Project REPORT

On

LABOUR EFFICIENCY OF DIFFERENT LINES OF OSRAM Pvt Ltd.

SUBMITTED

IN

PARTIAL

FULFILLMENT

OF

THE

REQUIREMENTFOR TWO YEAR FULL TIME MASTER OF BUSINESS ADMINISTRATION (MBA) 2010-2012

Submitted To:
Mrs. KAVITA DAHIYA M.B.A FACULTY

Submitted By:
MONEY BHUGRA MBA/10/12

Bhagwaan Mahavir Institute of Engineering and Technology

Maharishi Dayanand University, Rohtak

DECLARATION
I MONEY BHUGRA ROLL NO. MBA/10/12 M.B.A 3rd Sem of BHAGWAN MAHAVIR INSTITUTE OF ENGINEERING &TECHNOLOGY, SONIPAT hereby declare that the report entitled on LABOUR EFFICIENCY is an original piece of work & the same has not been submitted to any other institute for the award of any other Degrees .The Seminar presentation of the report was made on & the suggestions given by the faculty members were duly incorporated.

Signature of Project Incharge. Mrs. Kavita Dahiya M.B.A Faculty.

Signature of the Candidate Money Bhugra MBA/10/12

Signature of H.O.D Mrs. Priyanka Sehgal

Principal, BMIET ( Dr. Y.K. Jain)

ACKNOWLEDGEMENTS
This project report prepared by me is a result of the joint effort of several helping hands of the personnel department of OSRAM INDIA PVT LTD. The knowledge of our theoretical studies is absolutely incomplete without its proper implementation and application in the diversified corporate world of today. I have been really opportunistic to be a part of the OSRAM INDIA PVT LTD during my summer training, which is one of the leading business houses in todays scenario.

An undertaking of study like this is never an outcome of efforts put in by a single person, rather it bears imprint of number of persons who directly or indirectly helped me in completing the study.

At the outset I would like to extend my sincere gratitude to MRS. KAVITA DAHITA (Faculty, MBA Deptt.) for providing the opportunity to carry out the research & for providing guidance during the preparation of the report whenever needed.

(Money Bhugra)

PREFACE
Labour is one of the most important cost components in a manufacturing concern. It directly attributes to the cost of the product. Hence, the efficiency of the labour directly contributes to the manufacturing cost. Higher is the efficiency lower is the product cost and vice versa.

There are two types of work force mainly:

Direct labour: This is also called the variable labour and hence constitutes the variable cost of the product and directly proportional to the volume which is also the subject matter of this project.

Indirect Labour: This does not vary proportionately to the volume and not directly involved in the production.

CONTENTS OF THE STUDY

CHAPTER NO. PARTICULARS
a. b. c. d. Chapter 1 Company Certificate Declaration Acknowledgements Preface Introduction to the project Significance of study Objectives of study Review of existing literature Focus of study Conceptualization Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Introduction to company Research methodology Introduction to the Topic Factors to increase labor efficiency Individual differences at Work Place Data analysis and interpretation Findings of the study Limitations of the study Conclusion Recommendations Annexure Bibliography

PAGE NO.

Chapter - 1 INTRODUCTION

SIGNIFICANCE OF THE PROJECT

Any activity without any use is wastage of efforts, money & above all the time. So if there is no advantage of doing any particular activity, that activity is worth not to be done. Following are the main advantages of this work undertaken by me & the benefits to the organization, which has been approached for this work: As this is the first research work undertaken by me, this research work has been particularly helpful for me in the manner that this exercise made me feel the practical aspects of organizational research instead of just providing a theoretical exposure to the concepts. This study will help the organization for promoting different courses for different sections of employees according to their needs. The organization itself can take this project as a document that can help them in implementation of various plans & policies in a more efficient & effective manner.

OBJECTIVE OF THE STUDY

The project entitled Labour Efficiency which was undertaken at Osram India Pvt. Ltd., Sonepat, is related to the efficiency of labour in each and every line of the company. The main objective of the study is: To analyze the efficiency of labour. To know the actual output per hour for different lines of Osram India Pvt. Ltd. To assist management to compute the actual labour cost per lamp To reveal the trend of costs of labour over a period of time in order to assist management to optimize the labour cost.

REVIEW OF EXISTING LITERATURE

To research any problem, it is necessary to review the existing literature. Various studies relating to different aspects of LABOUR EFFICIENCY have been conducted in the past. A brief review of some of the major studies in recent years is given below.

SOURCE 1
Union membership falls as strikes rise Sapa | 10 August, 2011 10:07 Membership of trade unions has declined although the number of work days lost to strikes has increased, according to the latest Adcorp Employment

Index.Membership of South African trade unions had declined from 4.3 million in 2000 to 3.2 million in 2010, said Loane Sharp, Adcorp's labour market analyst, in a statement.This trend was "out of sync" with the surge in strikes and work stoppages reported so far this year.In 2010, South Africa lost 14.6 million strikeinduced work days.This year, this figure would increase by 22 percent to 17.8 million, Sharp said.

