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An organizational study is the systematic study about how people - as
individuals and as groups - act within organizations. It involves the study of the
structure and functioning of its departments. Organizing is one of the important
functions of Management. Almost all the organizations are different but they have
certain common features. All are collection of people, linked together by formal and
informal relationships. They have hierarchical orders that are engaged in co-operative
activities and they all have identical boundaries. So the study of people in organization
is important for future managers. Structure of an organization is very important for its
functioning and growth. It provides the basic frame work for its progress and
expansion. For future managers, it is imperative to study the organizational structure
and functioning of successful organization so that they as future managers may guide
organizations towards success and profitable functioning.
This study was conducted at forest industries Travancore limited. It is a Kerala
government company established in 1946. This study enables me to get more
knowledge regarding the various departments of the organization and their functions as
well. The project on organizational studies at forest industries help me to know how
carefully each department is helpful for the smooth functioning of the organization.
The study can be helpful to understand the production and the methods used for

the preservation.
The study helps to understand different management activities.
The study helps to understand the various functions of each department.
It help to identify the factors needed for motivating employees.
Get an insight of the business concern.


There is something that cannot be understood by mere reading of textual matter.

There is a need to see the application of textual knowledge be put into real life practice.
The MBA course so far has provided with only theoretical knowledge regarding the
various management field sand aspects. The industrial familiarization program has
enabled to understand the practical use of the theoretical perspectives.
To study the overall functioning of the company and to understand the duties and
responsibilities performed by employee at different level in the organization

To understand the history, growth profile structure and future plans of the

To understand the hierarchy structure followed in the organization.
To conduct a SWOT analysis.
To determine the function and procedure of various departments in the

To interact with the manager at different levels and know their responsibilities

and routine activities.

To observe their work place and to interact with them.
To give a profile of them under study.
To undertake a study profitability of the firm.

Data required for the study has been collected from the primary and secondary
source. Primary data is collected through methods like observation and interviews with
personal manager, technical and non-technical workers, clerk, labors, etc.. Secondary
data is collected through various other sources like journals, magazines, books.


The primary data was collected through the personal interview and interaction
with the workers in the organization and also physical observation.

The secondary source included;

Organization manuals.
Official records.
Annual records.
Departmental manuals.
Official website of the company.

The data collected from companys departmental manual added key information to this
report and helped to understand the process carried out by each department in details.


The study conducted for a period of 02/05/2016 -31/05/2016.
The staffs were co-operative, but they were constrained by time due to their
huge schedule.
The company personnel do not reveal the trade secrets and some confidential
information like financial and marketing etc..
There is no choice for finding the problems ; markets etc. because there are
no research activities are carried out.
Since the job satisfaction of the employees is a mental attitude , it cannot be
measured accurately.
The time duration of the study was only 30 days, It is not possible to do full
justice to the study with in such short period.

The global furniture market can be broadly categorized into four categories domestic furniture, office/corporate furniture, hotel furniture and furniture parts.
Globally, domestic furniture accounts for 65 per cent of the production value, whilst
corporate/office furniture represents 15 per cent, hotel furniture 15 per cent and
furniture parts 5 per cent According to a World Bank study, the organized furniture
industry is expected to grow by 20 per cent every year. A large part of this growth is
expected to come from the rapidly growing consumer markets of Asia, implying
significant potential for growth in the Indian furniture sector.
The worldwide furniture industry promises significant growth opportunity in
near future as the global economy and worldwide real estate industry is booming at the
present moment. The growing disposable income is also driving the growth of the
worldwide furniture industry. The furniture industry includes manufacturing of a wide
range of home furnishing products and designed interiors related to offices, households
and institutions.
The furniture market in developed countries like the US and Europe was
heavily affected by the economic turmoil in 2009, but the market registered growth in
2010. The furniture market in the emerging countries like China and India has a

significant growth opportunity in near future. The market in the emerging countries is
expected to drive the growth of worldwide furniture market in the future.
The growth in the world economy, real estate industry, and urbanization is
driving the growth of the worldwide furniture industry. Low cost furniture producers
like China, Vietnam are playing a significant role in the competitive landscape of
furniture industry. The furniture producers are focusing more on retailing their products
to attract new customers. However, scarcity of skilled labor, transportation, and cost
optimization continues to be significant challenges to the furniture industry.
The report analyzes the global furniture market with focus on US, UK, France,
India, and China. The drivers, trends and challenges for the industry have been
analyzed. The report also profiles the major companies with a discussion of their key
business strategies.
By combining SPSS lnc.'s data integration and analysis capabilities with our
relevant findings, we have predicted the future growth of the global furniture market.
We employed various significant variables that have an impact on this industry and
created regression models with SPSS Base to determine the future direction of the
industry. Before deploying the regression model, the relationship between several
independent or predictor variables and the dependent variable was analyzed using
standard SPSS output, including charts, tables and tests.


As of 2006, the Indian furniture market is estimated to be worth US$ 7,922
million. Of this, wooden furniture accounts for US$ 1,358 million. About 11 per cent
(US$ 152 million) of this (wooden furniture) is imported and imports are growing at
50 to 60 per cent every year. India was the largest furniture importer in the world in
2004- 05, with a 17 per cent share in the furniture imports worldwide. A total of 10,
476 importers shipped furniture to India during this period, mainly from Italy,
Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.
The furniture sector in India makes a marginal contribution to the Gross
Domestic Product (GDP), representing about 0.5 per cent of the total GDP. The major

part of this industry, approximately 85 per cent is in the unorganized sector. The
remaining 15 per cent comprises of large manufacturers, such as, Godrej & Boyce
Manufacturing Co. Ltd., BP Ergo, Feather]ite,Haworth, Style Spa, Yantra,
Renaissance, Millennium Lifestyles, Durian, Kian, Tangent, Furniture Concepts,
Furniturewala, Zuari, Truzo, N R Jasani& Company, V3 Engineers, PSL Modular
Furniture, etc.
The range of indigenous furnit ure available in India, includes both residential
and contract system furniture. Manufacturers in India usually use a three-tier selling
and distribution structure, comprising of the distributor, wholesaler and retailer. The
market is mainly concentrated in A, B and C category cities (the top 589 cities). A and
B type cities together constitute 33 per cent of the total market. With a healthy
economy and increased household and institutional spending, the market is growing
steadily. As with the global market, home furniture is the largest segment in the Indian
furniture market, accounting for about 65 per cent of furniture sales. This is followed
by, the office furniture segment with a 20 per cent share and the contract segment,
accounting for the remaining 15 per cent.

