Rubco organizational study

An organizational study report of Rubco Huat Woods Pvt Ltd.

INTRODUCTION

Kerala state Rubber Co-operative Ltd. (Rubco) has, in a short span, redefined
the way the co-operative sector functions and set the pace for the co-operative
movement in Kerala today. Rubco was set up in the year 1997 with the objective of
effectively utilizing the abundant rubber resources of kerala. Today, from a single unit
company, Rubco has grown into a Rs.280 crore conglomerate with well-diversified
operations and a market presence extending beyond the boundaries of Kerala. Rubco
manufactures and markets a variety of products from footwear to furniture,
from mattresses to virgin coconut oil. Rubco has also entered into technological
alliances with world leaders in the respective fields, sourcing from them the latest in
technology. Substantial investments in modern manufacturing facilities, coupled with
well – organized marketing activities, have seen Rubco’s products earn a reputation for
quality, as also significant market shares. Led by a professional management team and
ably supported by a committed workforce, Rubco is now poised to enter a high growth
phase, with several new initiatives that will take the Group on a path of expansion and
diversification.
Rubco is started for promote the rubber plantation in kerala. Rubber plantation
in India is large. Our country is the one of the largest national rubber producers in the
world, now it occupies the fourth most position in the production of natural rubber.
Thailand, Indonesia and Malaysia occupy the first, second and third position
respectively, accounting for more than 9% of the global output. India has rank 5th in
terms of acre age, 4th in terms of production and first in terms of productivity in the
world. The rubber plantation sector in the country is dominated by small holdings,
almost 10 lakhs in number, 88% of the area and production come from small holdings.
Rubber plantation provides raw material for the product manufacturing industry.
Rubber cultivation in India has been traditional confined to the hinder lands of
south west cost mainly the kerala state and Kanyakumari district of Tamilnadu. The
nontraditional regions cultivating runner includes costal Karnataka, Goa, and Konkan
region of Maharashtra, costal Andrapradesh, Orissa , the North eastern states and
Andaman niccobar islands.

KRUPANIDHI DEGREE COLLEGE Page 1


The rubber plantation employees about 4 lakh persons and a good number of
them are women. Being tree crops it has tremendous potential in eco-restoration.
Rubber plantations also provide a variety if auxiliary product like honey, seed oil,
rubber wood and scope for rearing honey bees.
Commercial cultivation of rubber in India was started in 1902. The state of
kerala adjoins Kanyakumari district of Tamilnadu and traditional and major rubber
growing area of the country. It is also grows in Tripura, Assam, Meghalaya, Mizoram,
Manipura and Goa over 5.71 lakhs hector of area spread; over 15 states and one of the
union territory of the country is under rubber plantation. The rubber plantation sector
in India is dominated by small holdings almost 10 lakh in number, covering 88% of
total area; about 71 lakh of people derive their employment from the plantation sector
directly or indirectly.
The main purpose of rubber plantation is the production of latex which is the
main raw material for all rubber product manufacturing industries. In India, 72.2% f
the product is processed as ribbed smoked sheet (RSS). Block rubber, concentrated
latex, crepe rubber and
other account for 9.8%, 10.5% and 7.77% respectively. A rubber tree with a useful
economic life span of 23-30 years will yield high production latex.
In this background, the Kerala state rubber co- operative Ltd., otherwise known
as rubco, purpose to launch a comprehensive scheme to interact with the farmer
directly with the processing and other support facilities so that small and marginal
farmers can avoid the cumbersome process of sheet making in their small holding.
Since small holdings are only between 0.5 to 2 Ha, generally, and do not have
infrastructure facilities, it is very difficult for them to make quality sheets. In the
international market the quality of the sheet are very important. For this purpose rubco
also started a marketing plan with the farmers for making the sheets with international
quality.



OBJECTIVE OF THE STUDY

To study the organization as a system and it’s various functional areas.
To have the practical knowledge of the application of management theories.
To have real life knowledge of an organization through various departments.
To understand the strategies adopt to confront the challenges faced by the company.
To have a clear picture about the company.

LIMITATIONS OF THE STUDY
Personal bias and prejudice of the respondents could have affected the result of the
study
This study is academic effort so is limited by time cost and coverage
This study is subjected to the common limitation of secondary data.

SOURCES OF DATA COLLECTION

PRIMARY DATA COLLECTION

It refers to the data that was collected first hand directly from the sources.
By interviewing managers.
Discussion with workers.
Interviewing staffs.

SECONDARY DATA COLLECTION

The data previously collected by others for some other purpose. It includes,
Company booklets.
Organizational websites
Annual reports and journals.



INDUSTRY PROFILE
RUBBER WOOD INDUSTRY
RUBBER PLANTATION SECTOR IN INDIA
The rubber industry is one of the key sectors of the Indian economy. Commercial cultivation
of rubber in India started in 1902.India is one of the largest rubber producers in the world
and occupies the 4th position in the production of natural rubber. Thailand, Indonesia and
Malaysia occupy the 1st, 2nd and 3rd positions respectively, accounting for more than 9% of
the global output. India ranks 5th in terms of acreage, 4th in terms of production and 1st I
terms of productivity. The rubber plantation sector in our country is dominated by small
holdings(less than 0.5 hectares) almost 10 lakh in number, covering 88%of the total area; and
about 71 lakh of people derive their employment from rubber plantation sector either directly
or indirectly.
Rubber cultivation in India has been traditionally confined to hinder lands of south west
coast; mainly the state of Kerala and Kanyakumari district of Tamilnadu. The non-traditional
regions cultivating rubber include coastal Karnataka, Goa, Konkan region of Maharashtra,
coastal Andhra Pradesh, Orissa, Tripura, Assam, Meghalaya, Mizoram, Manipur and
Andaman Nicobar islands. Kerala contributes 90% of India’s total production of natural
rubber; Also Kerala and Tamil Nadu together occupy 86% of the growing area of natural
rubber.

IMPORTANT CHARACTERISTICS OF THE INDIAN RUBBER
INDUSTRY
The following are the special characteristics of the rubber industry in the country, which
make India a little different from many of the other natural rubber producing countries;
India is a major producer and consumer of natural rubber

The rubber products manufacturing industry in India had been mostly inward
oriented, catering to the domestic market

In recent year India has entered the global market exporting both raw natural rubber
as well as rubber products



With its large population base India is emerging as a large market for rubber products
and with the opening up of the economy, import of rubber products has also been
increasing in recent years

The rubber product mix in India is based mostly on the dry forms of rubber dictated
by the requirement of the domestic market

ROLE OF INDUSTRY IN THE ECONOMY
Due to various factors like extensive plantations good availability of raw materials
availability of economical and technically skilled man power and a vast domestic market,
India is all set to make a mark in the global rubber industry. India is ideally poised to
supplement and compliment overseas manufacturers through joint collaborations and
technical exchange to contribute substantially to the world rubber trade.
The main purpose of rubber plantations is the production of latex, which is major raw
material for all the rubber products manufacturing industries. In India, 72.2% of the
production is processed as ribbed smoked sheets (RSS).block rubber, concentrated latex,
crepe rubber and others constitute 9.8%, 10.5%and 7.77% respectively. a rubber tree with a
useful economic life span of 23 to 30 years will yield high amount of latex . Also being a
tree crop it has tremendous potentials for eco restoration. Rubber plantation also provides a
variety of auxiliary products like honey seed oil rubber wood and scope for rearing honey
bees
Established in 1921, the Indian rubber goods manufactured industry has grown to the 4th
largest producers and consumers of natural rubber. It is also the 4th largest consumer of
natural rubber and synthetic rubber. Put together, India has about 5000 rubber goods
manufacturing units including large and small scale unit’s .the range of rubber wood product
manufactured in India caters to all most every sectors including the common people. it also
helps a social cause through condoms. In tandem with the manufacturing sectors growth, the
industry is posing to deliver high growth rates in the domestic and export sectors.
Development of rubber wood industry in our base particularly in the automobile industry and
the availability of competitive labor the country offers great opportunities for rubber products
manufactures with country will help to generate employment strengthen national economy
make rubber cultivation sustainable and preserve the environment. considering the large



population and the large manufacturing further investments in r&d and infrastructure ,the
country is poised to become a leader in rubber product manufacture in the years a head



