introduction rahul
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INTRODUCTION
An organization is a social arrangement which pursue collectivegoals, which controls its
own performance, and which has a boundary separating it from
i tsenv i ronmen t . Organ iza t ion i s the a s soc ia t ion fo rmed by a g roup o f pe
op l e w ho wo rk ed individually or in groups to achieve common set ofgoals.Organizational studies are the study of individual and group dynamics in an
organizationalsetti ng, as well as the nature of the organization themselves.
Whenever people interact in anorganization, many factors come to play. Organizational
studies attempts to understand themand hence it is essential to an MBA program as it helps
them to connect theory with practice.As a part of the MBA program I an
organizational study was conducted at OUSHADHI, toknow about the functions of an
entire organization. The study was conducted for a period of one month. The aim of
the s tudy i s to a cqu i re p rac t i c a l knowledge o f the app l ic a t ion
o f management theories in the functioning of the organization and it also helps in
understandingthe organization structure and functions of various departments in the
organization
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INDUSTRY PROFILEAYURVEDA PHARMACY.The pharmaceutical industry develops, produces, and marketsdrugs
licensedfo r u se a s med ica t ions . Pha rmaceu t ica l compan ie s c an dea l in generica n d o r
brand
medications. They are subject to a variety of laws and regulations regarding the
patenting,testing and marketing of drugs. The earliest drugstoresdate back to the
middle Ages. Thefirst known drugstore was opened by
Arabian pharmacistsinBaghdadin 754
and manymore soon began operating throughout themedieval Islamic worldand eventually medievalEurope. By the 19th century, many of the drug stores in Europe and North Americahadeventually developed into larger pharmaceutical companies. The industry remained
relativelysmall scale until the 1970s when it began to expand at a greater rate The Indian
Pharmaceutical Industry today is in the front rank of Indiass c i e n c e -
b a s e d i n d u s t r i e s w i t h w i d e r a n g i n g c a p a b i l i t i e s i n t h e c o m p l e x f
i e l d o f d r u g manufacture and technology. It ranks very high in the third world,
in terms of technology,quality and range of medicines manufactured. The Indian
Pharmaceutical sector is highl yfragmented with more than 20,000 registered units. It has
expanded drastically in the last twodecades. The leading 250 pharmaceutical companies
control 70% of the market with marketleader holding nearly 7% of the market share.
It is an extremely fragmented market withsevere price competition and government
price control. Ayurvedic Pharmacy (AP) is emerging as an independent science largely duetoglobal acceptance of Ayurveda. Ayurvedic Pharmacy is not new subject and has recentlyit
has faced drastic transition. Ayurvedic Pharmacy has roots in Dravyguna, Ras-Shastra
andBhaishjya Kalpana. Ayurvedic Pharmacy utilizes drugs of composite origin including
plant,animal, mineral and marine sources. Ayurvedic medicines are produced by several
thousandcompanies in India. It is estimated that the total value of products from the entire
Ayurvedic production in India is on the order of one billion dollars. The industry has been
dominated by
6less than a dozen major companies for decades, joined recently by a few others
that havefollowed their lead, so that there are today 30 companies doing a million dollars or
http://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Drug -
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more per year in business to meet the growing demand for Ayurvedic medicine.The products
of these companies are included within the broad category of "fast movingconsumer
goods". Most of the larger Ayurvedic medicine suppliers provide materials
other than Ayurvedic internal medicines, parti cularly in the areas of f oods and
toiletries, wherethere may be some overlap with Ayurveda, such as having
traditional herbal ingredients inthe composition of toiletries. The key suppliersin Ayurveda are Dabur, Baidyanath, andZandu, which together have about 85%
of India's domestic market. Exports of Ayurvedicmedicines have reached a value
of 100 million dollars a year. About 60% of this is crudeherbs, about 30% is
finished product shipped abroad for direct sales to consumers, and theremaining
10% is partially prepared products to be finished in the foreign countries
AYURVEDA: THE SCIENCE OF LIFE.Ayurveda i s a s c ience wh ich inden ted to bene f i t the en t i re wor ld . In
anc ien t In d i a i t was considered as a great science in touch with Indian philosophicalthoughts and its tenets werefound highly beneficial as a system of medicine. Ayurveda aims
physical, psychological andsocial welfare of living being. It envisages the means of
preservation of health, preventionand treatment of various ailments.