Hindustan Newsprint LTD

Kerala State Bamboo Corporation

Travancore Plywood Industries

Kerala State Wood Industries LTD., Nilambur

Forest Industries (Travancore) LTD., Aluva

Western Indian Plywood

Punnaloor Paper Mills

Forest Industries Travancore, a Kerala government company established in the
year 1946, is engaged in manufacture of wooden furniture and joineries (windows,
doors, ventilators etc). It is located at Thaikkattukara, near Aluva which is 15 km north
of Kochi and 2 km south of Aluva by the side of National Highway 47.
Forest Industries Travancore limited (F.I.T) was incorporated on 10th August
1946, under the Travancore companies act of ME 1114 with the object of exploiting
and selling timber and other forest product from the malayattoor division and
elsewhere in the state of Travancore.
FIT is a Kerala government undertaking under the Department of Industries. It
is registered under register of companies and registered as a SSI unit. The unit became
a Kerala government company in the year 1960. The unit was originally the agency of
the FACT for producing wood from Kerala forest department but since 1962, FACT

change of their process and therefore the FACT related operations were discontinued
from 1963.
From then onwards FIT's main activity is wooden furniture manufacturing to
meet the needs of government of Kerala and commercial sectors. FIT is the only
government owned company in Kerala solely engaged in manufacture of wooden
furniture and joineries. It's main strength is its half a century long reputation of
maintaining consistently superior quality of products both in durability and finish.
The initial authorized capital was Rs. 1 core made by share of Rs. 10 each. But
the authorized capital was revised to 50 lakhs by a special resolution passed on 31 st
Dec. 1957.
The Companies Act 1956 was made applicable to the company by special
resolution passed at the annual general meeting held on 27th June 1960.
The main mission of the company is to supply qualified furniture and joineries
at competitive price to customers ensuring customer satisfaction. It is concerned about
environmental and safety of the company.
Improving and sustaining healthy living conditions through conservation of
biodiversity, protection of environment, soil, water etc. and empowering forest
tribes, woman and other weaker section of the society through scientific,
transparent and responsible methods.
The main objectives of the Forest Industries Travancore Limited are..

To produce and market high quality products at lower cost

To improve operational efficiency to maintained optimum productivity
To increase the profit without sacrificing quality of product
To promote organization development and to upgrade the quality of human

To improve the safety measure s and provide best working condition in the

To upgrade the machineries

FIT'S Main Output Are;

1. Wooden products
2. Modular workstations
3. Interior decorations
4. Aluminium partitions
5. Civil contracts
6. Electrical contracts.

FIT'S Share at Present

Government of Kerala 77.41 % Financial
institutions -1.14% Public21.45%
FIT is situated at Thikkattukara near Aluva. This is 15 km north of Kochi and
2 km south of Aluva by the side of National Highway 47. The company possesses
9.095 acres of land of which 1.475 acres is freehold land and 7.62 acres of land is
leasehold land. The administrative and factory buildings are situated in the
leasehold land.
The main competitors of FIT are CADCO and SIDCO etc. Mainly FIT has
two types of customers, the state government and private members.

The company always has an attention to adopt and accept modern technologies
in its plants. They introduce several innovations and modernizations schemes to
achieve higher productivity and energy conservation environmental control and
economy inputs. The company markets their product with a view to profitability.
FIT has no subsidiaries, branches etc... They have only one office at
Thaikkattukara, Aluva. They only the monopoly in this field.
The Forest Industries (Travancore) limited was established in 1946, is only
government owned company in Kerala exclusively engaged in the manufacture of
wooden furniture and joineries.
Over the last six decades, FIT has done its part quite efficiently to provide high
quality furniture at reasonable rate. State of the art, high precision machinery and a
highly skilled work force ensure that their product attain the best possible quality.
Apart from wooden furniture, FIT also manufacture steel furniture, does custom
interiors, aluminum /steel fabrication, modular work stations for corporate civil/
electrical works etc.
FIT has a wide range of home furniture and decor solutions to provide the
warmth and comfort of a relaxed family life. The range includes: Sofas, Cabins,
Telephone stands, Centre table, Corner stand etc..


FIT is based on wooden things and now the industrial scenario of the company
is continued to be under depressed condition. Hence a part from manufacturing of
furniture and joineries, company as a part of diversification program has already
entered into interior decoration; Aluminum steel subtraction providing facilities for


computerization such as marketing of computer cabins, partition works supply of

computer furniture and modular works and all type of civil work.

There are eight member team of board of directors to manage FIT. The
managing director of the company looks after the day to day affaires. The executives at
different levels help the MD in carrying out his work smoothly. There are directors to
assist chairman and managing director. The directors also include those nominated by
the government of Kerala.
FIT maintained a very healthy relation with employee trade unions. There is no
unrest in past few. The atmosphere of the trust and mutual understanding is developed
between management and labor union. There are 4 recognize trade unions are;

FIT staff and workers association

FIT employee union
FIT employees federation


Kerala government.
Government institutions.