SOURCE 2: The coming world of smaller banks

By Frank Partnoy, Dated: August 10, 2011 Typically, job cuts are good for shareholders because they reduce labour costs and improve efficiency. But these lay-offs have set off a labour-capital death spiral:

they are bad for employees but are proving even worse for shareholders, and the declines in the share prices of banks are putting yet more pressure on employees and will probably lead to more lay-offs. And so on, and so on.

FOCUS OF THE STUDY

It became quite difficult rather impossible to make judgment about the position of any business by way of analyzing the Actual Production per Hour of 3weeks. The present study covers a period from 21st may-10th June. A large period may prove inconvenient while a short period would not give desired result.

CONCEPTUALISATION
The concept of evaluating the workers in OSRAM INDIA PRIVATE LIMITED. is to know about the superiorworker interpersonal behavior so that it is known that why the LABOUR EFFICIENCY among workers is negative and what kind of changes should be brought so that the workersuperior behavior is strengthened to the extent so that everyone can work in a tension free environment.

Chapter- 2 Introduction Of The Company

INTRODUCTION TO COMPANY

OSRAM India Pvt. Ltd. Sonepat The plant of OSRAM India Pvt. Ltd. Sonepat was established by Birla Group of company as ECE Industries Sonipat in the year 1973 in collaboration with M/s Tungsram, Hungary. It is situated 45 km from Delhi, in industries-oriented

environment of Sonepat (Haryana).

In Oct.1998, ECE Industries Ltd. Sonepat was taken over by OSRAM India Pvt. Limited a wholly owned subsidiary of OSRAM GmbH. OSRAM India Pvt. Ltd. having its registered at New Delhi, was Primarily formed for sales and marketing operations in India. The company has got three regional offices at Bombay, Calcutta and Banglore in addition to 14 other distribution centers. The total turnover of OSRAM India pvt. Ltd. Were worth Rs.42 crore in acquisition, innovation and expansion has been regular feature of this plant. Currently a high speed CFL manufacturer line and slim tube manufacture line have been brought from (Germany). With this new induction, total investment at this to approximately Rs.100 crore.

OSRAM India Pvt. Ltd. has Government's approval for manufacturing and trading of the following lamps :

Metal Halide and High Intensity discharge lamps. Tri phosphor and energy efficient fluorescent tubes. automotive Halogen and Discharge lamps. Photo-Optic lamps for films, TV, Theatre, etc. Other high technology, innovation lamps for Medical, Germicidal, UV lamps. Incandescent Lamps.

Note: all figures are fictitious.

ENVIRONMENT, HEALTH SAFETY & SOCIAL POLICY

To ensure health & safety of its employees, prevent pollution and protect the environment by complying with relevant legal requirement. Prevent behavior which is integral to the quality policy shall be the guiding principle for implementation. To conserve natural resources by optimum utilization minimization wastage of Raw Material, water energy & other associated factors affecting the Environment.

This policy shall be deployed at all level of the orgn. and interested parties through awareness / training about EHS aspect and hazards and motivate them for active participation.

The management shall review EHS performance at regular interval for continual improvement.

OUR VISION

The expectations and targets of company are reflected in its policy and Continuous efforts for expanding its share in the market. The OSRAM India Vision 2010 Proves to be the statement of its goals and would shape its future in India. The highlights of OSRAM India.

Vision 2010 are OSRAM No.2 in lamps business in India. OSRAM India sales over INR 3 billion. OSRAM India leader in CFL, FO and ECG. OSRAM the most respected brand name in the country. OSRAM products available in all parts of India. Cost leadership in halogen, T8 Luminous, CFL,NAV Super and HQI.

OUR MISSION
Better Technology Better Quality Better Tomorrow

OUR VALUES
Customer Satisfaction. Commitment to Total Quality. Cost and Time consciousness. Innovation and Creativity Trust and Team Spirit. Respect for Individual Integrity.

COMPANY PROFILE

OSRAM GmbH is one of the three leading lamp manufacturers in the word with its headquarter at Munich (Germany). It is a company working with strong international outlook, competent & farsighted management, and team spirit working, among 3000 employees throughout the world. The worldwide sales for the year 2007-09 amounts to approximately 16,000 crore of Rupees. Of this huge amount, 88% was earned outside which emphasizes the companys strong international existence. Germany,

Today OSRAM is 90 years young the history of this world present giant can be traced back to year 1919 , when three companies - AEG, Siemens & Halske AG, and Duetsche Gasgluhlicht (Auer Gasellschaft)-pooled their

resources for producing filament lamps.