COMPANY PROFILE

OWNERSHIP PATTERN

Govt of Kerala (GOK) along with Indian rubber board and some district and
primary co-operative banks in kerala all the promoters of RUBCO; Govt of kerala
holds the majority of the shares. The top ten share holders are GOK, Rubber board,
Kottayam district co-operative bank, Palakkad district co-operative bank, Eranakulam
district co-operative bank, Thrissur district co-operative bank, Thiruvananthapuram
district co-operative bank, Kollam district co-operative bank.

HISTORY AND GROWTH

Kerala state rubber co-operative limited, popularly known as RUBCO is a Rs.
280 crore group with a strong presence in the rubber based industrial segment. Rubco
was incepted with prime objective of effectively utilizing the abundant rubber resoures
of Kerala. In literally means the kerala state rubber co-operative limited will become
the back bone of the rubber cultivator.
In there slogan it’s self they mentioned that
“RUBCO means RUBBER and RUBBER means RUBCO”
In short span rubco has successfully introduced a wide range of fast moving
rubber based product. Today rubco group have interest in rubber foot wear, casual
shoes, cycle tyre and tubes, two and three wheeler tyre, rubberized coir mattress,
processed rubber wood furniture etc.
Rubco was set up in the year 1997, RUBCO has entered in to technical alliance
with world leader in the respective field, sourcing from them state-of art technology.
substantial investment in modern manufacturing facilities, coupled with well organized
marketing activities ,has seen RUBCO’s products earn a reputation for quality and
significant market shares. RUBCO is the largest exporter of natural rubber in the
country today. Even in the domestic market, rubco is the major supplier of natural
rubber to all leading tyre companies in India RUBCO is also Govt intervention agency
towards market stabilization and has been serving the farming community.



Directly and indirectly to get responsible price, arresting drastic fall in price
during peak production period, rubco policy in natural rubber has been a harmonious
blend of social obligation and commercial practicability led by a professional
management team and ably supported by a committed work force. RUBCO is now
poised enter a high growth phase, with new several initiatives that will take the group
on a path of expansion and diversification. Rubber holds immense potential for wide
variety of commercial use which is yet to be fully tapped into. By realizing this
potential, Rubco hopes to create opportunities and bring industrial progress to a land
that accounts for 92% of country’s natural rubber production. In the process rubco also
aims to achieve its vision of turning in to multi-faced, globally competitive
organization, excelling in its every sphere of activity.
RHW Ltd is located at chonadam near telicherry, kannur district kerala. RHW
was inaugurating in 6 may 2000 and started its commercial production in January
2001.

LEGAL FRAME WORK OF THE ORGANIZATION

RUBCO is governed by the byelaw which provides that RUBCO’s area of
operation will cover the entire state of Kerala, however there is no restriction on the
area of operation as far as the sales and marketing of the products dealt in by RUBCO
is concerned.
As per by law, the main social objects inter alia include to further rubber
cultivation in the state, to accelerate the industrial growth and strengthen the co operate
movement.
RUBCO is governed by the byelaw which provides that RUBCO’s area of operation
will cover the entire state of kerala, however there is no restriction on the area of
operation as far as the sales and marketing of the products dealt in by RUBCO is
concerned.
As per by law, the main social objects inter alia include to further rubber cultivation in
the state, to accelerate the industrial growth and strengthen the co operate movement.



CAPITAL
Authorized share capital of RUBCO as per the byelaw is Rs. 3000 lacks made up
of

A class share of Rs1000
2500 each Rs 2500 lakh

B class share of Rs 25000
5600 each 1400 lakh

C class share of Rs 100000
26000 each 26000 lakh

D class share of Rs 10
1000000 100 lakh
each

Total 3000 lakh

BOARD OF DIRECTORS

The administration and management of the company rests in the hands of board of
directors consisting of 15 members as followers.
1. nine directors elected by A class share holders among themselves
2. two directors elected by B class share holders
3. three ex-office directors by registrar of co-operative societies, Kerala

The term of office directors shall be five years from the date of assumption of the
office. The co-operative cannot receipt deposit or loans in excess of 50 times the paid a
share capital plus reserve fund of co-operative societies. This limit is not applicable to
funds received from the central and state Govt. or other agencies like NCDC, Rubber
Board etc.



PRODUCT PROFILE

PRODUCTS

The rub wood furniture range introduced by RUBCO HAUT comprises of
elegantly designed, modern furniture fashioned out of eco friendly rubber wood.
Manufactured in technical and financial collaboration with M/s long haut group
Berhand of Malaysia.
The following are the various ranges of products offered by the RUBCO HAUT

RUBCO TIMBER PANNEL

RUBCO rubber wood pre-finished panel open up unlimited possibilities in
design and processing on par with the highest standards and unequal in elegant.
RUBCO timber panels are produced by the sophisticated process of finger joining and
edge gluing, using resigns of polymers, which are either white or translucent excellent
finish or durability is guaranteed. They also conform to international standards. These
solid timber panels of RUBCO are easy to saw, machine, drill, bore or stain sanded to
240 grit, they offer smooth finish and excellent holding capacity, making it the ideal
user-friendly choice of furniture manufactures and carpenters. This proven concepts
which is very popular among builders and architects in western countries, offer the
perfect solutions to the problems routinely encountered in handling various cross
sections of timber scantlings.
RUBCO timber panels are eco friendly ensure lower wastage of material and
cut down on labor, time and over all cost.
Rubco timber panel come in size from 15mm thickness upward with maximum cross
section size of 5200mm x 5200mm rubco timber panels can be applied for the
following uses.
Doors and window frames
Office furniture and portions
Modular tables and peripherals for computers
Designer wardrobes
Kitchen cabinet



RUBCO HUT WOOD FURNITURES

The colonial furniture collection from Rubco’s are and ideal way to add
splendor and comfort homes. Than RUBCO’s range of finished furniture comes in
varied shades coated with several layers lacquers. The furniture ranges offered by
RUBCO HAUT WOODS are:
dining table with chair
computer table
TV stands
sofa sets and divan cot
rocker chains
cot
DINING TABLE WITH CHAIR

RUBCO’s range of dining table is available in oval, round, squires with
matching chairs forming an eye catching combination to grace the dining room. It is
available in range of colures like honey, northern rosewood and natural and so on.

COMPUTER TABLE

The computer table offered by rubco hut wood thoughtfully designed to provide
the room for all peripheral accessories and offer unmatched convenience. It is also
available in different colors like honey, northern rosewoods, natural, west antique pine
and pigment red.