Board of Directors

Managing Director

Purchase &


Sales &






Finance &

Personal &









Security Staffs

Figure : 1


In every organization there are general management practices. These general
practices are the backbone of the success of the company. It provides the clear
information about the organization about the organization .Even a layman can
understand what type of environment exists in the company through study about the
general management practices. Important general management practices are.
In Forest Industries Travancore Ltd, they are always looking for find out the
opportunities arising in the future, they analyses the economic trend and situation.
Their planning process beings only after going through a detailed analysis of the new
opportunity. All the information they are collecting from various sources like the type
of customers, circumstance, product quality, etcThis figure and facts help planning to
be more realistic. Goals are which bind the whole company. There is a tie between
planning and objectives for making awareness to their employee about their duties.
Since they follow a motto best result will be achieved only when the best way of doing
work is selected they are seeking various ways through which organizational goals can
be achieved in best manners.
Any course of action may be suitable but it may involve huge investment and the
other may involves few amounts but it may not be very profitable. i.e., they study about
the performance of various actions and choose comparatively best one. In planning
process, Board of Directors and departmental managers are participating related with
office and administrative matters.
Decision making is an important matter in an organization. Every day they have
to decide about doing or not doing a particular thing. A decision making may be related
to problems. This process helps in solving the problems. Before making a final


selection a number of responsibilities are selected. A decision needs some sort of

predication for the future on the basis of past and present available information.
If a problem raised they try to identify the real problem, and analyzing the
problem, by analyzing they can understand the root cause of the problem. They search
for the alternative ways to handle the problems, in the light of past experiences. In case
of past and present situation are similar they can select earlier alternatives. The
alternative one giving better result is selected. Then the final decision is taken. The
decision is committed to the concerned person for action. Here in Forest Industries
Travancore Ltd major decisions are taken by the Board of Directors itself.
Every activity of an organization is mainly depending upon communication,
processing and storage of information. Management needs some kind of information
before decision making. Management deal with organizational functions and managers
drive the organization by planning its future, organizing and controlling its present and
directing others in the organization to work towards their common objectives. Every
decision requires information as an input. This need for information is met by a set of
information system in a synchronized manner, collectively called Management
Information System.
In this world communication is very important part. Communication has certain
purpose such as:

To provide orders and instructions, in connection with their duties.

To solicit information from employees
To keep employees informed
To prevent employees turnover
To make personal pride
To maintain technological edge in the field of IT


Control procedures followed in an organization. The use of objective standards
enables the supervisor to manage their duties, by providing quick information of
deviations. In the use of duties of personal as well as in the case of organizations


discipline the company follows certain measures. Here in Forest Industries

Travancore Ltd, the controlling processes are done by the general managers and the
major control issues are dealt by the Board of Directors.
Strategy is an action which sets the direction that the company will be
taking. It is a decision making choice and would involve consideration for internal
strength and weakness and external environment affecting the company.
A top level manager is expected perform creative functions of laying out
goals and policies to pursue his subordinate to work with confidence. The duties
and responsibilities of the managers are as follows:
Human Resource Manager.

Manage all man power related activities.

Liaise with local authorities and political parties.
Ensure that proper records and maintained regarding employee welfare.
Maintain salary records.
In charge of company security.
Organize board meetings.
Manage canteen activities and labor accommodation.

Finance Manager

Supervise all accounts functions.

Ensure that proper accounting practices are followed.
Ensure that all taxes are paid on time and as per law.
Proper sales tax and excises duty records shall be maintained.
Follow up on payments from clients.
Liaise with auditors and bank.
Ensure that cost escalation clauses of all contractors are properly followed up.
Prepare management report on cash flow.
Ensure that bank payments are done on time and without incurring penalties.
Monthly outstanding collection statement to be prepared and inform/contact the

client for pending payment.

Prepare monthly income and expenditure statement with separate head wise.


Marketing Manager

Preparation of tenders for sales

Market the product and obtain sales orders.
Prepare sales targets and ensure that sales targets and achieved
Ensure that production work orders are issued and delivery dates are met.
Ensure that product quality is maintained by production as per clients orders.
Follow up with clients for payments and sales promotion.
Ensure that good working relations are maintained with clients.
Daily monitor the stock and orders.

Purchase Management

Carry all purchase activities of the company.

Ensure that all raw materials and on time as per the requisition raised by

production, maintenance and office.

Ensure that all stationary items are purchased as required.
Ensure the purchases are done on a competitive bid and most economically at

the optimum price.

Ensure that payments are done as per the terms of the purchase order and

checking of general manager.

Stock control to be checked with production manager inventory to be

Production Manager

To ensure optimum machine utilization so as to attain production target.

Man power allotment as per the requirement.
Ensure statistical quality work.
Work execution as per the requirements of the client.
Contract employees wages report.
Work order analyze before the execution.
Ensure the quality assurance.



FIT has mainly five functional departments,
The purchase department handles the purchase activities. The main
function of purchase department is to procure raw materials, machines, tools etc.,
needed for production at the right time at the right quantity from the kind of
suppliers with right investments. Purchase manager is the head of purchase
department. Purchase manger is assisted by store keeper in charge and under him
there is material Assistant. The purchase manager reports to Managing Director.
The purchase department shall ensure that:
FIT requirements
Ensure uninterrupted production through supply of materials
Correct specification of materials is provided in the purchase order
The purchase items conform to the requirement of FIT.
Materials required are identified, inspected and stored
Materials received in store are preserved and finally issued to user
Identify and control excessive storage and wasteful consumption


There are two types of purchase. They are cash purchase and credit
purchase. Credit purchases are settled within 30 days. Purchase items like raw
materials, machines and machine parts, office stationeries etc. are purchased
according to the requirements of other department of the organization. Final list of
purchase items are prepared by the purchase department and given to the Managing
Director. If the MD approves the lists then the next step is to purchase the items.
The raw material used by the company can be divided into direct and indirect
materials. Direct materials include teak wood; rose wood, Sal, aanjili, pingoda etc. are
purchased through auction. It is mainly from nilambur forest depot. Forest Depot send
auction chart to FIT which include the details about timber. FIT purchase timber
through yearly tender. They may recommend procuring timber based on, quality and
price. Glass used for teapoy is also purchased through quotation
Other raw materials like plywood, Formica sheet, Fevicol, screw nut, bolts
etc. are directly purchased from the manufacturing company in order to get the
advantage of 16% excise duty claim.
The following are the manufacturing company