Today, Siemens AG is the sole stakeholder in OSRAM GmbH. The OSRAM trademark was registered back in 1906, making it one of the oldest internationally recognized trade names. The name 'OSRAM' had been derived from

"OSMIUM" and "WOLFRAM" the two German words for metals required for manufacturing the filaments.

The division with largest turnover is general Lighting. Innovation products as halogen lamps, compact fluorescent lamps, and metal halide lamps continue to show healthy growth. OSRAM is today world's largest manufacturer of

automotive lamps. It has also an excellent position in the field of photo optic lamps. Company has a considerable market share in electronic control gear sector by offering systems that integrate lamps with an electronic ballast. As an ISO 9002 certified company, OSRAM has got 51production facilities in 18 countries, catering the needs of customers in 146 countries. The

company was awarded the technical Oscar in march 1988 by the academy of motion picture arts and science for the invention and continuous improvement in HMI lamps for the professional motion pictures. Currently, company is spending 4%of its turnover R&D activities. It is at top in Europe and second largest lamp producer in North America (as OSRAM SYLVANIA).

In addition to Europe and North America, Asia is one of the most important growth center for OSRAM's innovation products. Specially, in 1994 Indian

subcontinent become a potential market for energy efficient lighting products. So, due to strong urge to explore the market here, OSRAM GmbH set up OSRAM India Pvt. Ltd. In 1994 for sales & marketing operations. The company has 100% foreign equity.

HISTORY
The history of OSRAM is bound up closely with the rapid development of lighting engineering. It was this company that in 1919 under one roof the scientific expertise and decades-long experience of the top three lamp producers in Germany. Only 1, 1919 a limited partnership, OSRAM GmbH, was called into existence in Berlin by the manager of Allgemeine Elektricitats -

Gesellschaft , Deutsche Gasgluhlicht - Aktiengesellschaft ( Auergesellschaft ), and the electric lamp production facilities of Sieman & Halske.

The Auergesellschafthad already in 1906 Registered the name OSRAM with the Imperial Patent Office as the official trademark forits incandescent and arc lamps. 1906 was thus the birth date of a trade name that was destined to win world renown : OSRAM. The origin of the OSRAM name came about thus : OS - (OS)MIUM which is a lamp making metal. The history of electric light and the history of OSRAM are inextricably intertwined. Again and again , new developments from OSRAM have

changed the way we live.

As early as 1925, for example, OSRAM made night time driving much safer with the development of the first twin filament headlight lamp worth high and low beams. These BILUX lamps became famous throughout the world. From

filaments to fluorescents - In 1936, OSRAM launched the first fluorescent lamp. Its economical light revolutionized artificial lighting in offices, shops, factories and public buildings.

Halogen light, a brilliant idea - By

including halogens in the filler gas,

lighting specialists as OSRAM set the incandescent lamp on a completely new course in 1960.

OSRAM has made constant improvements to the range. We have been able; for example to reduce the tube diameter of fluorescent lamps from 38 mm to 26 mm and less, which saves glass and fluorescent material and at the same time increases luminous efficacy.

INNOVATIONS
About 4% of turnover is being spent every year on research & development. OSRAM is an innovative company. Around 30% of the lamp sale achieved with products, which are less than 5 years old.

EMPLOYEES

As of Sept. 30, 2009, the OSRAM company world wide employed about 36,800 people. In Germany 10000 people were employed & outside Germany 25,800, which is 70% of the employees worldwide

WORLD WIDE SALES BY MARKET

In fiscal year 2009/2010 the world wide sales were DM 6.3 billion , up 12% on the previous year . world. The company's strong international focus is reflected by the fact that 88% of sales were generated outside of Germany. Nearly half of OSRAM's global sales are OSRAM is one of the three leading manufacturer in the

made in North America, where OSRAM SYLVANIA is the region's second largest lamp producer . In Europe OSRAM is also the market's second largest supplier. In Germany OSRAM is the market leader. Emphasis is also being placed on Latin America as well as on East & South East Asia. OSRAM has 51 manufacturing units in 18 countries with most of the production is being realized in the North America & Germany. Similar good The

growth in the sales has been marked by the OSRAM INDIA Pvt. Ltd. graph depicting the growth of the company has been displayed below.

OSCAR FROM OSRAM

OSRAM was awarded the technical OSCAR in March 1998 by the

ACADEMY OF MOTION PICTURE ARTS & SCIENCE for the invention

& continuous improvement of H.M.I. lamps for professional motion

pictures.