TV STAND

The TV stands are simply designed but they do not nearly serve their purpose
by stand out as elegant pieces of home décor as well.
SOFA SET, DIVAN COTS, ROCKER CHAIN

The sofa set, divan cots, rocker chain are exquisite design and range of finish
helps to create beautiful living space. It is also available in range of colours such as
honey, northern rosewoods, natural, west antique, pine, and pigment red.
COT



RUBCO HAUT manufactures both single and double cot and elegant
wardrobes that make bedrooms all most beautiful and comfortable. It is also available
in a range of colors honey, northern rosewoods, natural, west antique pine and pigment
red.

MARKETS

Market of the rubco is divided in to two parts they are;
Domestic market and foreign market. Domestic market is spread all over the kearla.
While considering foreign market, company exports products to UK, USA, JAPAN,
and GULF COUNTRIES.

ISO- CERTIFICATION

ISO 2000
ISO 2001

RUBCO gives more important for the quality f products which can ensure
customer satisfaction
The quality policy of rubco is to give enhanced satisfaction to customers
through manufacture and supply of rubber wood products at high quality and as per the
equipments of customer by the use of modern manufacturing facilities.

COMPETITORS
RUBCO is enjoying monopoly in the market. They has no major competitors in
market.
FUTURE EXPANSION
RUBCO is in the process of setting up a project for the manufacture of tyre and tubes
for two/ three wheelers, passengers, cars etc.
The project is located in the proposed industrial growth center being developed
at valiyavelicham, about 35 km from kannur city.
RUBCO invested Rs 96 million in the casual shoes project. Its location is in
Thalassery. The new plant has a capacity of 1.55 million per annum.



Virgin coconut oil project is the next one. The project envisages establishment of
100 cooperate coconut processing unit in kerala, to start with, which will be increased
to 200 units subsequently for the production of coconut oil directly from green coconut
nuts with uot going through conventional copro or milk route.
The process methodology is commonly known as direct micro expelling
technology.
Capacity of plant is 4000 liters per day and packing capacity is 40 kilo liters of virgin
coconut Oil per day.
ANCILLARY PRODUCTS:
beverage from coconut water
activated carbon
Confectionary products.

RUBCO has a thread rubber project also the first product is conventional thread.
The plant will have a capacity of 1200 tons per annum. Second product is precured
thread. The plant will have capacity of 1200 tons per annum



VISION AND MISSION

VISION
To become a global leader in the production of natural rubber and innovative
production and development.

MISSION

Right information to all customers at all the time.



ORGANIZATION CHART

Board of directors

Managing directors

General manager

Purchase Assistant Chief Account Management
Officer purchase production Officer represent
officer manager

Store Keeper Time Officer Account
clerk

Selection in Selection in Selection in Maintain Sales &
charge QC charge charge saw manager shipping
furniture mill manager

Supervisors Supervisors Supervisors
Assistant
sales and
shipping
manager

Workers Workers Workers



DEPARTMENTAL STUDY

PRODUCTION DEPARTMENT

INTRODUCTION

RUBCO RUB WOOD division has progressively recorded high productivity
and profitability production department in equipped with efficient and qualified
managers and supervisors.
FUNCTION

The main function come under production department are
1 production planning
2 furniture production
3 product development

PRODUCTION PLANNING
It is done on the basis of specification or orders placed by Rubco SALES
INTERNATIONAL LTD and based on domestic order placed by authorized
distributor. The required quality and quantity is specified through production planning
and production is done according to this planning quality is ensured by quality control
department. production planning involves an organization of an overall manufacturing
Operating system to produce a product. Objective of production planning is to provide
a physical system together with a set of operating guideline of efficient conversion of
raw material human skill and other input to finished product.

The production planning procedure are varies from company to company.
Production planning may begin with product idea and a plan for the design of product
and the entire production system to manufacturing of a modified version of existing
product, using the existing facilities. The major factors determine production planning
procedures are;

volume of the product



nature of production process
nature of operation

FURNITURE PRODUCTION
Boiler and saw mill

The process begins from logyard. logyard is a place in which logs are
unloading for the furniture production, Rubco furniture are making only by using
rubber woods. If any defects are found any unloaded rubber wood, the logs will be
send back. There are lots of procedures for checking the useful log. The quality
department will check each and every log.
The second step is to saw the log for the manufacturing of furniture. The logs
cut in to particular length and width after that the log will check again for the
usefulness. if any defect found it will not use further for manufacturing purpose.
The pieces of wood have a particular order for arranging and keeping. it will
keep at a certain quantity of level process continue and keeps the woods the prescribed
manner. The next process is store the material in impregnation plant. The materials are
processing inside the impregnation plant in to add extra strong and durability for
woods.
The replaced woods from the impregnation plant in keeping in KLIN DRYING
room for reducing the water content in the processed wood.
The HOT OIL is sprayed to the room from the boiler. It is used to heat the
wood. A particular type of fan is using for maintaining the temperature level in all area
of the room. The woods are keeping twelve days in the room.
E. G. P (edge glued panel)

There are different types of process in E G P. they are
jump saw
top and bottom plainer
multiple rip saw
sorting
finger joining



molding
composing
end cutting
sanding
finishing
The wood panel boards are creating in this section by using wood pieces. The
furniture manufacturing unit uses only these types of panels. There is no large size
wood piece. Each and every log is cutting in to small pieces. There are lots of
processes involved in this section.
Planning area

It is area in which the wood processes are planning in to two sides. This is the
first process in this section. Wood pieces are taken for joining purpose after keeping
wood in klin drying room for particular period of time. The wood pieces will to having
plain or smooth surfaces. So for the manufacturing purpose it must plain the surface of
all wood pieces.
Machine name: top and bottom plainer
This area is also used for re work of defected material.

Multiple rip saw
This process is also similar to planning but in the process the other two sides are
planning. After this process the wood pieces will have smooth surface in all four sides.
After top and bottom planning and multiple rip saw, a new colour or design is
appearing on the surface of wood pieces. It may be plain surface, line surface or flower
type.
Finger joining
For the manufacturing of the furniture the woods must have a certain level of
length and width. So it is important that the wood pieces must join together. So a
special type of process for the joining the wood pieces is involved, it is called finger
joining. Two machines are using together for this purpose. One is male part and other
is female part. First machine cuts the edge of the wood in the teeth shape but the
second one cut and attaches the glue to the edge.
After that the wood pieces are passes horizontally through the machine and
pieces are automatically joins. A particular length is fixing in the machine and it



automatically cut the joint woods in the same line. The minimum length we can adjust
in the machine is 15×39 and maximum 45×78
Molding
There are two types of machine used for molding purpose. 7 head molder and 5
head molder. This is used for the molding of two sides.

Composing
This is an important in EGP. It is the process of joining the finger joint wood
pieces in a panel format. In this process edge of the wood pieces will not cut.
The finger joined wood pieces are keeping in the composing machine by using
the glue in the rip side.

Cutting
The length of the wood pieces may vary in small difference. So we have to cut
the end of panels for getting correct shape.

Sanding

The wood panels are again sanding by using special type of machine which will
have 3 sanding paper inside. It gives a smooth and plain surface.

Finishing

This is the last section of EGP .some defects or whole may appear in between
the production process. One all the process are completed the defected wood panels are
taking for finishing purpose. For removing the holes in the board wood powder mixing
with glue and fill the gap.
Furniture

The colonial furniture collections from Rubco’s are the ideal way to add
splendor and comfort homes. Than Rubco’s range of finished furniture comes in varied
shades coated with several layers lacquers. The furniture ranges offered by Rubco haut
woods are:
dining table with chair
T V stand
sofa set with divan cot



rocker chain
cot

There are different sections and machines in furniture departments are

narrow and band saw
auto copy shaping machine
wide belt sander
single head double head tenoner
jump saw
back knife lathe
turning sander
single spinning shaper
double spinning shaper
mortiser
router
drilling
spindle sander
edge sander
oscillating drum sander
brush sander
lathe sander
multiple purpose drilling machine
hydraulic multipurpose mortiser

ASSEMBLING

It is the section in which the different furniture materials are joining together for

making the furniture. in furniture section the woods are shaping, sanding, turning and

drilling. These wood pieces are assembling in order to make the exact furniture.