- Western India Plywood Kannur

Formica Sheet

- Formica India Division Pune


- Pedilite Industries



Managing Director

Purchase Manager

Assistant Manager


Figure : 2



The next department of forest industries (Travancore) limited is the material
and storage. According to forest industries the storage is the life blood of their
business. It provides each and every material to the workers in the plant. The store
manager provides the things. Each and every activity is done under the excellence of
the stone manager.
The system followed by the store management is first in the first out method
(FIFO). Under this method material is used from the earliest consignment on hands
and price a the coast at which that consignment was placed in the stores this method is
suitable in times of falling price because the issue price of material to jobs or works
orders will be high. FIFO is one-of the method that to be used to be used to valuing
material issue. The main through of this department is one product at one place. Facer
maintaining FIFO forest industries maintained a butcheries register. And they provide
only qualified material for manufacturing.
Each every product or materials have own characteristic of identification. They
give more importance for the preservation of the product. They use different types of
preservation method for different product or give they give importance to give
preservation to the product. They provide preservations in the group wise. Same
products have one preservation method.
Forest industries Travancore have their own style to store different material ie
fast moving and commonly used products are kept in one place. This is more helpful
for the smooth and fast working of the manufacturing process.
The workers in the plantation collect the required materials and storage
department they use materials registration and issue note (MR) form for collecting the
materials from storage.


The supervisor check the need of the worker is correct or not. When the worker
tell their wanted things for their work. After checking the supervisor list the wanted
materials in the materials requisition form. Then sign in. Then it will give to the
material and storage department. Then the worker can collect the wanted things from
the store.
This process is helpful for the forest industries to know how many materials
are used by the worker and also avoid the wastage of materials by the worker. Only
wanted items are only provided.
They also conducted monthly stock review for find out next month
requirements and then the information passes to the purchase departments and then the
information passes to the purchase departments to make appropriate purchase.
When the order is accepted by the company those orders have a number. No
number means acceptance order number. This no number and the card numbers are
same. The delivery of materials is done by this number. After making the product
sometime the party make it themselves or otherwise the company made it they store
the finished goods in the showroom or in the store up to making the delivery. The
packing of product is changed according to the materials; it is for preventing the
damages in hand potations.



Managing Director

Purchase Manager

Assistant Manager



Figure : 3
Production is the most important activity of this organization. Production
department starts its production in accordance with the work order. This is one of the
main departments in FIT, In addition to production activities they also monitors the
problem arising mechanical, electrical and instrumentation activities. The various
factors which prevent the department from achieving the budgeted production are
failure of power supply, unexpected break down of machines etc.,, to overcome these,
the company provided with Generator and well equipped machine shop with efficient
electrical and mechanical engineers.
Production department starts its production after receiving the Acceptance
Order (A.O). Acceptance Order is received through the effect of Planning and
Marketing Department. So the deduction Department has a direct link with the
Planning and Marketing. Production Manager is; the Head of this department. This
Production Manager is the one who report to the Managing Director. Production
Manager is assisted by one Assistant Manager, and the Assistant Manager is assisted
by junior executive. There are 3 Super Visors come under the Junior Executive to
control the Band saw, processing and carpenting. This Production unit works from
8.00 A.M to 5.00 P.M.
The production process includes various sub-processes. Machine shop is the
sub-process of production process which follows a maintenance mechanism. It has
necessary tools and equipment's that it replaces worn out parts and lubricate the
machinery on time and regularly 1 checks the working of the machinery.

The target of modern industrial organizations is to produce what has been

planned at the budget cost, and maintenance has the primary aim of enabling plant and
Machinery to carry out the production. Therefore every manufacturing organization
needs maintenance because Machines break down; parts where out over a period of
time of use. It must also solve the problem of preventing failure as process of loss of
The main objective of maintenance is to get the equipment back into operation
as quickly as possible without interruption of production, periodic inspection of plant
and equipment to prevent break downs before they occur. This maximizes the
availability of machinery and equipment for production and preserves the values of the
plant by minimizing wear and tear.
To ensure uninterrupted production.
To provide necessary allocation of duties to the workers.
Daily production and reporting.
Over time calculation.
Maintain report of production loss due to various reasons.
The existence of the unit is in public interest that FIT is the only unit where
the Kerala consumers can cent percent rely on quality wood products. Quality is
buzzword of the company. The company is not ready to sacrifice quality for any
monetary gains. Hence, the company possesses different equipment's and
mechanism to ensure quality at .different stages of production it takes necessary
steps to ensure that maximum and minimum cost is incurred.


Raw materials used by the Department can be divided into Direct and
Indirect Materials. Direct Materials include Teak wood, Rose wood, Sal, Anjily,
Pingoda etc., and Indirect Material includes plywood, Mica, Polish, Inches and
Screw etc. The purchase Department controls the purchase and storage of raw
The company gave much more importance to the Health & Safety Measures
it obey the rules regarding safety insisted in the factories Act, 1948. The
overhauling of the machinery and power supply system is done on the regular basis.
Awareness programs and training class for plant workers and supervisors are
conducted. The unit is provided with Firefighting equipment's, Alarming system,
first aid facilities etc. Besides these, the production unit is properly ventilated and
assures proper air circulation. Thus the company provides good working condition
which improves the quality of work which ultimately results in the production of
high quality goods.
The production department is the major function of the each and every
organization. And it is also same in the case of Forest Industries (Travancore) Limited.
In production department the function is start through exacting. That is receiving
orders from the public and check whether it is accepted or not. Then accept the order.
This order is passed to the planning section. They are planning about the
product according to the order. It is making after considering the customers interest
and the money and estimate of the customers. Then passing this information to the
customers if they agreed it forest Industries (Travancore) Limited received agreement
from the customers.
1. Band saw:-


This is the first step in production is huge machine for cutting the
wood in to different pieces. The machine is in rounded form. The band sow making
the wood into different pieces ie., in thin and straightly.