DESCRIPTION OF PRODUCT

Product Offerings From OSRAM India

The range of products which osram has to offer can be broadly classified

in to four groups:-

GROUPS

DESCRIPTION

AB

General automotive lamps

AM

Automotive lamps

FQ

Photo optic lamps

PL

Ballats* and luminanes

*In India BL will most probably be electonics ballasts. The main area of concentration so far has been on AB ( general lighting )and on FO (photo optics). The entire range of product brochures specifyingdesign feature are available at osram offices in India. 3.) Osram India Pvt. Ltd. has taken over lamp division of ECE industries limited satiated at Sonepat ( Haryana ) on Oct 1998. Osram India Pvt. Limited is now owner of the factory. Here different luminary products are manufactured in the following plants :-

1. GLASS PLANT. 2. LAMP PLANT. 3. COIL PLANT. 4. GLS PLANT.

PRODUCT OF GLASS PLANT :-

1. glass shells

60 mm round 60 mm mushroom

60 mm elliptical 60 mm egg type

45 mm round 75 mm elliptical

80 mm round 90 mm mushroom

110 mm round

2. tubular shells

36.2 mm to 38 mm diameter.

PRODUCT OF LAMP PLANT:-

fluorescent tubes

02feet

04 feet

PRODUCT OF COIL PLANT :-

filament and lead in wire

Now total production of fluorescent of fluorescent tubes is about 900000

tubes per month and different kinds of GLS production is about 3100000

bulbs per month. we have renovation plans for improvement in production

and quality of these two products.

PRODUCTS OF GLS PLANT :-

BC, CC, GLS

25W, 100W (230 volts)

BC,SC,GLS,MW 150W, 200W (250 volts)

ES,SC,GLS,HW

300W, 500W (250 volts)

Chapter 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH
RESEARCH IS SEARCH FOR KNOWLEDGE

OR RESEARCH IS SYSTEMATIC EFFORTS TO GAIN KNOWLEDGE.

RESEARCH DESIGN
A RESEARCH DESIGN IS THE FRAMEWORK OR PLAN FOR A STUDY WHICH IS USED AS A GUIDE IN COLLECTING AND ANALYZING THE DATA COLLECTED. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

TYPES OF RESEARCH DESIGN

Research design can be classified into following types:

Descriptive research design Exploratory research design Experimental research design

In this project I have used exploratory research design because it describes new ideas and events.

TYPE OF DATA COLLECTION

There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCES
These include the survey or questionnaire method. I used telephonic interview as well as the personal interview methods of data collection.

SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc. In this project I have used internet, company brochures, product brochures, and the company website as a secondary source.

Chapter - 4 Introduction Of The Topic

Product Catalogue
Lamp for generating Halogen Lamp Fluoreseny Lamp Induction Lamp

HID Lamp

O SRAM
India Pvt. Ltd.

CFL

Special Lamp
Automatic Lamp LEDModules

Luminaries

Product offerings from OSRAM India

OSRAM India are in a position to supply all products listed in the E-Catalogue with major focus on:

Incandescent GLS Lamps both in screw type E 27 and B22d caps Low Voltage and Mains Voltage Halogen Lamps A wide variety of Fluorescent Lamps including the latest generation of TriPhosphor Lumilux Plus Lamps.

The widest range of Compact Fluorescent Lamps, in particular, the retrofit Dulux EL which meets the Indian conditions of wide fluctuations in voltage, high ambient temperature and high humidity.

HID Lamps including high pressure Mercury Vapour Lamps (HQL), Blended lamps (HWL), High Pressure Sodium Vapour Lamps (NAV), Metal Halide Lamps (HQI) and other high discharge lamps for special applications.

Widest range of Automotive Lamps for 4 Wheelers, 3 Wheelers and 2 Wheelers.

Incandescent lamps Compact fluorescent lamps / Energy saving lamps Fluorescent lamps

Tungsten halogen lamps LED lamps High intensity discharge (HID) lamps Display and signal lamps and lamps for traffic light installations Light OLED light design Display/Optic Light management systems OSRAM Opto Semiconductors:

Special lamps LED systems,

Engines and Modules Automotive lamps Control gears Luminaires

LED and optical semiconductors

Assembly Process(Spiral)
Coating

Baking

Sealing
Mount Machine

Tipping

Exhaust Machine

Aging Machine

Basing Machine

Assembly Process(Stick Type)

Cutting Machine

Anskofo Machine

Coating

Baking

Sealing

Mount Machine
Fusion Machine

Pre-Heater

Exhaust Machine

Aging Machine

Basing Machine

PRODUCTION
The processes and methods employed to transform tangible inputs (raw materials, semifinished goods, or subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services.

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process and stems from the verb produce, from the Latin prdce(re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". The economic or commercial meaning of product was first used by political economist Adam Smith.

LABOR EFFICIENCY
LABOR FORCE
The total number of people employed or seeking employment in a country or region is called Labor force or Work force.

EFFICIENCY
A level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Efficiency relates to the use of all inputs in producing any given output, including personal time and energy.

LABOR EFFICIENCY VARIANCE

Labor efficiency variance is calculated by comparing the actual hours worked with standard hours allowed, both at the standard labor rate. The standard hours allowed figure is determined by multiplying the number of direct labor hours established or predetermined to produce during the period for which the variances are being computed. The units produced are the equivalent units of production for the labor cost being analyzed. Labor efficiency variance is also known as labor time variance and labor usage variance.