Approach of Ayurveda is f ie ld or ien ted , ho l is t ic andfunc t iona l . This
science of life utilizes wealth of nature for increasing the resistance of the bo dy
and t rea t s man a s a who le and use s d rug a s a who le a s we l l . Ayurveda
vi es t ha t successful medical treatments depends upon four factors-the
physic ian drugs or diets, nurseand pat ien ts . The obj ecti ve of the sc i ence of
l i f e i s e s tab l i sh ing the equ i l ib r ium o f
bodye lemen ts . Ayurveda favo rs admin i s t ra t ion o f na tu ra l r aw d rugs and
the i r p repa ra t ion .Gene ra l ly A yurved ic med ic ine s cause no tox ic o rsi de ef fe ct s, no qu es ti on of to le ra nc e, resistance and addiction.
PHARMACEUTICAL SCIENCE OF AYURVEDA.The pharmaceutical science of Ayurveda deals with the preparation of
effectiver e m e d i e s f o r t h e e r a d i c a t i o n o f d i s e a s e s a n d p r e s e r v a t i o n
o f h e a l t h . P h a r m a c e u t i c a l p reparat ions are made with a v iew to make the
drug more potent, preserved and clinicallyeffective. Mode of preparation plays an
important role in the absorption of drugs
SCOPE OF AYURVEDAA y u r v e d a h a s d e a l t w i t h a n a t o m y , p h y s i o l o g y , E t i o l o g y , P a t h o l o
g y , T h e r a p e u t i c s , achievements of good health, hematology including the
stage of the disease,
physicians,t h e r a p i e s i n c l u d i n g w h o l e s o m e l o c a l i t y a n d p r o c e
d u r e . T h e b o d y i s c o m p o s e d o f p a n c h am a h a b oo t h a s a n d d i v i
d e d i n t o s e v e r a l o r g a n s . I t s m u l t i f a r i o u s f u n c t i o n s a r e m aintained
and regulated by the food that one takes. The unwholesome contact with
sense,intellectual blasphemy and seasonal variations constitute the etiology of
the diseases. Thedisturbance of the equilibrium of the dhatus is responsible for
the causation of the diseases.Different seasonal changes and the different stages of the
manifestation of diseases, constitutethe time (Kaala). The procedure of treatment to befollowed depends on the time, the diseaseand the drug.
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AYURVEDA IN INDIA
Native to India, Ayurveda is the ancient medicinal form, developed during the Vedic
times,about 5000 years ago. The word 'Ayur' means life, while 'Veda' means
science. Therefore,Ayurveda literally means the 'Science of Life'. It is not just a
medicinal system, but also away of life. Ayurveda deals with the physical, as well asspiritual health. The medicinal formis governed by the laws of nature, which suggest
that life is a combination o f senses, mind, body and soul. According to the
science of life, the structural aspect of every individualcomprises five elements-
earth, water, fire, air, and space. While giving Ayurvedic treatmentto a person to cure a
particular disease, the ph ysical, m ental, emotional and spiri tual well - being is
taken into consideration. The best part of acquiring an Ayurvedic treatment is that if the
prescribed doses of medicine are taken, the diseases can be cured in the most effect way.The
Ayurvedic medicines generally come in the form of powders, tablets, decoctions,
andmedicated oils, that are prepared from natural herbs, plants and minerals. In
addition,
thed i s e a s e s t r e a t e d a n d c u r e d b y A y u r v e d i c m e d i c i n e s d o n o t c a us e a n y s i d e e f f e c t s . According to Ayurveda, the structural aspect of every individual
is made up of five elements- earth, water, fire, air and space. The functional aspect
of the body is governed by three biological humors. Traditional techniques and
processes are used to prepare the medicines athome, while certain amount of
mechanization is inevitably used for large-scale production.The beauty of the
therapeutics is that they contain the active principles in their natural forms
8and their administration in prescribed dozes does not cause any side effects to
the pat ients.Ayurveda g ives a comple t e look in to the l i f es ty le of ape rson , l ike st a r t ing f rom h i s /he r pe rsona l i ty to the da i ly food hab i t s .