Packing work is also doing in assembling department.



Structure of production department

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

JOIN PRODUCTION MANAGER

SHIFT ENGINEER

PRODUCTION SUPERVISOR

ASSISTANT PRODUCTION SUPERVISOR

WORKER



MARKETING DEPARTMENT

INTRODUCTION

Marketing is the human activity directed at satisfying the need and wants through
an exchange process. In Rubco the entire range of products is marketed by Rubco sales
international limited. The RSIL formulates market strategies for both domestic and
international markets. The marketing department is headed by marketing manager. He
is assisted by junior sales officer in kerala and by area sales manager in outside kerala.
The RSIL follows full cost pricing strategy to the product that is marked by them.
FUNCTIONS OF MARKETING DEPARTMENT

Formulation of effective advertising strategies for winning the market.
Conducting seminar/ exhibition For the purpose of launching new products to the
market and also make the people aware of their existing products
Conducting retailers meet for the purpose of maintaining cordial relationship
between management and distributors.
Conducting consumer survey for the purpose of collecting information from
customers for the further product development and evaluation of existing position
of product in the market.
Formulations of sales strategies in order to achieve the target turn over.
Orientation is given to dealer and distributors to make aware them about the quality
of products.
CHANNELS OF DISTRIBUTION

A channel of distribution is the path through which products move from the place
of production to the place of ultimate consumption. The company distributes its
products through dealers. The company has around 150 dealers throughout India .
 Rubco factory
 Dealers
 Customers



MARKET SEGMENTATION

A market consists of large number of buyers and they are widely scattered. They
are different in their wants, purchasing power, buying attitude, buying practices
etc…..therefore it is desirable to group the buyers on the basis of location, income ,
education, age, sex etc….so as to enhance the satisfaction of the customer and profit to
the market.
This grouping of buyers is called market segmentation. Rubco haut wood follows
geographical segmentation .it is divided in it two.
Home segmentation
It consist of state of kerala

Outside kerala segment
It consists of all states in India other than kerala.

PROMOTIONAL TOOLS

Once the product is manufactured, price fixed and distribution channels are
selected, the next task is informing the prospective customer. The customers of rubco
are informed through the following tools:
Advertising
Dealers meet
Carpenters meets
Discounts, offers, gift packs during festival season.
Sales man gift scheme.
ADVERTISMENT AND PUBLICITY

The major purpose of advertisement and publicity is to promote product effectively
through providing information to customers.
The advertisement methods followed by rubco are:
Sales promotion
Press media
Visual/ electronic media
Hoarding
Exhibition



Laminated boards

BRANDING OF PRODUCTS

Branding gives a name, sign, symbol, design or combination of so as all to
distinguish the products from other similar product. The products produced in the
company are sold under the brand name “Rubco furniture” and “Rub wood EGP board
and beams Rubco home series”
TRANSPORTATION

This is the physical movement of goods from one place to another. Transportation
function of rubco is undertaken by sales and shipping division. The company usually
uses the modes like train, road, and ship for the purpose of transportation.
PRICING POLICY

Pricing policy provides the guidelines within which pricing strategy is formulated
and implemented. Rubco follows cost based pricing policy. The price of the product is
computed by adding certain percentage of profit to the cost of the product per unit.
DISCOUNTS

The company provides 2% trade discount on colonial furniture and panel bards. If
the per purchase value exceeds Rs 8 lakh then 10% discount is given.
MARKETING RESEARCH

Marketing research is concerned with obtaining information regarding market.it is
study of market its self. The marketing research is conducted by the company
regarding changes in price, quality, design, and customer satisfaction level and after
sales service etc
PACKING AND DISPATCHING

Rubco haut only chairs are assembled and packed for selling, and items such as
tables and cots etc are just finished and packed. The products are named with company
name, brand name, brand mark and model number.
Dispatching is done according to the order. The goods are covered with p form
sheets and bubbles sheets and put it into card box for protection. The company mainly
exports products to UK, USA, JAPAN and GULF COUNTRIES.



PRODUCT PACKAGE

Rubco elegance
Rubco welcome
Rubco home nest
Rubco captain
Rubco marshal
Rubco honey comb



Structure of marketing department

MD

GM

MARKETING MARKETING MANAGER MARKETING
MANAGER RCM FPA MANAGER
FCT

Asst. MARKETING
MANAGER

KERALA OUT SIDE KERALA

JUNIOR SALES AREA SALES MANAGER
OFFICER

SALES EXICUTIVE
SALES EXICUTIVE



QUALITY CONTROL DEPARTMENT

INTRODUCTION

The Rubco industrial complex has a separate quality control section with
computerized BHED meters, universal tensile, esters and compression set apparatus,
flexor meters and abrasion testers etc.
This section ensures the quality parameters of all incoming raw materials, in
process material and finished goods.
The company has a well established quality control division. The functions of
quality control division. The function of quality control starts from the log yard and
ends in the dispatching section, so it is very long process. Quality control is strictly
adopted in the following process.
Acceptance of logs
Impregnation process
Kiln drying
Gluing
In process line
Finishing
Packing and dispatching

QUALITY PARAMETERS

Minimum girth should be 28 inch and length should be 4 feet
Tapping mark should be very less
Branches and humps should be avoided
Dead knots and nails should be avoided
Irregular shapes and fungal attacked woods should be avoided
QUALITY OBJECTIVES

High capacity utilization
Enhancing competence of employees
High level of profitability
Low level of rejection



High yield from input materials
Low level of break down
Least possible customer complaints

QUALITY POLICY

Rubco’s quality policy is “to give enhanced satisfaction to their customers through
the manufacture and supply of rubber products by the use of modern manufacturing
facilities. They voluntarily meet the entire product and process related regulatory
requirements. The employees at Rubco are committed to continuously improve their
performance in all sphere of activity”.

INSPECTION

The act of determining the conformance or non conformance of the expected
performance is the function. Here, the manufacturer seeks to determine the
acceptability of the product or part of it. The basis for the inspection is usually a certain
specification, which is called an inspection standard. Comparing the quality of the
product to the standard makes inspection.
In rubco, the inspection standards of every product and process are predetermined
based on these standards. Inspection is carried at all stage of production. Quality
control department conduct three types of inspection for maintain quality of materials
they are
INCOMING INSPECTION

It is conducted when the purchase department purchases the materials to the
production. At the time of production the required quality of to each accepted or it is
rejected.
IN PROCESS INSPECTION

The quality checking is done according to the production process the quality
supervisor inspect entire product production. Then the material is passed of it is
satisfied the required quality otherwise it is send file work.
FINAL INSPECTION



After completion of production process the supervisor conducts its last inspection if
the supervisor is satisfied on the quality of material produced, the materials are send to
dispatch or otherwise they are given to re work.

The quality checking procedures in company are;

Boiling water soak De Lamination test
Cold water soak De Lamination test
Dry salt retention test.
Reagent test
Moisture content test
Concentration check.