2. Re Saw:In the second stage the Re Saw machine is used. The usage of band saw and
resaw are same. Re saw is also used in cutting the wood. It cut the wood into smaller
pieces. These are functions of 1st section. Then the next section is the browsing
section. There are different processes in this section. It includes:
Drilling Plainer
Thickness plainer
Tennon machine

Plainer is a machine which cuts the woods in correct rectangular shape.
It smoothen the two sides of the wood. The hard things are remaining in this process.
And that waste is given to the public in cheap rate, ie., one big bag have only 6Rs.
They collect it directly from the plant itself.
Thickness Plainer
It is the same version of plainer. Plainer, correctly cut it in to correct
rectangular shape. In this it will correct the width and thickness of the wood.


Chisal Mortizer
This machine is used to make rectangle hole in the wood which
complete the above process.
Tennon is another machine which is used to make the correct partner
of the chisel mortiser marked holes.
It is one of the actual forms in the forest industries Travancore. It
helps to make art work in the wood. It is only done by skilled and experienced
Drilling Machine
This is used to make round holes in the woods.
After all these next is the assembling section. Here the product will come
into its final position. After this the next step is moving all products into polishing
section. Mainly they use melamine, lacktor, wax polishing etc., for polishing the
products. After the making of the product it will be delivered to the customer or it is
moved to the showroom.
FIT also doing upholstery work on the 1 st floor. They are also supervised by
the production department. The materials that are wanted in the production is
provided in the store with the consent of store manager.
Then the final appearance is made. When one order is completed before the
due date , it will be kept in the stores. When the customer comes to take that order it
will be provided only after a final touch up.Quality of the product in each
department is correctly checked by the supervisor. They are totally 24 supervisory
staffs in FIT to checkout the manpower.


Each and every worker in the plant is safely secured. The machinery's are
properly covered. And each and every activity of workers in the plant is checked by
the supervisors.



Managing Director

Production Manager

Assistant Manager



Figure : 4



Forest Industries Travancore Limited is having an efficient marketing system

inside the state. The products manufactured by the production department are marketed
through this network. The products are best quality products compared to private firms.
The success and failure of every organization or profit and loss are depends upon the
marketing strategy. Marketing is the prime mover of all functions of management. The
demand for bench, desk, table and chairs are increasing when compared to other
furniture products.
The marketing function will start after the production process completion. FIT
collect the raw materials from the Forest and take it in to the manufacturing process.
The cost of the finished goods includes 33% of tax. The FIT produces their products
according to the order received. And they market 99% products to government
departments like (info park etc) and after 1% to the public.
Channels of distribution for a product is the route taken by the title of good as
they move from producers to the ultimate consumers. Forest industries (Travancore)
limited follow only force channels to distribute their products services.
1. Company - Consumer
In this channel sells products directly to consumer 60% of forest industries
Travancore Ltd., products are sold through this channel. FIT have 4 field staff they
work for forest industries.
2. Company Contract - Government Institution
In this channel, the company sells their products according to the order to govt,
institutions the company can earn more profit from these channels.
Marketing is helpful in company planning and taking various decisions regarding
business. It helps in increasing the business profits b reducing the selling cost on the
one hand and by increasing demand of the product through advertising and sales
promotion activities on the other marketing is responsible for a company revenue


FIT participated in exhibitions and make advertisement for sales promotion.

The product range and its pricing is mainly depend on the government rate. The
government gives an order to the FIT and they follow that order for fixation of price.
Price fixation of forest industries (Travancore) Ltd., is attached with this
information and also a copy of government order too.
The main competitors of FIT are CADCO and SIDCO etc., mainly FIT has 2
consumers State government and private members. Up to 99% FIT have government
department and have also limited private members.
1. Advertisement based sales:The forest industries Travancore Ltd., imposes product wise advertisement
through press media to get maximum sale of product. The company makes an
assessment of about 2% on sales as advertisement expenses.
2. Discount Sales:
The company offers discount sales to consumers for improving this profit. In
the festival period like Onam, Christmas and Vishu the company offer their discount
sales. It provides more satisfaction to consumer because they earn good quality
products at discount rate.


Basis for the Computation of Selling Price at Fit

Raw material cost for size taken for computing is given
o Teak wood- Rs. 122678 per M3
o Anjili wood

- Rs.46473 per M3

Hardwood- Rs.44990 Per m3

Direct labor rate:
Carpentry- Rs.47.22 per Man Hour
o Finishing - Rs.49.68 per Man Hour.