The Science of Life helps us in unders tanding eachindividual a t a very
subtle personal level and giving a detailed description about the diet,daily routine,
lifestyle, actions and activities to be followed. The science teaches how to liveli f e in a
ba lance way . Ayurveda a ims a t hav ing a hea l thy and happy soc ie ty ,
f r ee f r om diseases. India has gained worldwide recognition for its indigenous and extensive
Ayurvedictreatment. Various centers are established throughout the length and
breadth of the country,wherein authentic Ayurvedic treatment is given. Kerala is the hub
of Ayurvedic treatments inIndia. Ayurvedic treatment's soothing effect on the body and soul
has attracted tourists fromdifferent parts of the country as well as from across the
globe. This has proved a boon for touri sm in the s ta tes of Ind ia , espe cia l l yKerala, where Ayurvedic treatment is given atvarious health centers and
tourists resorts
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STATUS OF AYURVEDA IN INDIA
Number of registered medical practitioners: 366,812
Number of dispensaries: 22,100
Number of hospitals: 2,189
Number of hospital beds: 33,145
Number of teaching institutions (undergraduate): 187
Number of upgraded postgraduate departments: 51
Number of specialties in postgraduate medical training: 16
Number of pharmacies manufacturing Ayurvedic medicines: 8,400
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MODERN MARKET DEVELOPMENTS
9TheSAARC- Sou th As ia Assoc ia t ion fo r
R eg io na l Co op er at io n wh i ch i nc lu de In di a, Pakistan, Nepal, Bangladesh, Bhutan,
Maldives, and Sri Lanka- These countries all have beeninfluenced by Ayurvedic
medicine. Trade in Ayurvedic medicines within the SAARC ismostly limited
to raw ma te r ia l s tha t g row in one reg ion (e .g . , h igh moun ta in s ,
northernclimate) and are then exported to other regions. Because of the large
number of very smal l fac tor ies tha t t ry to se rv ice the loca l communi t ies ,
with products labeled with the locallanguage, there is little opportunity for
suppliers in one SAARC country to send finished products to another SAARC or
even abroad. Entrepreneurs in these countries, mainly inIndia, are seeking to
b reak in to the marke t fo r na tu ra l p roduc t s have de te rmined tha t
thedemand fo r t r ad i t iona l s ty le A yurved ic med ic ine s bo th in s ide and ou
t s ide t he r eg ion i s limited. They have aimed to bolster interest by carrying out scientificresearch into promisingherbs and formulas that are based on Ayurveda but not
neces sari ly reflect ing tradi tional practices. Of necessity, such research eventually
focuses on finding of active ingredients, andthis has led to the development of
i so la tes f rom p lan ts tha t a re so ld as "nutr iceu t ica ls"-subs tances no t
registered as drugs, but used like nutritional and dietary supplements. For these,
there is a growing worldwide demand.
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COMPANY PROFILEOUSHADHI.
The Pha rmaceu t ica l Corpo ra t ion ( Ind ian Med ic ine s ) Ke ra la L td o r
Oushadhi is a herbalAyurvedic medicines production company under the
direct control of Kerala Government.Directly controlled by Health and Family
Welfare Department of Kerala State Governmentand is governed by a Board ofDirectors, appointed by the Government of Kerala. Originatedas Sree Kerala Varma Govt.
Ayurvedic Pharmacy in 1941 at the instance of His Highness theMaharaja of Cochin, for
the supply of medicines to Govt.Ayurvedic Hospitals in Thrissur ander s twh i l e p r i nce l y
fami ly o f Coch in S ta te . In 1959 i t i s conve r ted and reg i s te red a s Co-
operative Society, and named as Sree Kerala Varma Ayurvedic Co-operative
Pharmacy &Stores Limited, No.4318, Thrissur. On 08.09.1975 incorporated as a
company under theCompanies Act 1956 and renamed as The Pharmaceutical
Corporation (I.M) Kerala Ltd
Thrissur and its operations started on 10.07.76 with the take over of the business ofSKVACPharmacy. The company supplies Ayurvedic medicines to 1000 plus
Ayurvedic treatmentcenters functioning under Kerala Government. Their
med ic ine s a re a l so ava i l ab le in
t hem a r k e t . T h e c o m p a n y a l s o s u p p l i e s m e d i c i n e s t o o t h e r s t a t e
G o v e r n m e n t s i n I n d i a . M a d y a p r a d e s h , R a j a s t a n , H a r y a n a , M a h a r a
s h t r a , P u n j a b , C h a t h i s g a r h , O r i s s a , a n d Pondichery.
