commissioned shortly. B.

Oman India Fertiliser Project: -

Government of India and Government of the Sultanate of Oman signed an Memorandum of Understanding (MOU) on July 30,1994 to initiate plans for construction of ammonia/urea complex in Oman. The MOU was also signed by KRIBHCO, RCF and OOC (Oman Oil Company) as co-sponsors. The Joint Venture Company, with RCF, KRIBHCO and OOC as partners was formed in February 1998. The project would be located in Qalhat near Sur on the East Coast of Oman, and have a capacity of 16.52 lakh tonne of urea per annum. The plant capacities would be 2*1750 tonne per day for ammonia plant and 2*2530 tonne per day for urea plant. Auxiliary facilities such as power plant, desalinated water plant, jetty, urea & ammonia storage would be included in the project scope. IFFCO has purchased the shares of RCF in Oman India Fertilizer Company (OMIFCO) and become a partner in the Joint Venture Company on signing of the Amended and Restated Joint Venture Agreement between IFFCO / KRIBHCO and Oman Oil Company (OOC) on 20th October 2000.

The project cost has been estimated at US$ 969 million and will be financed by debt and equity in the ratio of 2:1. IFFCO & KRIBHCO will contribute US$ 80 million each and Oman Oil will contribute US$ 160 million as their equity. C.

Nellore Fertilizer Project: -

Meeting of the PIB to consider the project was held on 29th April 1999. Final decision from GOI is awaited. The validity of the bids for ammonia and urea plants expired on 31.3.2000 and the bid bonds have been returned to the respective bidders. In case of active consideration of the Project by GOI, fresh bids will be invited. The estimated Project cost as per third estimate worked out in April 2001 is Rs. 1946 crore.

D.

Indo-Iran Qeshm Grassroots Project: -

IFFCO and KRIBHCO are exploring the feasibility of a Joint Venture Ammonia Project in Iran in collaboration with Qeshm Free Area Authority having capacity of 1750 MTPD. The total project cost is expected to be US $ 262 million. E.

Venture Joint Phos. Acid Project with GFCL, CPG & GCT in

Tunisia: IFFCO and Godavari Fertilizers & Chemicals Ltd. (GFCL) have entered into a Memorandum of Understanding with Groupe Chimique Tunisien (GCT) and Compagnie des Phosphates de Gafsa (CPG) of Tunisia for a Phos. Acid project at Skhira, Tunisia to set up a new Phos. Acid Project having capacity of 1.8 lakh tonne P2O5 per annum and acquiring the existing Phos. Acid Plant of 3.6 lakh tonne P2O5 per annum capacity

IFFCO's JV Indo-Egyptian Fertiliser Company launched in Egypt: World' s premier fertilizer cooperative (IFFCO), in collaboration with EI Nasar Mining company (ENMC) launched Indo Egyptian Fertilizer Company (IEFC) in Egypt on 21st November, 2005 for setting up a state of the art Phosphoric Acid Project in at an estimated capital cost of US$ 325 million. The Project will be financed with the debt equity ratio of 70:30. IFFCO is the major stakeholder with 76 percent in its equity participation while the balance 24 per cent will be held by ENMC. Egypt's largest rock phosphate mining company will supply rock phosphate, the basic raw material for the Project while IFFCO will buy back the entire Phosphoric Acid thus produced for its DAP Plant at Kandla. After the first Board Meeting of the Joint Venture Company in Cairo, Sh. U.S. Awasthi, Managing Director, IFFCO, said that the necessary land for construction of the Project at Edfu near the rock phosphate mines has been allotted by the Aswan Governorate and the Project has been accorded Free Zone status by the general authority for Investments and Free Zones, Egypt. He disclosed that discussions with International Financial Institutions for syndication of about US$ 220 million loan for the Project are in progress. He further informed that with the commissioning of the Project scheduled in early 2009, IFFCO will have assured supply of about one million tonne bulk Phosphoric Acid for its Kandla Plant. Sh. U.S. Awasthi said that Sh. Surinder Kumar Jakhar, Chairman of IFFCO has also been elected Chairman of Indo Egyptian Fertilizer Company (IEFC).

IFFCO - Chhattisgarh Power Ltd. (ICPL): Share Holders Agreement was singed between fertilizer giant, Indian Farmers Fertilizer Co-operative Limited ( IFFCO) and Chhattisgarh State Electricity Board (CSEB) paving way for the incorporation of a Joint Venture Company named IFFCO Chhattisgarh Power Ltd. (ICPL). Agreement to this effect was signed by Dr U S

Awasthi, Managing Director, IFFCO and Shri Rajib Ranjan, Chairman, CSEB, on 3rd Nov. 2005 at New Delhi. Earlier IFFCO had signed an MoU with Government of Chhattisgarh and Chhattisgarh State Electricity Board (CSEB) for setting up a Mega Power Project of 1000 MW in District Sarguja, Chhattisgarh. Revealing details of the project Dr U S Awasthi, Managing Director, IFFCO & Shri Rajib Ranjan, Chairman, CSEB said that the estimated cost of the Power Project will be Rs. 4,500 Crores & the project financing will be on 70: 30 Debt- Equity pattern. IFFCO and CSEB will share the equity in the ratio of 74% and 26% respectively. The financial closure of the project is targeted to be achieved by December 2006. The project will start generating power from year 2010. CSEB will off-take up to ninety percent of power generated from the project. It is worth mentioning here that it is a pit head Thermal Power Project which shall provide livelihood opportunities to the people of under developed area of District Sarguja, Chhattisgarh Dr U S Awasthi, MD IFFCO further added that IFFCO, under its expansion programme VISION 2010, has decided to make a foray in the field of power so as to provide another important input- Electricity to the farmers, apart from fertilizer & seeds.