Managing Director

Sales & Marketing Manager

Assistant Managers



Figure: 5



It is one of the important function or department of management. Actually the
main asset of one organization is their manpower. We can achieve our organizational
goal more easily by proper control and coordination of each department. The
management also properly understood one thing that unity is the strength of each and
every activity. In my view forest industries Travancore have more importance to
coordinating the each department in their limited facility.
The forest industries Travancore have 2 times to start their work. The plantation
works are starts 8.00 am and ends in 5.00 pm. The office time is 9.30 - 5.00 pm the
shiftis not uncontained in FIT. If there were any over works they will get OT. For every
member there were 14 casual leaves and 30 earn leaves. If they event to take any leave
they will submit a leave application form to the supervisor at one day before. They will
keep an attendance register in the plant. The worker will sign it when they came and
also signed after noon intervals. If they are coming late, they will be given only half
day attendance.
If one person wants to take a casual or privilege leave they want to write the
duration of leave and they also want to specify the reason for that leave. This leave
application will be signed firstly by the applicant. Then it passes to the section head
and then to the personal department. After that it will passes to the head of the
And for office staff an Electronic punching is maintained for making
attendance. Each staff has their own card. When they come and go they will put the
card into the matching and punch that time, the time will recorded in that card. So the
manager can identify when the staff had come and gone. Forest industries Travancore
provide holidays for the workers and staff according to the company's act. The act will


recorded some holidays. That days and the national holidays the FIT will not



Workers (all non-supervisory employees in


factory office & Field)


Supervisory staff in factory office and field





Senior executives (Head of department & above) 4

Total man process


Table 1
Forest Industries (Travancore) Limited is a government institution. The
recruitment & selection procedure is done by the government itself by their own
techniques, i.e., through PSC test. PSC conduct the test and from that, persons scoring
highest marks in that will be called to the company and then make an interview.
Through this interview they will select a person and appoint him.
This is the selection procedure of the forest industries. And they provide on the
job training. This is the most effective method of training the Workers. This method is
practical- oriented and it facilitates learning by doing. The worker is imported training
at the work place by the supervisor, i.e. they will not provide any proper training to the
workers. If they are selected they are appointed in to the post as their probation period
i.e., every workman recruited to the service of the company on a regular basis shall,

unless or otherwise specifically mentioned in the appointment order to be on probation

for a period, which shall be one year initially. Subject to extension for such further
period not exceeding 6 months as may be found necessary by the management from
time to time and will continue as probation unless confirmed in writing. If the
performance or conduct of the probationer is not satisfactory, the management reserves
the right to terminate the service of such probationer and such termination shall not be
deemed to be in any manner as termination by way of disciplinary actions, If a
permanent workman is promoted to another post otherwise than for a temporary period
be shall be deemed to be on probation in the new post for a period of 6 months
initially, subject to extension for a further period not exceeding 6 months and such
person may at any time during or immediately on completion of the probationary
period in the new post or such further period or period of extension as may be ordered,
be reverted to his old permanent post and for doing so it shall not be necessary to give
any notice assigning any revision and such reversion will not constitute a reversion as
a disciplinary measure.
The forest industries also appoint the person as a temporary appointments or
daily wage. Appointment of workman on a temporary basis shall stand automatically
terminated at the end of the period for which one is appointed till such time as an event
may occur on happening of such an event. Temporary service will not confer on the
workman any right for continued service or for appointment in the same or in any
other post in the company. They get the cash their service on daily wage basis.
According to Edward Flippo performance appraisal is the systematic periodic
and an impartial rating of an employee's excellence in work matters pertaining to his
present job and his potentially for a better job".
The performance appraisal which is doing is forest industries Travancore is
giving promotion, resignation and salary incrimination of the employees.
A trade union means any combination, whether temporary or permanent;
formed primarily to regulate the relationship between workmen and employers and
employers and for imposing any restrictive conditions o the conduct of any trade or
business further, any federation of 2 or more trade unions shall also be a trade union

In FIT trade unions it is effectively functioned to avoid any disputes or any

problems entering in the work environment.
All complaints of individual nature such as man payment of wages, grand of
leave, OT work assignment working conditions, transfer and other complaints of
similar nature arising in course of employment comes under governance.
An employee can present his grievances to his immediate supervisor. If he fails
to take decisions within a reasonable time refer it to his immediate supervisor or to the
departmental heads in written form. It is finally dealt by personal manager and a final
verdict is pronounced. In any case if the employer is not satisfied with the decision he
can approach labor officer to rectify the errors if any.
The main functions of the personnel and administration department include the
Interview and selection
Training and development
Performance appraisal
Wage and salary
Welfare measures
Grievances handling
Industrial relations



In simple terms recruitment is the process of searching for and obtaining

applicants for jobs, from among when the right candidates can be selected. This
process is done after human resource planning helps to determine the number and type
of people the organization needs. Job analysis and job design specify the duties and
responsibilities and the qualification expected from prospective job holder.
Hiring process involves two activities- Recruitment and Selection.
Recruitment process begins when new recruits are sought and ends when the
applications submitted undergo screening process which eliminates the persons who
are not qualified. The result is a pool of applicants from which right candidates are
Recruitment of managerial personnel is from die list provided by Provisional
and Executive Employment Exchange or through the advertisement in News Papers.
Office staffs including security staffs are recruited through KPSC or through
Employment Exchange or through News Papers. They can be directly present for an
interview and selection.
After recruitment, the candidates are called for an interview. For the post of
office staff and managerial positions a written test is conducted. For position in
managerial post various other tests by the experts in the field are also conducted. The
short listed candidates are interviewed.
The interview committee consists of Chairman, Managing Director,
Government nominee from Industry secretary, Personnel and Administration Manager
etc. For the post of workmen, candidates through Employment Exchange are present
for a test, interview and selection. During the personal interview, experience and skills
of the candidates are assessed.
After the selection process the selected supervisory and managerial position
holders has a probationary period of one year. During this period, monthly evaluation
is done on the basis of professional knowledge, managerial or supervisory ability,
honesty and integrity, attendance, behavior, temper, getting along with colleagues etc.