LOCATION
Registered Office: Shoranur road, Thrissur, Kerala, South India.Factory: Kuttanellur, 8 Kms
from Thrissur Town.Office: Kuttanellur, 8 Kms East from Thrissur Town.OBJECTIVES
Manufacturing and Marketing of high quality Ayurvedic medicines
Research and Developmental studies on Ayurvedic formulations.
Supply quality ayurveda medicines to all Government dispensaries and
hospitals inthe state at subsidized price.
Promotional activities on medicinal plants Cultivation.
Health Care through Panchakarma therapy and Clinical Research Program.
Implementation of Govt. of Kerala Health Care Programmes.
To act as a price stabilizing
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FEATURES
The company manufactures more than 450 Ayurvedic formulations as per ancient
classical texts, rare combinations of expert, experienced Keralite
authori ties andspec i a l combin a t ions deve lop ed i n th e Res earch wing . The
co mp an y up ho ld s an ci en t traditional methods of manufacturing along with
modern machinery and technology u nder strict quality control measures. The
whole manufactur ing activ ities are under the direc t andexpert supervision by
qualified Ayurvedic Physicians. Quality medicines are made availableto the public at
reasonable price
The company meets the entire medicine requirements of Government Ayurvedic
Hospitalsa n d D i s p e n s a r i e s u n d e r t h e D e p a r t m e n t o f I n d i a n S
y s t e m s o f M e d i c i n e s , K e r a l a . The pharmacy fulfils the demands f rom
Directorate of I.S.M.Bhopal, Jaipur National Instituteof Ayurveda, Government
Hospitals and Dispensaries under Central Government
HealthSchemes, Employees State Insurance Medical Services, Government
Ayurveda Colleges,Tribal Welfare Department, Govt. Ayurvedic MentalHospital, Kottakkal, Government of Kerala ICDS Cell programs. Public demands
are met through a network of 500 exclusiveOushadhi Dealers and Agents. The
organization implements health care projects from Local bodies. Propagat ion of
Ayurveda by establishing specific clinical practices all over
India.A l s o i m p l e m e n t s m e d i c i n a l P l a n t s C u l t i v a t i o n p r o g r a m l i n k
e d w i t h l o c a l b o d i e s a n d e n t r e p r e n eu r s u n d e r b u y -
b a c k a r r a n g e m e n t . T h e r e i s a n u r s e r y d e v e l o p m e n t f o r t h e product
ion of quality seedlings.The annual national conference aimed at education on
medicinal plants is conducted under the aegis of oushadhi. Continuing
Medical Educat ion for Ayurvedic practi tioners is another positive step by the
company. It has a wide product range of more than 450 medicines, 15
of them a re pa ten ted to the company . A n Ayurved ic hosp i t a l w i th panch
aka rma t r ea tment facilities is the latest development by the company.
PANCHAKARMA HOSPITAL & RESEARCH INSTITUTE THRISSUR
The Panchakarma Hospital & Research Institute is situated in Thrissur. The hospital
providesmodern amenit ies l ike luxury furnishing, a ir-
c o nd i t io n in g , s p ec i al t r ea t me n t r o om s e t c. O u s h a d h i P a n c h a k a r m a H o
s p i t a l a n d R e s e a r c h I n s t i t u t e i s f u l l y o w n e d b y K e r a l a G o v e r n m e
n t . A y u r v e d i c t r e a t m e n t i s a t r a d i t i o n a l p h e n o m e n o n o f I n d i a . Ou s h a d h i P a n c h a k a rm a H o s p i t a l a n d R e s ea r c h I n s t i t ut e w i l l b e a n a t t r a ct
i on fo r peop l e becaus ePanchakarma therapies are inseparable part of Ayurvedic
management and can be called theessence of Ayurveda. As a part of diversification program,
Oushadhi has entered in the fieldof health care to provide quality treatment to the public.