Oman India Fertiliser Company SAOC (OMIFCO): IFFCO has along with the Oman Oil Company SAOC ("OOC'') co-promoted The Oman India Fertilizer Company SAOC (''OMIFCO''). Oman Oil Company SAOC (''OOC'') is the single largest shareholder of the company with a total of 50% stake in the company. IFFCO holds 25% of the entire share capital. OMIFCO has a modern world scale two-train ammonia-urea fertilizer manufacturing plant at the Sur Industrial Estate in the Sultanate of Oman. The implementation of the project by a joint venture of Snamprogetti of Italy and Technip - Coflexip of France under a lump-sum turnkey EPC contract started on 15th August 2002. Completion of construction, commissioning and performance

testing was done within the budgeted cost and also on schedule date of 14th July 2005, which is the start date of Commercial Production. The Complex is designed to produce 1.652 million tons per year of granulated urea and 0.255 million tons per year of surplus ammonia using natural gas as feedstock. Both the products are being imported to India. The Government of India (''GOI'') will off take the urea production and IFFCO will off take the surplus ammonia production. The Oman Ministry of Oil and Gas (''MOG'') will supply the gas feedstock under long-term agreements.

Mission OF IFFCO: To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. Commitment to social responsibilities for a strong social fabric. To institutionalize core values and create a culture of team building, empowerment and innovation which would help in incremental growth of employees and enable achievement of strategic objectives. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for stake holders. Building a value driven organization with an improved and responsive customer focus. A true commitment to transparency, accountability and integrity in principle and practice.

 To acquire, assimilate and adopt reliable, efficient and cost effective technologies. Sourcing raw materials for production of phosphatic fertilizers at economical cost by entering into Joint Ventures outside India. To ensure growth in core and non-core sectors. A true Cooperative Society committed for fostering cooperative movement in the country. Emerging as a dynamic organization, focussing on strategic strengths, seizing opportunities for generating and building upon past success, enhancing earnings to maximize the shareholders' value.

VISION 2010: In order to maintain the sustained pace of remarkable growth the society is in the process of formulating another growth plan Vision 2010 which aims at: Attaining an annual turnover of Rs. 15000 crore by 2010; Installation of Ammonia and Urea plants including acquisition of fertilizer units; Backward integration to meet feed stock requirements such as Phosphoric acid; Generation of Power, Exploration/distribution of Hydrocarbons; Production and marketing of micronutrients, seed, bio-fertilizers, pesticides etc; Value addition to agri-products and marketing; Manufacture of Petrochemicals; Banking and Financial Services and Information Technology and IT enabled services. IFFCO has also embarked on a $1 billion investment plan to augment the indigenous fertilizer production capacity as well as saving in energy consumption in its Urea Plants. Under this expansion plan:A Phosphoric Acid Plant in Egypt, with a capacity of approximately 5 lakh tonnes of P2O5 per annum will set up as a joint venture with state owned mining company of Egypt namely EI Nasar Mining Company (ENMC). Under the arrangement

phosphate rock will be mined in collaboration with ENMC and IFFCO will buy back the produced phosphoric acid. A Phosphoric Acid Plant in Kutchh district in Gujrat with a capacity of approx. 5 lakh tonnes per annum of P2O5. This plant will be wholly owned by IFFCO. DAP/NPK Plant with an additional capacity of 18 lakh MT per annum of fertilizer will be set up in Kandla. Discussion with a government entity to undertake mining of rock phosphate in Egypt is in progress. This will involve production of 20 lakh tonnes of rock phosphate. The rock from these mines would be used for the Phosphoric Acid Plant in India. The Society has entered into MoU with Government of Chhattisgarh and Chhattisgarh State Electricity Board (CSEB) for setting up 1000 MW coal-based Power Plant at a cost of Rs. 4500 crore in Sarguja district. CSEB will contribute 26 per cent equity while IFFCO will have the balance 74 per cent. The project is scheduled for commissioning in the year 2009 and shall achieve full capacity in 2011. The project will benefit the state and its farmers by making available substantial quantity of energy at low tariff.

MAGAZINES PRODUCED FROM IFFCO & ITS VARIOUS PLANTS: -

IFFCO NEWS:AONLA JYOTI:ASHPANDAN:SAHYOG:KASTOORI:-

It is home magazine of IFFCO, It is home magazine of IFFCO Aonla, It is home magazine of IFFCO Phulpur, It is home magazine of IFFCO Kandla, It is home magazine of IFFCO Kalol.

Inauguration of IFFCO's New Corporate Office - IFFCO Sadan: IFFCO's New Corporate Office, IFFCO Sadan, C-1, District Centre, Saket Place, New Delhi. , Was Inaugurated by Mr. Surinder Kumar Jakhar, Chairperson IFFCO at 10:26 AM on March 02 , 2006. The Board of Directors, Managing Director and all the Senior Executives of IFFCO were also present at the event . On this auspicious occasion entire IFFCO family participated in the havan and puja in the premises of 'IFFCO Sadan'.

MANAGEMENT (IFFCO): The Representative General Body (RGB) which is the General Body forms the supreme body that guides the various activities of IFFCO. The RGB consists of :

1. 2.

Members of the Board of Directors. One delegate from each of the Member Societies holding shares of

the value of Rs.100 thousand and above; such delegate shall be as per the

provisions of the Multi-State Cooperative Societies Act/Rules as amended from time to time; 3. Delegates to be elected from amongst the representatives of

Member-Societies (other than Members holding shares of the value of Rs.100 thousand and above) in each State/ Union Territory at the rate of one delegate for every 200 societies or part thereof. However, the maximum number of such delegates from any State / Union Territory shall not exceed 25. Such elected delegates shall be as per the provisions of the Multi-State Cooperative Societies Act/ Rules amended from time to time. The Board of Directors of IFFCO carries out all functions as specified under the Multi-state Cooperative Societies Act/Rules. The Board of Directors frame policies, direct the various activities of the Society, and under take any other activities conducive to overall growth and development of Societies. The Board is headed by the Chairman. The Managing Director is the Chief Executive of the organization with responsibilities for general conduct, supervision and management of day to day business and affairs of IFFCO. The Finance Director oversees the financial aspects and the Marketing Director looks after the marketing functions of IFFCO. These three functional directors are assisted by Senior Executives who are experts in various disciplines. : -