If the candidates scores unsatisfactory grade in consecutive months, he will be

eliminated before the termination of the probationary period
Personnel and Administration Department is responsible for giving training to
those for whom the training needs are identified. The training needs are identified by
the respective HOD's of the departments and are forwarded to P&A department. There
are no training programmes for managerial personals. One year training programmes
are conducted for the worker before placement. There are two types of training
programmes given In-house Training programmes and External Training programmes.
Managerial staff, supervisors and selected workers are sending for training
programmes outside as per requirement. Selected workers are also sending for training
to improve their skill and knowledge. Training and development programmes can
mould a person to suit the requirements of the organization. The company also
conducts on-the job training programmes.
The company follows one type of payment system- Piece Rate System. The
permanent employees other than office staff and managerial personnel are come under
piece rate system Majority of workers come under this system, in which payment is
made according to the quantity produced.
Salary is paid along with a pay slip which contains the details of payment. A
copy of the pay slip is signed by each employee when he receives the salary. It will be
filed in the department. There are regular incentives provided to encourage the piece
rate carpenters. Other worker will get incentives on the basis of excess production.
Quarterly evaluation of performance is done for the employee. The criteria for
the evaluation of employees are:


Achieving target
Achieving quality
Behaviour at work situation like co-operation, work habits, contribution to the
Work habits include late report for duty, leaving the work spot without
permission indulging in gossiping, disturbing others etc. Contribution to the
organization include giving creative ideas in working situation, accepting any
responsibility with enthusiasm, behaving well with superior, subordinates and
colleagues, handling multiple crafts etc.
Grades are given like poor, satisfactory, good, very good and excellent. Poor
performance will negatively affect the appraisal and excellent performance appraisal
not only considers the past performance but also the potential of the future


Benefits and welfare measures are something which an employee always looks
for. A lot of welfare and benefit measure are offered by the organization to its
employees. After all, an employee spends major part of a day and a portion of energy
for the company. The duties of the Administrative section includes administration of
plant and premises, furniture, canteen and all other things required for smooth
functioning of the plant.
The welfare measures are:
Provide uniform


Canteen: The organization runs a subsidized canteen for its employees. Provide
food on subsidy rate to all employees. E.g.- Tea 15ps, Lunch 90ps
Annual bonus: The organization pay annual bonus to its employees based on
the organizations performance in the previous financial year.
Drinking water: Water coolers are installed in the company for the benefit of
the employees.
First aid appliances: First aid materials are provided by the organization to meet
the emergency.
Gratuity: Gratuity to employees covered under the Group Gratuity Cash
Accumulation Scheme of LIC.
Provident Fund: The eligible employees receive benefit from a provident fund,
which is a defined contribution plan. Both the employee and the company
make monthly contribution to this provident fund plan equal to a specified
percentage of the covered employee's salary.
Lighting: The office rooms and plant of the company arc properly ventilated
andlighted. Lack of natural light in the plant is compensated by providing
artificial lighting for the protection and safety of employees.
Resting Facilities: To take rest, employees are provided with chairs. They are
provided with toilets, bath rooms, washing facilities and drinking water.
Maternity benefits:
Leave- There is 14 days casual leave and 30 days privileged leave for
permanent employees in a year. Maternity leave of 12 weeks is granted to the
female employees.


A smooth and effective grievance handling mechanism exists in the company.

The management and the workers maintain a close relationship with each other so that
the grievances are easily solved if any. There is a proper channel of communication.
FIT endorses good industrial relations discussing with the union members a
matter concerning the employees of the organization. There are 3 unions in FIT. They
FIT Employees Union
FIT Staffs and Workers Organization
FIT Staff and Workers Association
Whenever special situation arises Trade union meeting are arranged. It is very
interesting to know that not even a single day is affected by strike or lockout since its
beginning 1946 due to good industrial relation. If any problem arises the company is
planned to solve through bilateral discussions. Company ensures discipline by strictly
following the procedures as mentioned in the standing orders. Disciplinary actions are
taken when an employee or group of employees do something which is against the
procedures mentioned in standing orders. The disciplinary authority has the right to
give punishments in accordance with the proceedings.
Each working area is provided with fans. Each worker is provided with tools
and working table. Office staff and factory workers have different working time
schedule. Factory workers time schedule is 8 am to 5 pm. Office staffs working time is
9:30 am to 5 pm. Lunch time is same for both workers, 12 pm to 1 pm.
Workers union is active in FIT. There are four major unions existing in the
company, they are


There are permanent workers and daily wages workers in the plant The
Company is following piece rate wage system. Each worker should work at least 8
hours of work. Work for additional hours they will get incentives. That is for 1 hour
they get 6 Rs. Maximum incentives in a month is 775. If anyone who does not
satisfied with this will be charged penalty. That is 75 Rs in a month.
They have a proper waste management system. Waste material is sold to coir fed
and also to local people.




Managing Director

Personnel &
Administration Manager


Figure : 6


To have a very clear understanding of the profitability of a business the
statements will have to be analyzed and interpreted. Financial analysis is the process
of identifying the strength and weakness of the company with the help of accounting
practices information provided by the Profit and Loss A/c and Balance sheet. There
will provide the management considerable insight in to the levels areas of strength and
The Finance Department deals with the procurement and management of
funds. This department controls the overall financial transaction of the company. It
controls the receipts and payments of each and every activity for all the divisions. In
FIT, finance department plays a major role because in public sector only very few
companies are earning profit. FIT is single unit organization. The company is in profit
for several years. The surplus money is invested in the treasury and gets a fair rate of
interest from the treasury.
The Finance Department keeps a record of everything concerning any expense
or income. They have no interest on working capital and also no secured or unsecured
loans. In most of the private sectors achievement is always less than budget, but in the
case of FIT achievement is always greater than the budget. There is no stability in the
profit of FIT. The areas under the purview of the finance department include salary
administration, bill processing, statutory payments like taxes, central excise etc,
financial administration, costing, internal audits and balance sheet preparation,
budgeting, payments and receipts, bank negotiations etc.