Adhering to the traditional
m e t h o d s , O u s h a d h i o f f e r s m o s t m o d e m f a c i l i t i e s f o r h e a l t h c a r e p r a
c t i c e s t h r o u g h O u s h a d h i P a nc h ak a rm a Ho s pi t a l a n d R e se a r ch I ns t i tu t e
a t the hea r t o f Kera la s C ul t u ra l cap i t a l , Thrissur.Global attraction towards
Ayurvedic system of medicine, made hopeful chances toimprove the system.
Panchakarma and related health care practices are the integral part of Ayurvedic
system of medicine.
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12HOSPITAL COMMITTEEA committee to advice Oushadhi on various technical aspects of hospital
administration isconstituted. The committee includes experienced and
respectable Acharyas from
differents y s t e m s o f m e d i c i n e , o f f i c i a l s o f G o v t . d e p a r t m e n t s , e m in e n t p e r s o n s i n t h e f i e l d o f Ayurveda, medical research etcMEDICINAL PLANTS CULTIVATIONThe pharmaceutical corporation functions as a nodal agency of the Govt. of
Kerala for the propagation o f medical plants cultivation. Land available in
factory premises is utilized for nursery development under NMPB fund, cultivation of
species like Ashokam (Saraca indica),Raktachandanam (Pterocarpus santalinus), Vilwam
(aegle marmelos), Amalaki (phyllanthusemblicus) and various projects from Kerala Forest
Department and KFRI. Land available atPariyaram, Kannur District is utilized for
cultivation of tree species and selected herbs andnursery development. Has held
discussions with Aralam farm authorities for leasing 100acres of land for medicinal
plants cultivation. Oushadhi Managing Director holds the chargeof Chief executive Officerfor State Medicinal Plants Board.
Objectives
To meet internal demand.
To establish demonstration garden of rare species and to preserve them from extinction.
To develop nursery of Medical plants, make them available even to small land ownerswhocan cultivate medicinal plants and thus increase their income.visionA Leading world class Ayurveda industry in the country by 2020.Core valuesMutual trust and respect.Customer satisfaction.
13Quality control.Professional ethics.
March with time.StrengthEstablished brand image.
Continuous government support.
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Huge market demand.
Dedicated work force.
Future plans
.
The future plans of the company include modernization of existing unit to improvequality
and to meet the modern market requirement.
Establishing branches in neighboring state to promote oushadhi.
Establishment of export oriented production unit for selected high demanded item.
Computerization of entire business.
Establishment of new processing and value addition units.
Strengthening of quality control and drug testing laboratory.
Development of new drugs in neutraceautical,cosmetic and baby product segments.
Promote medical plant cultivation and conservation.
Purchase of raw materials raised by farmers through oushadhi agents spread all over the
states through an effective buy back arrangement to encourage medicinal plantcultivation byfarmers.
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Newly launched products
Vigor Plus.
Oushadhi Cough Syrup.
Bliss balm.
Sudarsanam tablets.
Psorset oil and ointment.
Shaddharanam tabs.Products in pipeline
Hair die.
Herbal face pack.
Herbal shampoo.
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CHAPTER 2
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DESIGN OF THE STUDYThe information and data were collected from both primary and secondary sources.
19Primary sources
Direct interview with managers.
Direct interview with supervisors and workers.
Through direct observation.
Secondary sources
Published sources of the company.
Official websites of the company.
SIGNIFICANCE OF THE STUDY.
To get a practical experience of working of an organization.
Comparison of theoretical knowledge with practical knowledge.
To know about the application of management studies in an organization.
To know the strength and weakness of the organization.
SCOPE OF THE STUDYThe organization study covers the following aspects:
Present position of the company
Overall functioning of the company
Performance of the company
OBJECTIVES OF THE STUDY
The main objective of the study is to acquire knowledge about the organization structure.
To have a practical knowledge of the application of the management theories.
To know the role played by the company in the industry.
To know the profile of the company.
To study the different departments in the organization.
To study the techniques adopted by the company.
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To analyze the strength and weakness of the company.
To analyze issues of the company and give suggestions.
LIMITATION OF THE STUDY
As time was a major constraint, a research type in depth study could not be made.