AONLA UNIT: The flagship of IFFCO, Aonla Unit is located in the Gangetic Plains of Uttar Pradesh in Bareilly district about 28 Km. South-west on Bareilly-Aonla Road. Aonla unit, an Ammonia-Urea complex, is comprised of two phases; Aonla-1 and Aonla-11. The total capacity of Aonla unit including both phases is 8,91,000 MTPA for Ammonia and 14,52,000 MTPA for Urea having two streams of Ammonia and four streams of Urea. The natural gas from HBJ pipeline being supplied from

Bombay High is the feedstock for the plants. Aonla-1 was commissioned in May, 1988 and Aonla-11 in December, 1996. Both Aonla-1 & 11 units are achieving average annual capacity utilization of 116%. IFFCO Aonla unit is one of the most efficient and quality a well as environment oriented unit so that M/s KPMG Peat Marwick, a quality registrar has certified it as ISO:9002 unit and M/s BVQL London has accredited it as ISO:14001 unit. The unique feature of Aonla Plant is that it is having Zero Effluent technology. Whatever effluent is generated, is used in the irrigation of 80-250 meter wide Green Belt which has been developed around the plant and township. Vermicomposting Plant having production capacity of 596 MT/year has been installed in Township for conversion of biodegradable waste to Vermicompost. Aonla unit takes pride in its contribution to the social welfare of surrounding villages by implementing various developmental schemes. True to the Mission of IFFCO: In the services of farmers, Aonla unit is putting all round efforts in the service of the society for National progress. Paul Pothen Nagar, the township for the employees, boasts of most modern facilities and is a beautiful place to live in.

QUALITY POLICY OF IFFCO, AONLA UNIT: IFFCO Aonla is committed to achieve satisfaction of its cooperative societies, farming community and customers by manufacturing and supplying specified quality product by pursuing: Improving Technology for Enhancing / Maintaining productivity and growth, Creating safe & healthy working conditions and eco-friendly environment, Co-operation and team spirit,

 Development of human resources.

ENVIRONMENTAL POLICY OF IFFCO, AONLA: It unit is committed for continual improvement and protection of environment by setting & reviewing the objectives and targets through environmental management system focusing at : Compliance of legislation related to stack emissions, effluent discharge, ambient air and water quality. Conservation of natural resources, Emergency preparedness for safety of plant and concerned personnel, Effluent and waste minimization, Development of all-round awareness and competence on environment issues.

SAFETY PRACTICES :The quality level of Aonla unit is reflected in its safety performance also. Aonla unit has observed accident free period for almost four years. Several safety features are in built in the design of the plant. Longest continuous accident free running figure of 996 days has been achieved which is equivalent to 7.82 million man-hours. A detailed disaster management action plan has been prepared to overcome any unforeseen occurrence. Fire alarm system network has been installed and commissioned throughout the factory consisting of automatic fire detection system and manual call alarm system.

E NV I R O N M E N T F RIENDLY APPROACH: Implementation of Environmental Management System- ISO 14001, Developing the environment & natural surroundings in Plant & Township to upgrade the quality of work life, Green Belt Development, Use of effluent water for development of Green Belt, Ban on use of Polythene bags in the township, Tree Plantation drive, Conducting awareness programmes to cover all employees on environmental issues.

COMMUNITY DEVELOPMENT: IFFCO Aonla Unit is driven by a unique sense of social responsibility and always strives to improve the socio-economic conditions of inside and outside the factory complex. IFFCO Aonla unit has provided direct as well as indirect benefits to people in villages surrounding the fertilizer complex. 210 villagers have derived direct benefits in the form of direct employment while the other villagers, from whom land was acquired got indirect benefits through various employment opportunities like providing goods and services to the inmates of IFFCO township, working as contractors etc.

WELFARE ACTIVITIES: IFFCO-Aonla Unit initiates and implements various programme out of its welfare fund. Following programmes are being implemented under these schemes : Health Camp,

 Eye Camp, Animal Health Campaign, Education Programmes on improved methods of cultivation, Construction of Village Path Way, Distribution of Plants through Social Forestry, Drinking Water Facilities like providing Hand Pumps in Villages, Construction of Bus Stops, Financial aid to schools / institutions of nearby area.

THE SALIENT FEATURES OF AONLA UNIT :(A) Particulars 11 Capacity (per annum) Ammonia Urea Project Zero Date Mechanical Completion Ammonia Production started Urea Production started 26.11.1996(unit-31) 18.12.1966(unit-41) Commercial Production started 16.07.1988 25.12.1996 5,01,600 MT 8,64,600 MT 08.01.1985 08.01.1988 15.05.1988 18.05.1988 Capacity (per annum) 5,01,600 MT 8,64,600 MT 30.09.1993 30.11.1996 13.12.1996 Aonla-1 Aonla-

Feedstock With Naphtha

Natural Gas

Natural Gas

Project Cost (Rs. in crores) 652 Guaranteed Specific Energy per MT Ammonia Q NG+ Naphtha Urea Plant Technology: Haldor Topsoe, Denmark Snam Progetti, Italy Urea Ammonia 5.78 GCal. 8.07 GCal.

955

7.54 GCal. With

5.59 GCal.

Ammonia Urea

Consultants: Development Consultant Ltd. & TEC Steam & Power Generation, Offistes

And PH Plants of both phases PDIL and HTAS PDIL and Snam Progetti Dedicated to Nation by honble PRIME MINISTER (B) Major Inputs Natural Gas (C) Plant and Township Area 1.7 MMSCMD 273 Acres 1.7MMSCMD Ammonia Urea 17.05.1989 Late Sh. Rajiv Gandhi Ammonia Urea 29.05.1997 Sh. I. K. Gujral

AONLA UNIT HAS BAGGED FOLLOWING AWARDS: IFFCO AONLA Unit has been awarded THE RAJIV RATNA NATIONAL AWARD for EXCELLENT INDIAN INDUSTRIES - BEST EXECUTIVE GOLD AWARD. Yogyata Praman Patra for developing and implementing effective Occupational Safety and Health Management System and Procedures for the year 2004 from National Safety Council. National Safety Award for outstanding performance in Industrial Safety as Runner-Up during the year 2004 based on Longest Accident Free Year. IFFCO Aonla Unit has been awarded Indo-German Greentech Environment Excellence Award (1st Position) for the year 1999-2000. IFFCO Aonla Unit has been awarded Indo-German Greentech Environment Excellence Award (2nd Position) for the year 2000-2001. Fertilizer Association of India's award for excellence in safety for the year 2001-02. National Safety Council of India's safety award, 2000 & 2002 (Prashanasa Puraskar) for developing and implementing very effective occupational safety and health management system and procedures and achieving very good performance.