[Labor efficiency variance = (Actual hours worked Standard rate) (Standard hours allowed Standard rate)]

EXAMPLE:Assume that 1,880 hours are worked at a rate of $6.50 per hour to produce 530 equivalent units of product. The standard labor rate per hour is $6.00 and standard time allowed to produce a unit of product is 3 hours. Required: Calculate direct labor efficiency variance.

Solution:
Time Actual hours worked at actual rate Actual hours worked at standard rate 1,880 1,590 Rate = Amount $6.00 $11,280 standard $6.00 9,540 standard $1,740 unfav.

290

The standard hours allowed is the result of multiplying 530 units of product by three standard hours per unit. The unfavorable labor efficiency variance of $1,740 is due to the use of 290 hours in excess of standard hours allowed. Rates paid to the workers are usually predictable. Nevertheless, rate variances can arise through the way labor is used. Skill workers with high hourly rates of pay may be given duties that require little skill and call for low hourly rates of pay. This will result in an unfavorable labor rate variance, since the actual hourly rate of pay will exceed the standard rate specified for the particular task. In contrast, a favorable rate variance would result when workers who are paid at a rate lower than specified in the standard are assigned to the task. However, the low pay rate workers may not be as efficient. Finally, overtime work at premium rates can be

reason of an unfavorable labor price variance if the overtime premium is charged to the labor account.

CAUSES OF UNFAVOURABLE LABOUR EFFICIENCY/USAGE VARIANCE:- Poorly Trained Workers - Poor Quality Materials - Faulty Equipment - Poor Supervision - Insufficient Demand For Companys Product

Who is Responsible for the Labour Efficiency/Usage Variance?

The manager in charge of production is generally considered responsible for labor efficiency variance. If customers orders are insufficient to keep the workers busy, the work center manager has two options, either accept an unfavorable labour efficiency variance or build up inventories. The second option is opposite to the basic principle of just in time (JIT). Inventories with no immediate prospect of sale is a bad idea according to just in time approach. Inventories, particularly work in process inventory leads to high defect rate, obsolete goods, and generally inefficient operations.

Types of Labour in Osram India Pvt. Ltd.

Direct Labour

Permanent

Casual

Recruitment Process

Bhagwati Pvt. Ltd.

Surya Packing Pvt. Ltd.

Shivam Pvt. Ltd.

There are 2 types of direct labour in Osram India Pvt. Ltd.:i.) Permanent Labour which is recruited through recruitment process( HR deptt.), basically from ITI or internal training center ii.) Casual Labour which is recruited on daily basis from three contracting agencies:a) Bhagwati Pvt. Ltd. b) Surya Packing Pvt. Ltd. c) Shivam Pvt. Ltd.

Man-day

A unit of one days work by one person.

Actual Production Per Hour

The actual number of unit produced by one person in one hour.

Actual production per hour

Total output of a day Total number of man hours in a day

Chapter 5 Factors To Increase The Efficiency Of The Labour

FACTORS AFFECT LABOUR EFFICIENCY

In order to understand the causation of labour efficiency it is essential to know first what the term behavior actually means. Different behavioral scientists have defined behavior differently. Some observations are as follows; Behavior simply means as a response to certain stimuli which is observable directly and indirectly Behavior is observed directly by studying the responses of people to their work environment indirect observation refers to those people describe decision making processes and attitude verbally.

This is seen that human behavior is caused by certain reasons behavior is the result of interaction between individual characteristics and the characteristics of the environment in which behavior occurs.

Personal characteristics remain inside the person whereas environmental once outside the person. These personal and environmental characteristics secure as foundation of individual behavior in the efficiency of there work.

THE CAUSES OF HUMAN BEHAVIOR ON THE EFFICIENCY OF THE WORK

INHERITED CHARACTERISTICS: Some of the characteristics inherited from birth, may or may not be changed by external environment 1. PHYSICAL CHARACTERISTICS: - relate to height, slim body, and vision and stamina results in quality, performance in such jobs that require artistic skills. 2. AGE:- the age may influence the efficiency of labour in a physiological as well as psychological ways 3. INTELLIGENCE:-Some people are born Intelligent However intelligent can be enhanced with efforts, hard work proper environment and motivation. 4. RELIGION:-It play important role in determining the efficiency. High religious people have high moral standards. They strive for achievement and self fulfillment.

LEARNED CHARACTERISTICS: these characteristics involve individuals attitudes, values and perceptions about the environment in which he/she function. They are a result of parental values and expectation.

PERCEPTION: - Is a process by which individuals organize and interpret there sensory impression in order to give meaning to their environment. It refers to the manner in which a person experiences the world.