Structure of quality control department

Managing Director

General Manager

Quality supervisor

Skilled worker

Unskilled worker



PERSONNEL AND ADMINISTRATION DEPARTMENT
INTRODUCTION

Rubco haut wood has a separate personnel department to perform
personnel functions like manpower planning , recruitment, selection, training,
performance appraisal, employee motivation, welfare, record keeping etc. the
personnel and administrative officer in charge of personnel and administrative
department. The personnel and administrative officer is assisted by time officer.
Rubco is forward looking organization committed to identify train develop and
sustain its human resource in such a manner as to integrate the individual career
aspiration of its executive. Rubco has basically a fair, equitable and performance-
oriented policy with respect to its human resources.
FUNCTIONS

Conducting job analysis
Planning labors needs and recruiting job candidates
Selecting job candidates
Conducting orientation and training programs for new employee
Managing wages and salaries
Providing incentives and benefits
Appraising performance
Communication with employees
Training and developing managers
Building employees commitment
RESPONSIBILITIES OF MANAGER

He is responsible for manpower planning recruitment, selection, training,
compensation package, performance appraisal, maintaining discipline.
He is providing advice and guidance to the officers and staffs working in the
unit under the control of GM in the matter connected with the performance appraisal,
discipline, training etc.



He is responsible for obtaining necessary function for certain of posts, pay
scale, and other required sanctions from managing director or chairman for filling up
manpower requirements at time to time.
He is responsible for proper administration of statutory and non statutory
welfare programs in the company. He is responsible for preparation of wages salary
bull and passing it to finance department for disbursement.
He is responsible for identifying training needs of employees and arranges
various training programs for employees.
MANPOWER DEVELOPMENT IN RUBCO HAUT

The company has well established man power strength. There are 818 workers
employed in different categories of work. The workers of the company are divided in
to four categories they are;
a. Specialized workers
They are carpenters; they concentrate on work like final sanding, assembling etc.
the spray finish also come under this category. The specialist workers have a pay scale
of Rs 350 per day.
b. Skilled workers

They are those who have specialized in a particular job they are basically ITI and
diploma holders. They have pay scale of 320 per day
c. Unskilled workers

They are third category and include those who have undergone 6 months initial
training in the company. They have a pay scale of Rs 250 per day
a. Learners
Learners category includes the newly selected workers, they are actually under
training for the first 6 months, then promoted to unskilled category based on their
performance. They have pay scale of Rs 200 per day.



RECRUITMENT AND SELECTION POLICY
For the recruitment process, Rubco haut wood recruits the employees from both
external and internal sources.
Internal sources of recruitment of Rubco haut wood includes promotion transfer and
some demotions
External sources of Rubco haut wood mainly done by publishing the recruitments
advertisement in daily news paper to some extent company also prefers employees
recommendations. (If the candidate satisfies required quality)
After the recruitment procedure, the next step is the screening of application based on
the notification. In order to select the best candidate company conducts personal
interview. Based on the qualification, experience, and performance of the candidate,
the rank list is prepared and the best one is selected.

Rules regarding recruitment and selection

Any person below age of 18 is not appointed as the worker or leaner.
All workers are selected only after verifying and clearing the data given in the
application form.
The resigned worker and dismissed workers will not be selected
A person should not perform as a part time or full time employee in the other
organization while he is a worker of the company.

TRAINING POLICY

Every employee has to undergo training. They have a probation period of one year
in which first six months are treated as learners. Supervisors will give on the job
training to them during that period. During probation period employees are closely
watched. Any unruly behavior from their part will cause their further service in the
company. In rubco training is provided to the workers under the ministry of safety
training program. During the training period the trainees are given stipend.



PERFORMANCE APPRISAL

It is the process of evaluating the employee’s performance of a job in terms of
requirements. It is considered as the most in dispensable tool for an organization, for
the information it provide is highly useful in decision regarding various personal
aspects such as promotions and merit increases performance measures also link
information gathering and decision making process which provide a basis for judging
the effectiveness of personnel sub division such as recruiting, selection, training, and
compensation.
Rubco huat woods are using grading method for performance appraisal. Supervisor
appointed to evaluate the performance of workers. According to their performance,
they are given grade as below;
A grade - excellent
B grade - good
C grade - satisfactory

Following factors are taken into consideration for fixing grades:

Attendance
Responsibility
Ability to grasp things
Work performance
Quality of output

TIME OFFICE

The main functions of time office are;

To prepare shift schedule on monthly basis
To prepare and display notice of various safety and other matters
To oversee the conduct of staff and the workers, to ensure the general
discipline etc
To maintain out pass register fir proper recording duly sectioned out pass
od employees
To maintain an accident register
To issue visitors pass as per company rules



Rubco haut woods make use of smart card for recording the time of arrival and
departure of the employees.

THE SHIFT TIMINGS AT RUBCO HAUT WOOD:

First shift - 8.30 am to 5.00 pm
Second shift - 5.00pm to 1.00 am
Third shift - 1.00am to 8.30am

If there is any additional work, it is treated as over time and workers get double of
the usual rate of pay. The second shift of workers will get night allowance of Rs 10 and
the third shift workers will get an allowance of Rs 15 each.
REMUNERATION

In Rubco woods, the workers are paid n time rate system. The remuneration of
workers is paid as per minimum wage Act of 1948 and the managerial person’s
remuneration as per the kerala service rule. Company uses the method of paying
double wage in case of overtime and triple wage in public holidays.
COMPENSATION

Compensation means something done by the company to make up for the loss,
deficiency or a fault. The different components of compensation include the following.
a. Bonus

Bonus means something given or paid by the company in addition to what is usual
or expected. In other words, bonus is the sum of the money or equivalent given to the
employee in addition to the employee’s usual compensation. Bonuses are provided to
the employees in the festival seasons and for occasions happen in the company.

b. E S I (employees state insurance) and provident fund (p f)

Rubco haut wood Pvt Ltd provides employee state insurance and provident fund
to the employees. The employer’s contribution to ESI is 1.75% and employee’s
contribution is 4.75% . The employee’s contribution to the P F is 12% and employer’s
contribution is 13%.



WELFARE ACTIVITIES
The following are some well fare activities given to employees;

Labor welfare : Labor well fare funds are given by the
company to increase the standard of living.

Canteen : The company providing quality foods to the employees.
kudumbasree unit with the company complex runs rubco’s
canteen.

Rest room : The company provides rest room for the shift
workers.

Change room : For the workers to change their dress, a change
room is established in the factory premises.

Safety : Safety measures like ear plug, glows, cooling, glass
and masks are given to the employees who work in
the factory.

LEAVE PROVISIONS

Leave with wages will be allowed to the workers as provided for the
factories Act. The company allows an annual leave of 12 days to these employee’s
having as service of 240 days, in the plant excluding other leaves. As per ESI Act, 10
days sick leave and maximum of 30 days in the case of hospitalization are also there.
HOLIDAY

Festival holiday fixed as per national festival Act. Now 13 days are
allowed for festival holidays. National holidays will be allows to the workmen on
provided for in the kerala industrial establishment Act.



RETIREMENT

On attain the age of 58, the entire employee made to retire from their service.
Various benefits like pension, gratuity are sanctioned on retirement. All the rules
regarding retirement in Rubco are governed by standing order. A standing order is an
act, which guides the service rules of employees and employers.