AONLA - I: Best Project Implementation (Second Prize) by Ministry of Programme Implementation, Government of India. Adjudged first in the country for excellence in Energy Conservation and Management in the fertilizer sector by Ministry of Power, Govt. of India for the year 1993.

 National Energy Conservation Award (Commendation Certificate) in the Fertilizer Sector by Ministry of Power, Government of India for the year 1995, 2002 & 2003 Certificate of Merit from National Productivity Council in recognition of its performance in production during the year 1993-94.

AONLA-II: FAI Award for the year 2000-2001 for the best overall performance of an operating fertilizer unit for nitrogen (Ammonia Plant)

DEPARTMENTS OF IFFCO AONLA UNIT: -IFFCO Aonla unit is divided into following parts:A. Ammonia Plant B. Urea plant C. Product Handling Plant D. Utilities E. Steam and Power Generation Plant F. Raw water and Water Treatment Plant G. Cooling Towers H. Compressed Air System I. Inert Gas Plant J. Ammonia Storage K. Maintenance L. Technical Services

M. Management Information System N. Environment Management O. quality Control P. Fire and Safety Q. Human Resource Development R. Community Development S. IFFCO Township T. Communication U. Security System V. Medical Procedure A.

AMMONIA PLANT: -

There are two streams of Ammonia plants having the capacity to produce 1502*2 MTPD of liquid ammonia. The technology is based on Haldor Topsoe, Denmark process with Natural Gas and Naphtha as main raw materials. The production of ammonia requires hydrogen and nitrogen in the ratio of 3:1. The source of hydrogen is Natural Gas and Naphtha and Nitrogen is sourced from atmospheric air. Natural gas is supplied by GAIL through HBJ pipeline from Bombay High gas fields and Naphtha is supplied by IOC Mathura Refinery. Both are used as feedstock, which contains hydrocarbons. Small quantity of sulphur in the feedstock is removed by passing it through desulphurisation unit, Sulphur-free gas with gasified naphtha is then mixed with steam and sent to the primary reformer where reforming reaction takes place in the presence of catalyst producing a gaseous mixture of hydrogen and carbon compounds. Further, this mixture is reformed in secondary reformer where air is added to provide the required nitrogen for ammonia synthesis. After this reaction, the gas mixture is cooled in heat recovery

boilers and sent for shift conversion where carbon compounds are converted in to carbondioxide. This carbondioxide is separated from gaseous mixture and sent to Urea Plant as raw materiel for Urea Production. To avoid traces of carbondioxide, which is harmful in further process, it is converted to methane in methanator. Pure synthesis gas from methanator outlet is compressed and sent to ammonia converter where ammonia is formed. The final product of liquid ammonia is sent to Urea Plant as raw material for Urea Production. A common purge gas recovery unit with membrane technology has also installed to recover hydrogen for energy saving. B.

UREA PLANT: -

Four streams of Urea Plant having the capacity to produce 1320*4 MTPD of Urea Fertilizer. The technology is based on Snamprogetti, Italy of ammonia striping process. Liquid ammonia and gaseous carbondioxide is made available by ammonia plant, and sent to reactor after compression and pumping. In reactor, ammonia and carbondioxide react to form ammonium carbonate, which is further dehydrated to form urea by the heat of reaction. The output of reactor is sent to the stripper where urea is further concentrated by removing undehydrated ammonium carbonate using ammonia for stripping. Urea solution leaving the striper still contains some ammonium carbonate, which is further purified in MP and LP sections. Vapours containing ammonia and carbondioxide obtained from these vessels are converted to ammonium carbonate and recycled to the reactor. Concentration of urea solution is important because rise in the temperature encourages biuret formation, which is poisonous to the crop. Therefore, it is concentrated under vacuum operated concentrators. After final concentration Urea Melt (99.7%) is pumped to Urea Prill tower where it is sprayed by rotating Prill bucket and fine droplets of urea are solidified by means of natural air draft. At the bottom of Prill tower urea prills are

collected and sent to product handling plant by means of scraper and belt conveyors. C.

PRODUCT HANDLING PLANT: -

Product handling plant is composed of Urea storage known as Silo and Packing and transport activities. Two silos of 45,000 and 30,000 MT capacity have been provided to store urea product to ensure continuous urea production even if it is not taken off due to non-availability of rail wagons or seasonal demand fluctuations. The packing facilities where bagging, stitching and loading operations takes place are composed of 16 such stations. Each station is having two weighing, filling and one stitching machines. These machines are electronically operated and fully computerized. The system is equipped with data logging system, which can display and record various detailed fact and figures for dispatch. D.

UTILITIES: -

Apart from raw material, production of Ammonia and Urea requires various utilities viz,: Power, Steam, Cooling Water, Instrument Air, Inert Gas, Ammonia storage facilities etc. For this purpose, various other plants have been functioning. E.

STEAM AND POWER GENERATION PLANT: -

To meet the continuous power supply needs of the main plants, captive power plant and steam generation facilities have been provided. In this plant, two gas turbines each having the capacity of 18MW alongwith heat recovery steam generation unit has been provided to cater to the plant needs of power and steam. Additionally, HRU unit of Ammonia-11 adds to of the steam supply of the complex. F.