PERSONALITY: - It is a set of traits and characteristics, habit patterns and conditioned responses to certain stimuli that formulate the impression upon others.

It indicates the type of activities, jobs and assignment suitable to a particular person which will enable him to perform that task effectively.

ATTITUDES: - it may be defined as the way a person fells about something- a person, a place, a commodity, a situation or an idea. It addresses an individuals positive or negative feeling about some object.

VALUES: - values are important in relation to study of organizational behavior. Because an organization is a composite of attitude, perceptions, personalities and individual behavior of managers as well as workers. Values determine what is right and what is wrong. The values behavior pattern.

FACTORS AFFECTING LABOUR EFFICIENCY

ENVIROMENTAL FACTORS
It includes such variables as ECONOMIC FACTORS- the economic environment is an important determinant of individual behavior. All work is performed with in economic framework .the concept of economic environment is a synthesis of several factors like employment level, wage rate, economic outlook and technological change rate.People work for money but not only for money. However wages satisfied various needs of individuals.

POLITICAL FACTORS- the stability of government can affect the employment opportunities both in quantity and quality. Management structures and philosophies in controlled societies have a significant impact on decision, strategies and methods of implementation available to managers. The relative freedom available can affect carrier choice, job design, motivation methods and finally individual behavior.

SOCIO-CULTURAL FACTORS: people grow up in a particular society that shape their basic values, beliefs and behavior. Cultural vary from country to country and these variation produce different behavior across the country

LEGAL ENVIRONMENT: rules and laws are formalized ad written standards of behavior both rules and laws is strictly enforced by the legal system .laws relate to all members of society observing laws voluntarily allow predictability of individual behavior.

ORGANIZATIONAL FACTORS: the characteristics of an organization are also affects human behavior.

PHYSICAL FACILITIES: The physical facilities such as ventilation ,proper lighting , painting on wall, proper space for employee and like that put impact on employee behavior and performance..Hence physical environment at work place may be said to be the arrangement of people and thinks in such a manner. So that they may have a positive impact on the efficiency of the work.

ORGANISATIONAL STRUCTURES AND DESIGNS- It refers to the way in different departments in organizations are set up and the way in which the emoting relationship and lines of communication are established among different departments in the organizations.

QUALITY OF LEADERSHIP-The organizational establish a system of leadership and supervision to pride direction assistance, advice, training, to individual members. The behavior of a leader is therefore a potential source of influence on an individual. In other words the behavior of individual by a large extent influenced by their leaders.

REWARD SYSTEM:-Organization establishes reward system to compensate the employees. The behavior of an employee influenced by reward system of an organization.

Chapter 6 Individual Differences At Workplace

INDIVIDUALS DIFFERENCES AT WORKPLACE

INDIVIDUAL DIFFERENCE: it is seen that an individual differs from each other owing to their varying Characteristics that foam an individuals individuality. All is different .this is a fact supported by science. Each one is different from others just as each of their finger prints to different as far as we commonly known. Co is able to explain usual observations leads all of us to the conclusion that two people in the same job cannot behave in exactly the same way. People perform their jobs in different ways

1) Promptness in completing tasks 2) Conscientiousness in doing exactly quality work.

3) If manager wants to employee he has to recognize the overwhelming

Influences that individuals differences play.

INDIVIDUALS DIFFERENCES AT WORKPLACE

1) REWARDS-Depending upon different psychological make-ups, people differ in attaching importance to awards. 2) TYPE OF COMPENSATION PLAN- People also differs in the type of compensation plan they want. Some may refer to have compensation under the time wage system, while others may like to prefer piece wage system. 3) STYLE OF LEADERSHIP- People may differ in the style of leadership they want to work under. While some may like to work under autocratic leadership style, others may be in a democratic style of leadership.

4) STAMINA-People also differ in their stamina to bear with job stress. While some may prefer to flight stresses. 5) PERSONNEL CHARACTERISTICS- People differ in their personnel characteristics like age, sex, race, education, abilities etc.

INDIVIDUAL DIFFERENCES AND ORGANIZATION BEHAVIOR

In organizational behavior, too much emphasis is placed on studying individual differences .it is not that values, attitudes, personalities and similar personal characteristics are irrelevant to under standing organizational behavior rather organizations come.

With a host of formal and informal control mechanism that in effect largely shapes .direct and constraint members behavior that is structure tends to over-ride interpersonal differences.

Almost organizations have policies, procedures rules and other formal documentation that limit and shape the behavior. This formal documentation sets standards of acceptable and unacceptable behavior.

Almost all organizations differentiate roles horizontally, creating unique jobs and departments. The structure of these jobs allows others to predict behavior in those roles. Organizations also differentiate roles vertically by creating levels of management So, they create boss employee relationship that constrains employee behavior.

When you join an organization, you are expected to adapt its norms of acceptable behavior. The norms are unwritten rules but, they are powerful and controlling. An organization may not have a formal dress code but employees are expected to dress appropriately-which mean adapting to the implied dress norms.