DICIPLINARY PROCEEDINGS

1 Transfer

Employees are liable to transfer from one department to another department of
from one section to another section without any increase in pay.
2 Demotion
In the case of misbehavior on the part of employee the concerned employee will
placed in the lower position. Demotion begins with the reporting the management
about the misconduct and management will appoint an enquiry committee and the
disciplinary actions for him are depend up on the nature of misconduct.
TRADE UNION
The trade union is a inevitable part of modern industrial setup. Trade union
influences industrial democracy morale and productivity. Rubco haut wood has only
one trade union that is Rubco employees union (REU), which is affiliated to CITU.
Since there is only one trade union there is no inter union rivalry.
ABSENTEEISM AND TURNOVER
One of the problem rubco haut wood facing to today is the increasing rate of labor
turnover. it is the outcome of resignation and dismissal of workers. Some of the reason
for the resignation is getting better job, dissatisfaction with working condition, sickness
etc.
Main consequences of labor turnover are losing expert hands, decrease in productivity,
increased cost of recruitment etc.



Structure of HR department

MD

GM

APO

TIME OFFICER

COMPUTER
PROGRAMMER

STENO

JUNIOR CLERK

TYPIST
HEAD GUARD RECEPTIONIST

SECURITY DRIVER
GUARD

ATTENDER



FINANCIAL DEPARTMENT

INTRODUCTION
Financial management, also referred to as corporate finance or managerial finance,
emerged as a distinct field of study at the turn of 20 th century. Finance theory; in
general, rest on the premise that the goal of financial management should be to
maximize the wealth of the share holders.
Finance refers to the application of skill or care in the manipulation in the use and
control of the money .The finance in the modern business world is the life blood of
business economy. We cannot image a business without finance because it is a central
point of all business activities.
FINANCIAL FUNCTIONS
Passing and settlement of all miscellaneous advances.
Perform all works connected with insurance coverage of fixed financial asset.
Keeping personnel files of employees relating salary computation annual
increment.
Prepare profitability, trend, reports, and wages analysis.
Quarterly and yearly financial report preparation.
Making blank statements
Preparation, assisting and coordinating of all works connected with
finalization of accounts.
Assisting statutory/ vigilance/ auditors from head quarters in connect with
audit of accounts of rubco rub wood division.
Make internal and external purchases.
RESPONSIBILITIES OF FINANCIAL MANAGER
Financial planning
Rising of necessary funds.
Controlling the use of funds
Deposition of profit
Accounts finalization
Tax planning



Book keeping and accounting
Internal audit &Profit planning

CAPITAL BUDGETING
Capital budgeting is done at the beginning of the year itself. The requirements of
capital will be specified clearly for the approval. During the budgeted year, if there is any
further requirement of capital is faced then the proper justification has to be made. If the
requirement is seen as important on then approve of the capital is sanctioned the
requirement of additional capital may arise due to change in price of raw materials,
packing materials, transportation cost etc
CASH MANAGEMENT
Cash management system is one of the key areas in any business, apart
from the fact it is the most liquid current asset can be reduced. Cash is the common
denominator to which all current assets can be reduced because that the other major
liquid asset receivable and inventory get eventually get converted in to cash.
CREDIT CONTROL FUNCTION
A trade credit arises when the company sells its products or services on
credit and does not receive cash immediately. it is an essential marketing tool, acting as
bridge of movements of goods, or services through production and distribution stagers
to customers. A company grants credit to protect its sales from the competitor and to
attract the potential customers also. rubco rub wood furniture division does not give
any credit to customers. The sales are making through advance payment or spot
payment.
PLANNING OF FUNDS
Planning of funds is a careful estimate made by the manager about the total
funds required, which includes both fixed and working capital requirements. This
estimation is done by the observation over the physical activities of the company.
ALLOCATION OF FUNDS
Providing the funds to proper place at proper time is also an important task to be
done by financial manager studies the cash requirements of each department and funds
are distributed.
RECORDING OF TRANSACTIONS



Each and every transactions of the company are recorded first in journal and posted
to ledgers.

WORKING CAPITAL
Working capital refers to the amount required to meet the day to day operations of
the business the working capital of the company is 80 lakh per month complete rise
working capital in the following ways
Cash
Inventories
Accounts receivable.
FIXED ASSET
It is the major part of working of a company. Depreciation of fixed asset is charged
on the diminishing balanced method.
Vehicle
Plant and machinery
Generator
Building
COST CONTROL
The costs are controlled in raw material and reduction to expense there is
limitation of utilization of funds. The company will all ways have the comparison of
budget actual.
AUDITING
The accounts of the company should be compulsorily audited. The auditing work is
done by m/s Varma & Varma, kannur. There is an internal auditing system which is
done by the internal auditor.
TAX STRUCTURE
Company pays sales tax, income tax and excise duty ( 14%) VAT 12.5% to the
kerala Govt.in accordance to change in state budget.



STRUCTURE OF FINANCE DEPARTMENT

MD

GM

A/C
OFFICER

JUNIOR JUNIOR
CLERK CLERK



PURCHASE DEPARTMENT

INTRODUCTION
The purchasing department plays a very important role in organization because
purchasing has effects on every vital factor concerning the manufacture, quality, cost,
efficiency, and prompt delivery of goods to customers. The purchasing department is
responsible for the efficient purchase of all goods of proper quality required for the
different department. Purchasing is the most important function of material
management as the moment an order is placed for the purchase of materials; a
substantial part of the company finance is committed which effects the cash flow
position of the company. The head of the department is usually known as purchase
manager.

FUNCTIONS OF PURCHASE DEPARTMENT

To establish purchase policies, procedure and practices.
To identify and choose the best source of supply materials
To receive purchase requisition from all departments.
To place purchases order with supplier and maintain records
To check the quality and quantity of materials received.
To verify and approve the invoice for payment
Functions of purchase department in rubco
The company mainly requires two types of materials- direct material and indirect
material. The direct materials for rubber wood furniture product are the round log
rubber wood and indirect material includes hardware item used for production. The
amount of raw material purchased by rubco is around 30 lakh per month which
comprises item including rubber wood andhard ware item like screws, bolt, nail etc
consumables like machine belt, lubricant oil, engine oil, break oil etc
chemicals like boric acid and borax
finger glue
Lacquer items, thinner, Steiner, sanding belt paper etc.



As a substantial portion of the company’s finance is used for purchasing the
rubber wood, the purchase department should keep in mind the following
specifications at the time of purchasing rubber wood
The logs must have a minimum of 24 inch diameter
It must have minimum of 4 feet to 8 feet length
There must be no tapping mark, bending, nails etc
Logs having excess fiber should be rejected
At present suppliers of rubber wood are from;
Kerala : Perumbavoor, Taliparanba, Kasargod, Iritty
Karnataka : Sullys, Manglore
PURCHASE PROCEDURE

Rubco is following a purchase procedure which is very systematic and scientific.
The main objective of this purchase procedure is to ensure all material to confirm to
the specific requirements. The following are the various purchase procedure which are
followed by rubcu huat Pvt Ltd.
1 Receipt of purchase requisition
The purchasing function of ruubco huat Pvt Ltd starts from receiving purchase
requisition. A purchase requisition is a form is used as a formal request to the
purchasing department to purchase materials. This form is prepared by the
departmental heads for special materials not stocked as regular items. It contain the
details with ordering number and specification if any, quantity of item and required
date etc.
2 Inviting quotations
The company calls tender for purchase of materials from approves and provisional
vendor. In responds to this tender the company gets the quotation from various
suppliers that they are ready to supply goods by specifying the quality and price.

3 Preparation of comparative statement.

On receipt of quotations from the suppliers, the purchase officer prepares a
comparative statement on analysis of the quality of raw material at low rat.