RAW WATER AND WATER TREATMENT: -

A chain of 15 bore-wells has been created to meet the water requirement of plant and township. Raw water from these bore-wells is collected in raw water reservoir having the capacity of 33,396 M3. As steam generation requires demineralised water, water treatment plant treats the raw water to remove minerals and other dissolved salts. This demineralised water is used for steam generation in boilers. Six units of water treatment plant each having the capacity to produce 140 M3/hr of DM water have been provided to supply of the D.M. water for all the boilers of complex. Six condensate polisher units of 120 M3/hr capacity each have also been provided to conserve and recycle contaminated condensates.

G.

COOLING TOWERS: -

Four induced draft type towers meet the cooling water requirement of Ammonia, Urea and Power plants and offsite facilities. Cooled water is circulated from cooling towers to various heat exchangers in the plants and the returned hot water is cooled down in cooling towers and gets cooled in direct contact with cold air. This circulation type cooling water system reduces the requirements of make up water condensate. This cooling water is Eco-friendly as non-chromate chemicals are used for its treatment. H.

COMPRESSED AIR SYSTEM: -

One centralized compressed air system has been established to meet total compressed air requirements (both plant air and instrument air) for Ammonia, Urea and other related offsite facilities. The compressed air system comprises of 6 reciprocating compressor each having the capacity of 1200 NM3 per hour at 8 kg/cm2. Air drier unit has been provided to produced air of very low dew point. Additionally 1 centrifugal compressor of 5000 NM3/Hr capacity has been installed to meet all the requirements of the plants. I.

INERT GAS PLANT: -

The equipment and vessels of Ammonia, urea and other plants are required to be purged to eliminate explosive and toxic gases before putting up for maintenance and also catalysts are also to be kept under nitrogen atmosphere for its protection when the plant is under shut down. For this purpose, inert gas plant has been provided to produce 600 NM/Hr. of high purity gaseous nitrogen at a pressure of 7kg/cm2. The process is based on fractional distillation of air at low temperature.

J AMMONIA STORAGE: -

A storage facility has been created to facilitate uninterrupted operation of ammonia plants in case of urea plant shutdown. Two refrigerated ammonia storage tanks each of 10,000 M3 capacity have been provided to store liquid ammonia at 33o C temperature and at atmospheric pressure. The storage facility comprises of all safety system in its operational procedure. K MAINTENANCE: To run a large complex of this magnitude at its peak efficiency and productivity, Maintenance function comprising mechanical, electrical, instrumentation, civil and telecommunication disciplines has been created. Various types of equipment repair and keeping it operation worthy are carried out in-house. This large plant complex comprises of various mechanical equipment supplied indigenously as well as from abroad, it requires high level of expertise to maintain them. The emphasis is on preventive maintenance on turbines, pumps, compressor, rotors, vessels, heat exchangers and reactors etc. is carried out using internal resources. A large power distribution network also has been created and maintained for uninterrupted operation in the plants. The network involves various substations, transformers, control centers, emergency power supply etc. This network is monitored and controlled by software called Programmable Logic Control (PLC). For efficient operation of chemical process plants, effective instrumentation and control with precision is essential. Our plants are having most modern instrumentation comprising distributed control system based on latest software. All this instrumentation is microprocessor based using large array of electronics. L TECHNICAL SERVICES: Our plant operations and maintenance is ably supported by technical services. Its main objective is to study the plant problems and provide solutions for

debottlenecking covering various aspects of the plants. Various in-house schemes have been developed and implemented to improve the efficiency and energy consumption. An intensive management reporting system is being practiced to keep all the functions and head office abreast of latest developments and as decision support system. Beside this a technical library has been provided to supplement the latest professional information. The library boasts of more than 3,000 volumes of books and standards and more than 10,000 plant related documentation. M. MANAGEMENT INFORMATION SYSTEM: In keeping pace with changing times, MIS has been given due status at Aonla Unit. The unit has a campus wide Computer network using client-server technology. Fiber Optic Cable of about 7 KM length runs through out the plants and forms the nerve system of network. All networking components like state-of-art switches and IBM has provided hubs. The network comprises of 200 Nos. of clients and 5 Nos. of servers. Most of the clients are Pentium and Pentium MMX computers. IBM RS 6000 is the main server having AIX and Oracle 8.0 on it. Rests are Windows NT and NetWare servers. All functional areas of the unit have been computerized. The network is connected to all units, head office and marketing offices via satellite through NICNET. Lotus Notes 4.5 on Windows NT facilitates E-Mail within and outside world. Aonla Units own website has been placed on Internet so as to enable others to know about the success story of Aonla Unit. N. ENVIRONMENT MANAGEMENT: IFFCO understands its responsibility towards the environment, therefore to maintain the ecological balance, Zero-effluent technology has been selected for its plants. The effluent from various plants undergoes extensive treatment and collected in lagoons from where, it is used for irrigation of the green belt. A large 80-

meter wide green belt has been created around the plant. Some of the important environment management facilities provided are de-dusting system, disc-oil separator, hydroliser, non-chromate cooling water treatment program and separate effluent treatment plant. The air quality is also monitored continuously. The environment parameters, which are monitored, are well below the MINAS and OTHER pollution standards. The lagoon area has become natural habitat for the migratory birds during winter season and can excel any picnic resort.

O.

QUALITY CONTROL: -

Being an ISO: 9002 unit, IFFCO Aonla lays much emphasis on customer satisfaction through quality objectives. To meet its quality objectives a full-fledged laboratory has been established to monitor quality of production process at various stages and as well as the inputs and final product Urea. Apart from this the laboratory also monitors the quality of liquid and gasses effluents discharged from the factory. The laboratory is well equipped with state of art instruments based on microprocessor technology, which have been found to be amply effective in conducting difficult analysis with ease and precision. Spectrophotometer, nitrogen analyzer, moisture analyzer, atomic absorption, dissolved oxygen analyzer, flue gas analyzer, plasma emission, data processors and gas chromatographs are some of the important instruments provided in the laboratory.

P.