Models Of A Man Based On Individual Differences

Study of human behavior in both regarding and necessary for management. It is doubtful whether the management can perform its function successfully without having understanding why people behave as they do. It based on individual differences; individual differences are classified in to certain models or type.

1) RATIONAL ECONOMIC MAN:-This is based on the doctrine of maximizing oneself interest. This assumptions are : Man is able to calculate the cost of his efforts and value of inducement he receives from his efforts. Man is able to evaluate the alterations available. Man is motivated by economic interest. The organization controls the economic activities. Organization can be designed to control rational feelings and avoid unpredictable behavior.

The different types of assumptions a manager makes about people with greatly determine the actions he takes in motivating and controlling people.

In simple rational economic model people can be induced to produce more by providing economic incentives. This works very simply, that is people are engage by the organization for the productive purpose. It will continue to give them incentives till it receiving matching contribution from them.

The economic incentives can work till man is not reasonably satisfied by a need of money. Though money is such a factor that its need can never be satisfied because it may purchase many things through which people may satisfy their other needs within organizational context. The role of money is to maintain the people n the organization and beyond that is not able to provide incentives to people.

2) SOCIAL MAN:-It is based on the doctrine that man being part of the society, is influenced by a social forces and seeks satisfaction from social relationships. Man is motivated by its social needs. Man is more responsive to group pressure. He will obey managements order as long as these are in conformity with his social needs. Management should organize work in such a way that it provides not belongingness. Social man concept is the invention of researchers which behavioral scientist has carried out from time to time begom hawthorn experiments.

3) ORGANIZATION MAN: - William white who gave this concept believes that value of loyalty to the organization and co-corporation with fellow workers is important for man. The social ethics are guides of organization. The group is a source of creativity. Belongingness is the ultimate need of individual.

Generally organization means emphasis that there is no conflict between organization and interpersonal. Even if there is any, it can be overcome by sacrificing the individual interest in favor of organizational interest. Its implications is that management will design its various actions high will satisfy the people. People will not see their interest differently as the organization is to take care of their interest.

4) SELF ACTUALIZING MAN: - It suggests difference in the way man can overcome limitations to work .the managers normally take following. The various needs can be put in hierarchical. Man moves from immaturity to maturity. Man is self motivated and self motivated managers try to create normal

Achievement of people to release greater potential for commitment to Organizational goals This model is based on the assumptions that are man is self motivated and controlled. Man works. To satisfy is needs, in a hierarchical orders arranged by Abraham Maslow physiological needs, safety and security needs social needs, esteem and status needs and self actualizing needs.

ABILITIES:It is an individual capacity to perform the various tasks. In a job, Ability is the criteria used to determine what a person can do ability directly influences an employee level of performance and satisfaction. In order to get compatible ability, the management can do the following:

The management must follow effective selection process. This process will

improve and provide a compatible individual. A job analysis will provide information about jobs currently being done and

the abilities that individuals need to perform the job adequately. The management ,after analyzing the job , can invite applicants .applicants

can then be tested ,interviewed and evaluated on the degree to which they possesses the necessary abilities. Promotion and transfer decisions should reflect the abilities of individuals in

the organizations. Management must be cheerful in accessing critical abilities that will be

needed in the job. In order to improve abilities, modifications can be made in the job. However,

three should b no significant impact on jobs basic activities. Finally man agent has an alternative in the regard. A final alternative is to

provide training to employees. This is applicable to both ne workers and present workers. Training can keep the abilities of workers current or provide new skills as times and conditions charge. By all this the efficiency of the workers will increase.

Chapter - 7 DATA ANALYSIS AND INTERPRETATION

(a) SWOT ANALYSIS

STRENGTHS:a) The globally cost competitive b) Adheres to strict quality controls. Has access to latest technology. c) Provides support to critical infrastructure and metal industries.

WEAKNESSES:a) Industry has a lower level of research and development capability. b) Industry is exposed to cyclical downturns in the automotive lamps. Most component companies are dependent on global majors for technology

OPPURTUNITIES:a) May serve as sourcing hub for lamps globally. b) Majors significant export opportunities may be realized through diversification of export basket. c) Implementation of value added tax vat) in fy2004 will negate the cascading impact of price.

THREATS:a) The presence of large counterfeit components market poses a significant threat. b) Pressure on prices from gems continues. Imports pose price based competition in the replacement market. Further marginalization of smaller players likely outlook

(b) PESTE ANALYSIS

POLITICAL ENVIRONMENT The stability of government can affect the employment opportunities; both in quantity and quality .politically unstable environment have difficulty and attracting experience problems in maintaining steady level of employment. The political ideology of a country affects interpersonal behavior primary through relative freedoms available to its citizens. Management structures and philosophies in controlled societies have a significant impact on decisions, strategies, strategies and methods of implementation available to managers .The relative freedoms can affect career choice, job design motivation methods and finally efficiency of the labour.