1. Management Of Receipts
Payment from dealers is received only through marketing department. They
issue proper receipts customer wise/dealer wise accounting is adopted. There will be a
debit outstanding and it must be informed to marketing development once in a month.
Insurance, freight outward, bank negotiation etc are accounted and maintained to
arrive at the cost of sales.
2. Budget And Budgetary Control
The budgets are presented before the management for approval. The budget is
reviewed half yearly. If some changes are occurred they are submitted to
management/board through a revised budget for approval.
3. Auditing
Internal audit is mainly based on corporate functioning. The main function of
this department is to ensure that policy decisions of the management is strictly
followed by the functional departments and is verified by the internal audit.
4 .Statutory Transactions
Sales tax/income tax/tds certificates/c-forrn/form-18 etc are issued. They are
properly accounted and properly accounted and proper time settlements are made.


Salaries and other payments, remittances and recovery etc in the case of employees are
done in a time.
These are the major functions of finance department in FIT
The method employed to examine the vertical as well as horizontal
relationships of different variables with a view to study the profitability and financial
position of the business firm are called techniques of financial analysis. These
techniques of financial analysis include Ratio analysis and trend analysis.


This ratio is also known as stock turnover ratio. It establishes the relationship
between the costs of goods sold and averages inventory during a given period. This
ratio reveals the number of times finished stock is turnover during accounting period.
Inventory Turnover Ratio= Cost of goods sold-Average Inventory
Table Showing Inventory Turnover Ratio

Cost of goods sold



















2,36,97,808 89


Table 2


Average Inventory


Profitability ratios are utmost importance for a concern. These ratios are
calculated to show the end results of business activities. This ratio indicates the
profitability position if the concern. The profitability ratios measure the profitability or
the operational rifled. The financial results of business operation.


This ratio plays a significant role in management area. It indicates the firm's
ability to utilize the outside source of funds. It is the important tool in shaping the
pricing policy of the firm.
Gross Profit Ratio = (Gross Profit/ Net sales) 100
The Table Showing Gross Profit Ratio


Gross Profit (Rs)

Net Sales (Rs)

Ratio (%)







6,12,41,457.56 i















Table 3


Net profit ratios are a very useful tool to the proprietors and prospective
investor's because. It reviews the overall profitability of the concern. This ratio of net
profit after taxes to net sales


Net Profit Ratio * (Net Profit/ Net sales) 100

Table Showing Net Profit Ratio


Net Profit (Rs)

Net sales (Rs)






















Table 4



Managing Director

Finance & Accounts


Assistant Manager

Assistant Accountant




Figure : 7

A scan of internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm can be usually classified as
strengths or weakness or those external to the firm can be classified as opportunities or
threats. Such an analysis of the strategic environment is referred to as SWOT analysis.
Continued market leadership in the dominant industry segment.
Global presence
Presents qualified products inn furniture segment
Dynamic, progressive and stable management
Responsive to change with the changes in market condition and product
Product innovation and technological superiority.


Natural and qualified woods are used i.e. Nilamboor Teak etc.
Global quality standards and international process and system certification
Strong brand in the price sensitive market
The work orders are not consistent
Household products does not have good market
High price for the products
The employee perks and facilities are not up to the mark.
Now a day's people change their teats and preference according to the changes in the
climate, they use wooden product in the place of plastics and other items. The wooden
industry pay an important role in the changing condition
Leadership position in the commercial furniture segment will enable the
company to leverage new and related business opportunities
Growing consumers preference in wooden products may lead to growing
Access to global sources for raw material at competitive price due to economies
of scale.
Fluctuations in availability of raw materials
Large number of competitors
Government policies and intervention


Emergence of quality plastic product varieties.

Conditions of work.
It is found that more than half of the employees are satisfied with the conditions
of work. Few are unsatisfied with the same.
Extend of participation possible.
It is found that more than half of the employees are neutral with the statement,
only very few are satisfied, and the rest are unsatisfied with the participation possible.

Recognition in work.
It is seen that half of the employees have a neutral opinion, only few of them
are satisfied with the same and the rest are dissatisfied.

Satisfaction with the job.

It is evident that most of the employees are satisfied with the job and only few
remain neutral.
Loading of work.
Most of the employees are satisfied with loading of work, only few remain
neutral and rest are dissatisfied with the same.
Supportive supervisors.
Majority of the employees are satisfied with the supportive supervisors, few
remained neutral and rest are classified with the statement.
Management Support.


It is clear that more than three - fourth of the employees are satisfied with the
management support, but few are disagreed with the same.
Opportunities for development.
It is found that most of the employees are disagreed with the opportunities for
development, but a few are neutral.
Adequate and fair compensation.
Hardly few are satisfied with the adequate and fair compensation. More than
three- fourth of the employees are dissatisfied with the statement.
Reasonable incentives and other benefits.
Hardly few are satisfied with the incentives and other benefits given to them.
But there is a mixed opinion regarding the same.
Freedom and autonomy in the job.
It has been interpreted that most of the employees are satisfied with the
and autonomy in the job. Less than half of the employee's only remain neutral.
Training opportunities available.
More than half of the employees are disagreed with the opportunities available.
Only a very few are happy with the same.
It was found that there were many problems and weaknesses in many of the
benefits according to the respondents. The following suggestions can be done to
overcome the present situations:
The employees should have faith in the management and their activities.
The employees should be educated to make proper use of benefits so
that they are truly benefited from it.


All the employee benefit schemes must be properly implemented on a

continuous basis.
The management should have HR initiatives to show that they are
concerned about the employees.
The timely revision and updating of employees benefit according to the
changing situation will enhance the employee satisfaction.
Employees are to be given awareness about grievance redressal forums
to solve their problems, if any.
More employee motivation techniques should be applied.
A periodic raise of the salary should be given to the employees.
More training programs should be introduced.

From the findings we can conclude that the firm has provided all the basic
necessities to its employees, which are normally provided. It has been able to motivate
its employees to a greater extent. Employees being the backbone of the company, it is
very essential to motivate them so that they can make the best out of their skills and
The firm has to look into the maters like salary benefits, bonus, other
motivational factors, participation in management, proper delegation of work load,
information technology training and other similar benefits. The firm must also pay
attention to the suggestion and recommendation of employees.