FIRE AND SAFETY: -

Safety and fire prevention is being the primary factor of well being of an organization. Therefore, a well-equipped fire and safety section has been established in addition to various built-in safety features of the plants and their technology. Fire and Safety section has been provided with sophisticated and modern facilities like

fire fighting tenders, rapid intervention vehicle, fire proof clothing, personal protective equipment, explosive meters, safety belts, air breathing apparatus etc. To inculcate safety habit in each of the employee, various safety seminars, training and competitions are organized from time to time. A detailed On-site-emergency plan has been developed and practiced at regular intervals to maintain prepreparedness to meet any eventuality.

Q.

HUMAN RESOURCE DEVELOPMENT: -

Employees development leads to the organizational development. IFFCO has grasped this fundamental truth. A fully functional Training and development section has been created to provide learning avenues to the employees. Most of the employees are recruited as trainees and then required to undergo extensive off the job and on the job training on the various disciplines. Other managerial and development training is also arranged in-house as well as at the other prestigious institutions. The developmental activities do not end with employees but extended to the families also.

R.

COMMUNITY DEVELOPMENT: -

IFFCO being an institution is committed to work for the improvement of the socioeconomic conditions of rural population around the plant. Aonla unit has adopted several villages under its village development scheme. Hard pumps, road construction, school building, other amenities have been provided in the surrounding villages. Medical campus, free distribution of medicines, polio and diphtheria vaccines, family planning and social marketing are the few activities undertaken in these villages. Subah ladies club of township also plays active part in social welfare by running an education center for the education of poor children. Farmers service center has been established in village Sainda near Aonla Unit, which provide fertilizers, pesticides and seeds to the farmers.

S.

IFFCO TOWNSHIP: -

IFFCO Township is spread over an area of 560 acres having 1085 houses is situated on Bareilly-Aonla road in front of factory. It provides all modern facilities, amenities and recreational aspects to all the employees residing in the township. Township has its own shopping center, hospital, recreation club, cable TV, community center, open air theatre, swimming pool, stadium, temple and schools for the children of the employees. Apart from this, regular marketing bus facility has also been provided for the employees and their dependents. Our township is miniature of India having people from all corners of the country. All the festivals of India are celebrated with equal zeal and enthusiasm. The township is well maintained with planned row of houses, lush green lawns, trees, parks and wide roads and second to none of the settlements. Employees from all corners of the country with different tongues and cultures live in the township making it miniature India.

S.

COMMUNICATION: -

IFFCO Aonla unit is connected with ISDN lines with the outer world. The twotelephone exchange at plant and township provide the service of intercom network as well as DID function. The telephone network is based on state of art technology and considered to be highly reliable. Most of the offices and functional places have been provided with the intercom facility. Key officials have been provided with STD facility also for making connection to the outer side. The telephone numbers have been meticulously allotted as per the codification procedure; the plant has been allotted 4000 series and township is with 3000 series. The different departments and sections have been codified and intercom numbers are provided accordingly.

The STD code of India is 91 and this area (Bareilly) is 581. The P7T code allotted to IFFCO is 240. Hence, to utilize the DID system for making call from outside one has to apply numbers as under India code 91 Area code 581 IFFCO P&T code 240 Intercom No. for e.g. 3125

T.

SECURITY SYSTEM: -

The security system at IFFCO Aonla Unit is elaborated as under: The factory main gate is controlled by BOMBAY INTELLIGENCE SECURITY (INDIA) LTD., Which is an ISO 9001: 2000 Certified Company. All the personnel are issued I-card, which is to be shown to BIS guard on demand. While coming or going out of the plant except shift working times, one has to take permission from the controlling officer which shall be checked by BIS guard and recorded on the gate. All material taken inside or outside is authorized by key officials and recorded on the gate. Urea and other store material are passed through material gate with material dispatch advice procedure. V.

MEDICAL PROCEDURE: -

The medical facilities at IFFCO Aonla unit are as under: Plant is having dispensary, which provides first aid and manned round the clock. A 26-bed hospital in township provides required medical help to employees & dependents as well as other agencies connected to IFFCO. A team of 3 doctors and other trained staff is available in the hospital. The hospital is manned round the clock.

 For routine medical aid, the Doctor prescribes the medicine, which is available from chemist shop on payment, the hospital itself. The shop opens round the clock. For consultation from specialists treatment, patients are referred to select panel of doctors. outside

DESPATCH OF UREA: Each bagging plant i.e. PH-I & PH-II has capacity to bag / load 2000 MT of bagged urea per shift. Entire product is bagged in High Density Polyethylene (HDPE) bags of the size 930 mm * 610 mm. The weight of each bag is 130 grams and the gross weight after filling is 50.130 kg. IFFCO-AONLA transport department arranges wagons and trucks after urea dispatch instructions from our Marketing Division. The Urea is transported by Road to the nearby areas and by rake to the distant destinations. The movement of urea is decided by the marketing division under the guidelines of essential commodities Act of Govt. of India. An indent is placed by transport department to the railways for supply of rake. Similarly advise is given to transporters to supply trucks. AONLA have a implant Railway yard consisting of 08 railway lines for movement, rake receiving, rake formation and dispatch of rakes. The rakes are supplied by railways on our request. The railway locomotive brings the rake through our private railway siding originating from Bisharatganj railway station 9 km from our plant. The rake is received in our yard and the railway loco leaves the rake. All IFFCOAONLA in plant yard movement is done by AONLA plant staff and 3 Nos. locomotives. Each rake is of 2350 MT and trucks varying from 15 MT to 25 MT. The wagons after loading are handed over to railways for sealing and dispatch. Normally IFFCO-

AONLA producing 5200 MT of Urea hence plant load 2 rakes and rest by road everyday but at times the frequency varies.

About-DAP/NPK: Diammonium-Phosphate It is the most popular phosphatic fertiliser because of its high analysis and good physical properties. The composition of pure salt of DAP is N-21.19% and P205 53.76%. Fertiliser grade DAP is 18:46:0. NPK Complex Grades NPK complex fertilizers produced at Kandla are DAP based grades. At present two grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced. Granular NPK complexes are free flowing and do not pose any problem during handling and storage. However, exposure of material for long period to very high humidity may cause caking. Therefore, NPK complexes are bagged in quality tested HDPE bags to prevent ingress of moisture.