ECONOMIC ENVIRONMENT The Economic environment is an important determinantfor the efficiency of the labour. All work is perform with in economic framework .the concept of economic environment is a synthesis of several factors, like employment level, wage rates, economic outlook and technological change. People work for money but not only for money.however have wages satisfied various needs of an individual. It is well known that wage attract people to certain organizations and determine their satisfaction on jobs. Inequality in wages will have adverse effect on employees

SOCIAL ENVIRONMENT People grow up in a particular society that shape their basic beliefs, values and behaviors. Culture varies from country to country and these variation produce different behaviors across the country .culture vary between two regions with in a country too and these variations produce different behaviors across the country. Work ethics, achievement needs, effort reward expectations and values are important factors having behavioral implications as suggested by Stephens s p.robbins.it always desirable for organization effectiveness that direct there must be direct relationship between effort and reward.

TECHNOLOGICAL ENVIRONMENT It is seen that technological change is included as an economic factor because of potential effects on individual job opportunities Technological change has its strongest effect at lower level jobs although increased automation, computerization and more sophisticated production technologies can affect individuals at all levels.

LEGAL ENVIRONMENT

Rules and laws are formalized and written standards of behavior. Both rules and laws are strictly enforced by the legal system .laws relate to all members of society. Observing laws voluntary allows for predictability of individual behavior which will give a great impact on the efficiency of the labor.

ACTUAL OUTPUT PER HOUR OF DIFFERENT LINES

OUTPUT MAN- OUTPUT/MAN HOURS -HOUR PRODUCTION 300216 6804 44.12 LINE-1 ASSEMBLY 410980 9656 42.56 LINE-1 PRODUCTION 368260 4096 89.91 LINE-2 ASSEMBLY 373820 17144 21.80 LINE-2 170978 5496 31.11 SPIRAL

LINE

Chapter 8 Findings 0f The Study

FINDINGS OF THE STUDY

Most of the workers have a friendly relationship with their superior as well as their colleagues; this in turn depicts the open communication available in organization. Most of the workers are often guided by their supervisors in their sphere of work and agree that they understand their work pressures and problems and try to solve them if it is within their reach. Most of the workers feel that unbalanced interpersonal relations affect the efficiency level of employees mainly due to stress which is mainly caused because of individual and organizational related factors. The negative behavior of workers is mainly due to psychological and behavioral problems although they get full co-operation and unbiased attention from their superior in their work place. Group cohesiveness prevails among different groups in org. mainly due to competition. No superior is afraid to express any kind of views about the worker to him. To some extent, the management is concerned about maintaining good relations with trade unions.

Chapter 9 LIMITATIONS OF THE STUDY

LIMITATIONS
I had put my best effort in gathering the data and i have tried my level best that the data provided and the survey done are authentic as they could be, but there are some limitations, which are mentioned below : The study period is limited, the researcher has to collect the necessary and important information within the limited period of time and it is not possible to collect it, due to lack to time. Some consumers give half-hearted response or false information, which may lead to wrong conclusion. It is not possible to carry out the detailed survey due to limited finance. The crew members were hesitates to speak freely as they feared the informations to leak in the head office.

Chapter 10 Conclusion

CONCLUSIONS

Labour efficiency of Production Line-1 is 44.12 per hour. Labour efficiency of Assembly Line-1 is 42.56 per hour.

Labour efficiency Of Production Line-2 is 89.91 per hour.

Labour efficiency of Assembly Line-2 is 21.80 per hour.

Labour efficiency Of Production of Spiral is 31.11 per hour.

Chapter 11
RECOMMENDATIONS

RECOMMENDATIONS
On the basis of my findings and conclusion my suggestions to the company are: To know why 20% employees are not satisfied with their superiors and try to solve their problems.
Equal opportunities are given to all to express their feelings in the meetings.

To realize the employees who are working at godowns that they also have Freedom to take initiative in regard to change in procedure.

Give more importance to the hr department as it plays a key role in an Organization. Mostly recruitments are internally, but there should be external recruitments so that company get more benefitted.

Chapter 12 ANNEXURE

Chapter 13 BIBLIOGRAPHY

BIBLIOGRAPHY
S.No. Title Author Publication

Financial Management

Khan & Jain

Tata McGraw Hill

Mgt. Accounting & Financial Mgt.

R. K. Mittal

V.K. Publication

Management Accounting (Principles & Practices)

R.K. Sharma S.K. Gupta

Kalyani Publication

Research Methodology

C. R. Kothari

Wishwa Prakashan

Personal Discussion with the executives & other staff member of F&A Dept. of the Company.

Newspaper and magazines:

Websites: www.osram.com www.google.com www.osramindia.com