4 Selections of suppliers
After the preparation of comparative statement, this comparative statement is
forwarded to purchase committee. The purchase committee select the most favorable
supplier by considering the person who is supplying good at least cost with prescribed
quality and with in the prescribed time.
5 Preparation of purchase order
After getting approval from purchasing committee, purchase department prepares
purchase order. Purchase order is a written authorization to the supplier to supply the
material. The purchase order contain the information such as material description
quality , rate, total cost delivery rate, terms and conditions etc.
6 Preparation of goods receiving notes at the store
Once the order is placed, the suppliers deliver the required materials . on receipt of
item stored in the department will prepare goods receiving notes and forwarded to the
purchase department for further proceedings.
7 Recommendation of invoice for the release of payment to the
suppliers
After proper documentation by the purchase department the invoice and goods
receiving notes are forwarded to the financial department for arranging the payment.
Usually the company makes the payment to the supplier with in one month.



Structure of Purchase Department

Managing
Director

GM

Purchase
Manager

Purchase asst. Stock
Manager Keeper

Asst. Store
Keeper



SALES AND SHIPPING DEPARTMENT

INTRODUCTION

Rubco sales international Ltd is the sales and marketing outfit of entire rubco group
of companies. The company is run by eminent professionals with the active support
from the management. The company has already well established dealer/ distributor
net work and it is expanding its horizon throughout the world.
Rubco haut Pvt Ltd has one sales and shipping officer. He controls the sales
activities in the company. Shipping an activity taken by central exercise, they check all
products in the company itself to avoid damages incurring in loading. Loading of
goods in the container at shipyard is called shipping. Shipping of product is done from
Cochin shipyard.
FUNCTIONS OF SALES DEPARTMENT
Receiving data from dealers and arranging for the dispatching of products.
Preparation of invoices and other related document for dispatch
Maintaining of sales register and filling of sales tax returns and other statutory
records with the sales tax department
Maintaining and submission of statutory documents pertain to central excise
department
Preparation of quotations as per the requirement from the parties in
consultation with the production department and accounts officer.
FUNCTIONS OF SHIPPING DEPARTMENT
Preparations of pro necessary shipping documents and forward the documents
to clearing and forwarding agents.
Coordination with CHA for placement of containers
Issue of staff and transportation at lowest cost
Post shipment documentation
Preparation of post shipment documentation and forward same to the bankers.
Preparation of bank realization of certificate



To coordinate/ follow up with the bank to ensure that the payment has been
received in time
Maintenance of register of export for each unit.

FUNCTIONS OF EXPORT SECTION
Finalization of export contract.
Coordination between departments and matters connected with export
Issue of packing instructions for export to concerned department
Make arrangement for inspection of goods.
EXPORT PROCEDURE

Locating the potential buyer by searching through various portal, trade
journals, foreign visit export promotion councils and also by responding
enquiries.
Contract thus by mail, telephone and intimating the company intention.
Negotiating prices terms of payment and delivery terms.
Sending sample brochure and other requests
If price and terms are approved, awaiting their purchase order/ contracts.
Filling shipments documents through the(custom home agent).
Providing necessary advice to buyer
Follow up the cargo till it reaches the destination.
Effort for the order.
Obtain buyer feedback and product quality.



Structure of sales and shipping department

MANAGING
DIRECTOR

GENERAL MANAGER

SALES AND SHIPPING
OFFICER

JUNIOR SALES JUNIOR JUNIOR SALES JUNIOR
OFFICER SALES OFFICER KERALA SALES
KERALA

SALES SALES SALES SALES
EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE



PORTER’S FIVE FORCE ANALYSIS OF RUBCO HUAT WOODS :
Michael Porter found five competitive forces that help to exist in the market by every

single industry. These forces used to analyze position of the firm in the industry and market.

Thus it helps in decision making process also for improve its efficiency and profitability in

future.

1. Threat of New Entrants
The threats of new entrants are very low. In kerala it is very difficult to a new firm to

enter in furniture market. New entrants would be less because of the huge amount of

investment to set up a furniture company.

2. Bargaining Power of Suppliers
Suppliers for these items are closely related with RUBCO

Timber



Polish material’s

Miscellaneous

The purchasing department must be very careful regarding purchasing of everything and to

ensure that all items conform to their quality standards. This purchasing department must

want to take care in the cost of product also.

3. Threat of Substitute
Furniture made of steel; plastic, fiber etc. are threat to companies like Rubco furniture

which make their furniture out of wood. Such furniture’s are less costly compared to those

made of wood and are also available in a number of designs. They are long lasting and easily

portable from one place to another. So, there is a chance that customers may get attracted

towards such furniture’s. So the threats of substitutes are more

4. Bargaining Power of Customer

The bargaining power of customers in furniture industry is high, but in RUBCO

furniture it is low since they give life time guarantee for their products. But, at times when

the customers who come are related to the managing partners or relatives of other officials in

the company, they will be forced to give some reductions in the product.

5. Existing Competition

At present RUBCO is having no major competitor at its market place and enjoying

almost monopoly like situation, Furniture industry in India has started growing in a vast

manner. Furniture being a necessity its need have risen to a large extent. Now days they have

started developing the industry.



.

7’s McKINSEY MODEL

BACK GROUND OF THE MODEL

The 7’s model is better known as Mc Kinsey’s 7s. This is because the two
persons who developed this model. It is developed by tom peters and Robert
waterman. They published their 7’s model in their article “structure is not
organization “(1980) and in their books “the art of Japanese management” (1981) and
in search of excellence (1982).

Structure

Strategy System

Shared
Values

Style
Skill

Staff

Mckinsey’s 7’s model



The 7’s model is a tool for managerial analysis and action that provides a structure with
which to consider a company as whole. So that the organizations problems may be diagnosed
and a strategy may be developed and implemented.

The 7s of Mckinsey’s model are:
Strategy

Structure

System

Style

Staff

Skill

Shared values

These are the 7 s elements are distinguished in so called hard S’s and soft S’s. The hard
elements are feasible and easy to identify. They can be found in strategy statements corporate
plans organizational charts and other documentations.
The four soft S’s however, are hardly feasible. They are difficult to describe since
capabilities values and elements of corporate culture are continuously developing and
changing. They are highly determined by the people at work in the organizations. Although
the soft factors are below the surface, they can have a great impact of the hard structure,
strategies and system of the organization.

Practical relevance of hard S
Here strategy, structure and system can consider as “Hardware” of success of an
organization.

Strategy



Actions a company plans in response to or anticipation of changes in the external
environment.

HRM strategy of Rubco Huat Woods Pvt Ltd
To provide social welfare measures to work force

To make the best and efficient

To recruit and select right person for the right job at the right time in the right place.

Production strategy of Rubco Huat Woods Pvt Ltd
Producing high quality of goods

Quick production of products or goods

Efficient use of raw materials

Minimize the waste in the production process

Financial strategy of Rubco Huat Woods Pvt Ltd
Maintaining the perfect accounting and auditing system

Reducing the block of capital

Maintaining the cash receivables

Marketing strategy of Rubco Huat Woods Pvt Ltd
To create new customers

To motivate the sales team

Making profit through customer satisfaction

Develop a pricing strategy



Structure
Organizational hierarchy - RUBCO rubber wood division.

Chairman

Managing Director

General Manager

Chief Purchase Account Admin cum Sales & Marketing
Production personnel Manager
Manager Manager s Officer Officer Shipping
Manager

Productio Store Junior Time Sales Asst
n Keeper Clerk Officer Executiv Marketing
Manager
Manager e

Shift Clerical Computer Head Clerical Junior
Engineer Staff programmer Guard Staff sales
officer

Quality Section Maintenance
Superviso Supervis Engineers Sales
r or Executive

Skilled/unskilled workers



System
The formal and informal procedure that support the strategy and structure.