GRADING SYSTEM OF EMPLOYEES AT IFFCO, AONLA, BAREILLY

A. B. C. D D1. E. F. F1. G. G1. G2. H1. H2. I. J. J1. K. L.. M. N. O. P. M.D. (Managing Director) E.D. (Executive Director ) Sr. G.M/G.M. (Senior general Mgr./General Mgr.) Jt. G.M. (Joint General Mgr.) C.M. (Chief Mgr.) Sr. Mgr. (Senior Mgr.) Mgr. (Manager) Dy. Mgr. (Deputy Manager) Senior Officer Officer Asst. Officer Supervisor Supervisor Senior Operator Operator Asst. Operator Technician Asst. Technician Attendent Attendent Attendent Attendent

Organization Structure of Personnel & Administration (P & A) Department

Executive Director (Head office) Joint General Manager Chief Manager Senior Manager Manager Deputy Manager Senior personnel Officer/Senior administrative Officer Personnel Officer/Administrative Officer Junior Personnel/Junior Administrative Officer Assistants

RESEARCH METHODOLOGY (

GIVE NEW

CHAPTER)
All progress is in born of inquiry as it leads to the research which leads to know new facts. Research in the Business Management is essential as it leads to know the new facts and findings. The aim of research report was to study about various schemes of WPM at IFFCO Aonla Bareilly.

1. SAMPLING TECHNIQUE USED In consultation with our training in charge officer the sample size of 100 employees from M to G grades was taken .Simple random sampling was used. A. DATA COLLECTION METHOD

A.QUESTIONNAIRE METHOD
It is the technique to data collection by interviewing individual. The data has been collected by survey for which a Structured and non disguised questionnaire was designed and was to be filled by the workers. B. PERSONAL INTERVIEW METHOD

Along with questionnaire the personal interviews was also done as to know more and more information.

DATA Data collected was primary in nature research was and it

was not a good solution to rely on the secondary data only. (INCREASE RESARCH METHODOLOGY)

Analysis & Interpretation (GIVE NEW CHAPTER)

1) Channels through which employees and management communicates CHANNELS Proper channel Immediate boss Direct Departmental Head Union Percentage of employees 70% 10% 0% 10% 10%

Step by step channel Any committee/council Open door system

0% 0% 0%

10% 10% 0% 10%

0% Proper channel Immediate boss Direct Departmental Head Union step by step channel 70% Any committee/council Open door system

About 70% of the employees communicate to the management through Proper channel, while among the remaining 30%, 10% communicate through Immediate boss, another 10% through Union and another 10% through Departmental head.

2) Percentage of information shared by the management with employees Percentage of information 0%-25% Percentage of employees 20%

25%-50% 50%-75% 75%-100%

40% 20% 20%

20%

20%

0%-25% 25%-50% 50%-75% 20% 75%-100%

40%

About 40% of the employees say that about 25%-50% information is being shared by the management with them, 20% say that less than 25% information is shared, another 20% say that 50%-75% information is shared and another 20% say that more than 75% information is shared.

3) Kind of participation the management used to prefer

Kinds of participation Information sharing Consultative Decisive Associative Profit sharing Combination of Information sharing & Consultative Combination of Information sharing & Associative

Percentage of employees 30% 20% 0% 0% 20% 20% 10%

Information sharing

Accordin
Consultative 10% 30% 20% Associative Decisive

g to 30% of the employe es, manage ment prefers Informati

Profit sharing

20% 0% 0%

20%

Combination of Information sharing & Consultative Information sharing & Associative

on sharing participation only, while 20% say that consultative participation is only preferred, another 20% say that profit sharing is preferred, another 20% say that Information sharing and Consultative participation both are preferred by the management and another 10% are having the opinion that Information sharing and Associative participation both are preferred by the management.

4) Kinds of issues which are discussed with employees Issues Welfare policy Promotion policy Plant maintenance Routine work Staff placement Transfer policy To develop HRD activities Percentage of employees 13% 8% 25% 25% 4% 4% 21%

welfare policy Promotion policy 8% 4% 4% 25% 25% Staff placement Transfer policy To develop HRD activities Plant maintenance Routine work

21%

13%

The issues that are broadly discussed by the management with the employees are-Routine work, Plant maintenance, To develop HRD activities.

5) Presence of committee or council to communicate with management and implement things at employees level. Yes/No Yes No Percentage of employees 30% 70%

30%

Yes No

70%

Nearly 30% of the employees say that they are having Union and Officers Association to communicate with the management while, 70% of the

employees say that there is not any committee/council to communicate with the management. They either use proper channel or communicate directly.

6) Presence of suggestion schemes for workers Yes/No Yes No Percentage of employees 90% 10%

10%

Yes No

90%

About 90% employees say that they are having suggestion schemes.

7) The name of the schemes. There are following suggestion schemes for the workers-Safety scheme ,Power saving scheme, Profit & Plant Production Scheme, Bag Handling scheme, Quality scheme, Marketing channel development & Product range related scheme, Communication skills related scheme, Energy saving and low production cost scheme. 8) Degree of attention given by the management to employees suggestions 1 2 3 4 5

Degree of attention Very low Low Moderate High Very high

Percentage of employees 0% 37% 18% 36% 9%

9%

0%

37%

1-Very low 2-Low 3-Moderate

36%

4-High 5-Very high

18%

About 37%, 36%, 18%, 9% of the employees are having the view that low, high, moderate and very high degree of attention is given by the management to their suggestions, respectively. 9) Employees participation at the time of implementation of their suggestions. Yes/No Yes Percentage of employees 50%

No

50%

50%

50%

Yes No

About 50% of the employees take active participation at the time of implementation of their suggestions.

10) Management consultation with employees at the time of fabrication/modification of policy.

Yes/No Yes No

Percentage of employees 30% 70%

30%

Yes No

70%

Only 30% of the employees are being consulted by the management at the time of construction/modification of any policy.

Employees involvement in the implementation of policy.

Yes/No Yes No Percentage of employees 60% 40%

40% Yes No 60%

Only 40% of the employees are involved at the time of implementation of any policy.