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CHAPTER 3
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QUALITATIVE ANALYSIS OF THE COMPANYFINANCE DEPARTMENT.Finance i s the l i f eb lood o f eve ry bus ine s s . The ambi t ious p lan o f a
bus ine s s man wou ld rema in mere d reams
un le s s adequa te money i s ava i l ab le to conve r t them in to rea l i ty .F inanc ia l func t ion ca l l s fo r sk i l l fu l p lann ing and con t ro l o f va r ious f inanc ia l a
c t iv i t i e s .
22Finance department play a vital role for the smooth functioning of the
organization. Thisdepartment is involved in all the activities that take place in
the organization. Marketingdepartment and production department have to greatly
depend on finance department for theavailability of the fund. Financial controller is the head
of the department.Organization structure of the department.
graaaaaaaaaaaaaaaf
23
Finance functions deals with procurement of funds and effective utilization of the fund inthe betterment of the business. Control over expenses is ensured by comparing
actual expenseswith that of budgeted figures. By constantly monitoring various
operational activities
costc o n t r o l a n d c o s t r e d u c t i o n a r e f a c i l i t a t e d . A c c o u n t i n g f u n c t i
o n s i n v o l v e s d a y t o d a y accounting of several transactions relating to purchases,
inventories, production, sales,
other incom es , f i xed as se ts , sa la r i es and wages an d o th er exp enses su ch
as m an ufac tu r i n g , administration, selling and distribution.PREPARATION OF FINANCIAL STATEMENTOne o f the impor tan t r e spons ib i l i t i e s o f t he depa r tmen t i s the p repa ra t i
on o f f i nanc i a l statement in a periodic basis and the interpretation of this statement. Thisis quite helpful for the management in ensuring proper control over the performance of the
company and also toframe up appropriate policy frame works. The finance
department prepares the followingstatements
Profit and Loss Account
Fund Flow Statement
Budget
BOOKS OF ACCOUNTS MAINTAINED BY THE FIRM.
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Cash book
Bank book
Purchases book
Sales book
Journals
General ledger
Fixed assets ledger etc
CASH MANAGEMENT
24C a s h i s n e e d e d b y t h e f i r m t o m e e t i t s t r a n s a c t i o n s p r e c a u t i o n a ry a n d s p e c u l a t i n g requirements. The fund provided by the Government is managed
efficiently by the firm. For this a budget is prepared for the proposed requirements
of fund that will be needed by each department. The goals of the cash management are
To satisfy the day today business requirements
To provide for schedule major payments
To face unexpected cash drains.
To build image of credit worthiness
To build the reservoir for net cash.ALLOCATION OF FUNDS TO VARIOUS DEPARTMENTSFinance functions deals with procurement of funds and effective utilization of the fund in
the betterment of the business. Allocation of funds held in this mil l as per
requirements andavailability. All the funds are allocated to various departments
that is purchase department,store department, production department,
maintenance department, marketing department,and administration department.PAYMENT AND COLLECTION PROCEDURE
The payment and collection of money held in finance department. By constantlymonitoringvarious operational activities cost control and cost reduction are facilitated. The
major supplyof the organization is to government. For a public organization government will
provide fundif they had, and using the fund provided by the government medicines
are produced and amajor portion are sold to government. For sales to agency, cash and
carry system is followed.Credit sales are not allowed. As regarding to purchase of
raw materials, purchases are done by inviting tenders. Annual tender is invited
and a credit period of sixty days are al lowed if immediate payments are not
made. Likewise in the case of installation of machinery also.After installation and
commissioning the payment for machineries are made.
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MARKETING DEPARTMENT.Oushadhi is having a strong network of exclusive Oushadhi agents and dealers of about
600.These agencies are exclusive showrooms of oushadhi products. Distribution
centers have been opened in New Delhi, Mumbai, Pondichery etc for catering
outside Kerala
Marke t .Oushadhi i s the Pr inc ipa l suppl ie r o f Ayurvedic Medic ines to Gove rn me nt Ay ur ve di cHospitals and Dispensaries under Indian Systems of
Medicine (Kerala)as well as to someother I S M department of Madhyapradesh
Chattigarh,Rajasthan,Pondichery etc. also
theo rgan iza t ion Supp l ie s med ic ine to in s t i tu t ions
li ke Go vt .A yur ve da Col le ges , Men ta lHospital,Kottakal etc. Supply
of medicines to Government of Kerala Health
Care programsfor conta g ious d iseases . Ext ends s uppl i es to Centr a l G over
nm ent Hea l t h s chemes , ESIdispensaries, ministry of Labour & mining, Tribal
Welfare Department etc.organization structure of the department
.