System of HR in Rubco Huat Woods Pvt. Ltd
The system oh HR undertaken by Rubco is enough competent for leading their
employees towards the ultimate objectives. Below given the diagram briefly explain the
system of HR in Rubco.

Resource Resource HR
Requirement Planning budgeting

Resource Selection Responsibilit Performance
allocation process y allocation verification

Appraisal Training Posting for
employees on job new area

Performance Designing of Implementatio
evaluation in system in n of HR
the new area new area system in new
area

Study the Check the Allocation of duties,
conformance effectiveness responsibilities and
in the new of each authority of each
area employee personnel



Practical relevance of soft ‘S’
Skill, style, staff and shared values can be seen as the “software” of success of an
organization

Skill
The Rubco’s recruitment is mainly through advertisement in leading newspaper based on the
recruitment of the organization. The MD consulting with administrative personnel officer to
decide the number and type of people needed for the organization.

Qualification required for the personnel
Technical staff : ITI/Diploma and 1or 2 years experience
Office staff : Degree, sufficient computer knowledge,
Fluency in English and minimum 2 years
Work experience.
Managerial personnel : Minimum 5 years of work experience,
Qualified from reputed institution and
have a relevant knowledge in the latest
Computer terminologies and MBA

Style
It says about how the decisions are made and the flow of authority in the organization. The
Rubco was using the participative leadership style order to take the decision is taken by the
management by discussing with concerned supervisors or workers. The organization is
taking the day to day decision such as the quality of output usage of materials, purchasing etc
are determined by the production manager to concerned supervisors or workers. So the
decision making is decentralized.

Staff
The term staff refers to the way organization introduce young recruits into the main stream of
their activities. Around 775 workers are working in the company. They are

Specialist / highly skilled workers – 35



Skilled workers – 146
Unskilled workers – 347
Semi skilled workers – 31
Learners – 54
Casuals – 73
Saw workers – 35
Staff (including managerial staff) – 54

Shared values
These are the guiding principles, fundamental ideas around which a company is
built. It must be simple usually stated at the abstract level, have great measuring inside the
organization even through outside may not understand them. These are the main values on
which the company is built. These values are shared by the members in the organization.
It remains customer focused by providing the quality cost and through
manufacturing excellence, adopts a continuous of all organization activity to meet dynamic
requirement of customers. It empowers all employees across the organization to achieve total
quality. The company aims at customer delight by exceeding expectation blend of quality-
cost-delivery of the company’s products and services that company provides.



SWOT ANALYSIS

The overall evaluation of company’s strength, weakness, opportunities and threats
is called SWOT analysis.

INTERNAL ENVIRONMENT ANALYSIS (STRENGTH/
WEAKNESS)

Each business needs to evaluate its internal strength and weakness periodically. It
can do so by using a form shown in the marketing memo checklist for performing
strength/ weakness analysis management or outside consultant, review marketing,
financing, administration, manufacturing and organizational competencies and rate
each factor as major strength or minor strength or neutral factor, minor weakness or
major weakness.
EXTERNAL ENVIRONMENT ANALYSIS (OPPORTUNITY AND
THREAT ANALYSIS)
In general, a business unit has to monitor key macro- environment forces
(demographic environment, technological, political legal and social cultural) and the
significant micro environment factors (customers, distributors, dealers, retailers) that
affect its ability to learn the profit.
STRENGTH
Rubco mattress division has lot of product variety and price range.
In the company there exist a cordial relationship between employee and top
level management and among dealers and distributors.
Through effective marketing the rubco products could have acquired with
market acceptance and customer preference with in a short period of being
established.
Rubco has well developed corporate strength; this is one of their major
strength.
Style of leadership that company is leadership through dedication and
coordination. That encourages employees of organization to work towards
their organizational goals.



Strength of the company lies in the quality of products, wide range of products
capable to challenge variable environment conditions, goodwill, and customer
service, tech advice, marketing intelligence, wide network, and interaction
with customers.
Effective material management system.
Ability of top level management to manage strategic change
Good financial management system.

WEAKNESS

The company is newly established. There for most of the employees are fresher.
There for company has to be conduct lot of training program to make the employees
suitable for the work environment. So large volume of productive time consumed is to
make enable there in experienced worker to familiarize with their work procedure to be
followed.
The weakness appearing most conspicuous to make their product acceptable
By customer in the higher price compared to their competitors.
Rubco going to expand their market overall in south India but transportation
from kerala to other market will be a big burden they are facing in the
marketing. When comparing to their competitors they can easily supply goods
in to market according to market demand because they are having
manufacturing plant in their states.

OPPORTUNITIES
The company has introduced lot of product variety in the market there for
customers having lot of alternatives to make their on decision.
Rubco rubwood division is not yet fully tapped their hundred percentage
utilization of existing machine capacity so opportunities lies there.
In factory to undertake new project regarding project diversification.
Opportunity of identifying the region where introducing more and more
quality products so that product structure can withstand and different regional
environment.



Rubco is not facing high level of competition, so their products having higher
demand in the market, it is because of the quality policy that they are also
adopting in the production process.
Rubco furniture has customer in European countries also.

THREATS
Each and every company facing threats in the market because customers
requirements are changing day by day rubco is also facing the same problem
A lot of unauthorized companies are came in to existence in the market they
are providing product of low quality at few ever price and attracting small
customers
Lack of raw material is also a major threat faced by the company



FINDINGS

o Kerala state rubber corporation has in short span, redefining cooperative
sector functions and set the place for the cooperative movement in Kerala
today. Rubco was set up in year 1997 with the objective of effectively
utilizing the abundantly available rubber in Kerala.
o Majority of worker having 6- 10 years of experience
o Workers are satisfied with the motivational level provided by the company.
o More skill based activities are there in the company so educational
qualifications of workers are mostly till sslc and +2.

FOLLOWING SUGGETIONS ARE MADE

Rubco has market in other country, but the company has to strengthen their supply
chain. In order to tap the target market the company has to strengthen their supply
chain all over India
It has lot of franchises in Kerala they must start new outlets in various cities in our
county.
It can increase their productivity by utilizing the availability of the employees and
by adding plant and machines.
The company has to take care about to provide conveyance facility to employees.
The organization must be provide more counseling program to boost up employee
morale.
If the management provide performance and potential appraisal for employees,
that will be better for the organization.
Management should take interest in the career development of its employees
More attractive and informative website should be created.



CONCLUSION
During this period I understood that the rubber wood has very good future and it’s
furniture will have demand in the market. It can compete with other wood based
furniture product many countries are trying to improve their productivity, in India
Rubco board (under Govt of India) plays a major role for helping the farmer for
improving their Rubber plantation. During the past few years the production were
increased and the states like Kerala. It is a success. The Kerala state rubber cooperation
has 5 division and more than 2000 people are working there. The industrial relation
atmosphere is cordial and the focus is also on training at all levels including workman.

Rubco is in developing stage, and due to heavy expansion plans taken by the
company has declining trend of profit but this position will be recovered in long run



BIBLIOGRAPHY

BOOKS
KOTLER , PHILIP – MARKETING MANAGEMENT
RAO , V S P – HUMAN RESOURCE MANAGEMENT
RAM CHARAN -LEADERS AT ALL LEVELS

WEB
WWW.ANSWER.COM
WWW RUBCOGROUP.COM
WWW.RUBCO HAUT WOOD.COM


Rubco organizational study

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