12) Availability of manager for meeting with workers. YES/NO Yes No Percentage of employees 100% 0%

0%

Yes No

100%

All the employees say that the manager is always easily available for the meeting.

13) Degree of employees participation towards participation scheme. Degree of participation Very satisfactory Satisfactory Not satisfactory Percentage of employees 30% 70% 0%

70% 70% 60% 50% 40% 30% 20% 10% 0% Very satisfactory Satisfactory Not satisfactory 0% 30%

About 30% of the employees are very satisfied and 70% are satisfied with their participation towards the participation scheme at their unit. None of the employee is dissatisfied.

LIMITATIONS

In some areas at lower level the workers are not participative because mostly they are illiterate and did not understand the meaning of research because of this collecting data is a big problem for the research.

People were not giving the actual data because of this the ambiguous data has been collected and creates problem at the time of analysis and interpretation.

 Findings have been revealed by the researcher who are enthusiastic but have little experience in the field of research.

All workers concentrated yet there few who were very clinical about market survey and found that useless; some would for the best known to them gave wrong data or would not give any information at all.

CONCLUSION
Followings are the findings of the research: Most of the employees communicate to the management through Proper channel, while few communicate through immediate boss, Union and Departmental head. Most of the employees are having view that a very less percentage of information is being shared with them.

Most of the employees say that management prefers Information sharing participation only, While some say that consultative participation, profit sharing, Information sharing and Consultative participation all are preferred by the management and a very few are having the opinion that Information sharing and Associative participation both are preferred by the management. The issues that are broadly discussed by the management with the employees are-Routine work, Plant maintenance, To develop HRD activities.

A very employees say that they are having Union and Officers Association to communicate with the management while, Most of the employees say that there is not any committee/council to

communicate with the management. They either use proper channel or communicate directly. Most of the employees are having opinion that they are having suggestion schemes.

There are following suggestion schemes for the workers-Safety scheme ,Power saving scheme, Profit & Plant Production Scheme, Bag Handling scheme, Quality scheme, Marketing channel development & Product range related scheme, Communication skills related scheme, Energy saving and low production cost scheme. A very few number of employees are having the view that very high degree of attention is given by the management to their suggestions. Most of them say that very low degree of attention is given.

Not all, but some of the employees take active participation at the time of implementation of their suggestions. A very few of the employees are being consulted by the management at the time of construction/modification of any policy.

Very less number of the employees are involved at the time of implementation of any policy.

 All the employees say that the manager is always easily available for the meeting.

Only few of the employees are very satisfied and most of them are satisfied with their participation towards the participation scheme at their unit. None of the employee is dissatisfied.

RECOMMENDATIONS
Because of illiteracy at the shop floor level there is some problem in the production department so the workers should be literate at the higher secondary level. Management believes in-group activity, but because of some workers the group performance has been affected so the management should also focus on the personal behavior of the worker.

 If we talk about mid level in the organization, the work is being performed by the shop floor level workers by their instructions. But sometimes the objective is not cleared by them, which creates some problem, so middle level management should be clear and specific while giving the objectives of the organization. The important thing is that there must be a regular feedback from the workers. The IFFCO Ltd. should adopt new advertising techniques to create the awareness about its product. The IFFCO AONLA should be in close contact with the competitors strategies and changes in the product facility must be done regularly to fight the competitor brand.

BIBLIOGRAPHY

Tripathi P.C., HRD, Sultan Chand & Sons, 2005, p 324. Aswathappa k., Human resource & Personnel Management, TATA McGraw-Hill, 2005, p 396-409. John N.Newstrom & Keith Davis, Organisational behaviour-Human behaviour at work,TATA McGraw-Hill,1993, p 247. Monappa Arun, Industrial Relations, TATA McGraw-Hill, 2004, Thakur C.P.,& Sethi K.C., New Delhi, Shri Ram Centre for Industrial Relations, 1973, p 230. IFFCO Training Mannual. www.iffco.nic.

QUESTIONNAIRE
Name of Employee : - ------------Age : - --------Gender: - ---------Designation: - ------------------------Period of service: - -----------------Signature: - --------------------------

Department: - -------------------------------

This Questionnaire is constructed to study a project titled Workers Participation in Management which is a compulsory part of the two years MBA programme from RAKSHPAL BAHADUR MANAGEMENT INSTITUTE, Greater Noida affiliated to U.P. Technical University. Answers will be kept confidential & used for academic purpose only. Q1. Through which channel you and management communicate? 1) Through Proper channel. 2) Through immediate boss. 3) Direct. 4) Through Departmental Head. 5) Through Union. 6) Through step by step channel. 7) Through any committee/council (please mention name). 8) Through open door system. Q2. According to you how much information by management is being shared with you? 1) 0%-25%. 2) 25%-50%.

3) 50%-75%. 4) 75%-100%. Q3. According to you, what kind of participation the management used to prefer? 1) Information sharing only. 2) Consultative only. 3) Decisive only. 4) Associative only. 5) Profit sharing only. 6) Combination of --------------. Q4. What are the kinds of issues, which are discussed with you? 1) Welfare Policy. 2) Promotion Policy. 3) Plant maintenance. 4) Routine work. 5) Staff placement. 6) Transfer Policy. 7) To develop the HRD activities. Q5. Is there any committee or council of yours to communicate with management and to implement the things at your level? If NO what are formal procedure to meet manager? Yes No

Q6. Is there any suggestion scheme for workers? Yes No

Q7. Please mention the name of the schemes and methods? --------------------------------------------------------------------------------------

Q8. What degree of attention is given by the management for your suggestions? 1 2 3 4 5

Q9. Do they call for your participation in the time of implementation of your suggestions? Yes No

Q10. When a policy is being made/modified do the management consults You? Yes No

Q11. When a policy is being implemented, do they ask for your involvement? Yes No

Q12. Is manager easily available for meeting with the workers? Yes No

Q13. According to you what is the degree of your participation towards the participation scheme at your unit? 1) Very satisfactory. 2) Satisfactory. 3) Not satisfactory.