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28
Continuous innovation of product
To sell the products through suitable distribution structure.
Pack and sale products in convenient pack and to use and store.
ADVERTISING POLICIES AND PROCEDURESOushadi has created a high brand image that they are not even able to meet the
cus tomer demand . The y s t i ck t o the po l ic y tha t A sa t i s f i ed cus tomer i s t
he be s t ad v er t i semen t . However to educate customers and make them aware
of new product, Oushadhi advertisetheir products through various Medias which
include:
Newspaper
Television channels
FM Radio
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Internet
Tradefair
Exhibition
Customer meet
Medical camp by agents.
Film adAdvertisement for the company is done through various agencies. For this
a paper is calledfor and agencies are invited. The company will interview the
representatives of the agencies.After interview the company will evaluate which
agency can effect ive ly sel l them. A to tal budget of one lakh is allocated for
advertisement. The various cost incurred are for
Payment to agencies
29
Payment to medias
To display Pop materials for purchaser
Shooting ad film etcDISTRIBUTION STRUCTUREDistribution structure involves the channel through which the products
are reaching in thehands of consumers. As Oushadhi is a Government organization, two by
third of the products produced are sold to the Government. The rest of the sales is done
through agencies. Oushadisale its products through six hundred and ten agencies across
Kerala and special outlets in theMetros all over India. These agencies helps the organization
For the forward flow of products from the company to the consumers.
Provide for the successive storage and movement of the product.
Helps for making orders and payments.SALES PROMOTION ACTIVITIESSales promotion activities are conducted to stimulate greater purchase of particular
products by the consumer. Oushadi is as patent producer of Ayurvedic medicine and has
created brandimage since the beginning. The company is having high demand for its products
and is notable to meet the exi sting demand. Hence they do not take too much
effort to promote thei r products. However, to meet the competition and at the time of
introduction of new products,they conduct promotional activity which include
Conducting exhibitions and Trade fair
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Providing free samples
Conducting free medical camp
Consumer contest etc.
30
Meetings, seminars & camps.MARKETING RESEARCHResearch activities are conducted for the introduction of new products. Oushadhi
conductresearch ac t iv i t ies to deve lo p medic i nes tha t can be used for
new deseases. The stepsinvolved while conducting a research include
Define the problem
Develop the research plan
Collect the information
Analyze the information
Present the findings
Making the decisionLar ge sc al e res ea rch act iv it ie s ar e con du ct ed by th e R
& D Oushadhi. If any epidemicshappen to spread all over state, oushadhithrough its research activities will come up withmedicines which can cure such
diseases.
HUMAN RESOURCE DEPARTMENT.
Human Resources and Administration department is one, which facilitates smoot
hworking of the organization by looking into the human resource side and also theoverall
administration of organization
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HR MISSION:
To create HR policies and processes which are employee friendly
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To build a culture which is warm forthcoming and professional with a senseof ownership &
pride.
To encourage innovative thinking.
To encourage transparency & teamwork.
To develop leaders at all levels with general management skills.
To create a learning organization.
To develop competencies & skills through training and development.
To constantly raise levels of employee productivity.
To work towards attaining & sustaining the best employer statusMAJOR FUNCTIONS:a ) R e c r u i t m e n t b ) S e l e c t i o n c ) T r a i n i n g d ) I n d u s t r i a l
R e l a t i o n s e ) W e l f a r e f ) S e c u r i t y a n d S a f e t y g) O t her
A d mi n i st r a ti v e a c ti v i ti e s h ) P e r f o r m a n c e
m a n a g e m e n t i ) E n f o r ce m e n t o f w o r k c u l t u r e .
Page no 34 graaaaaf
RECRUITMENT & SELECTION.Employees in the o rgan iza t ion a re rec ru i t ed a f t e r r ev iewing the
vacancy. Em pl oyees a re selected by the Public Service Commission. Candidates who
are eligible in the test are calledfor interview and based on thei r performance they are
selected. Some times vacancies mayarise in the organization and may need immediate
placement, in such situation employees areselected on temporary basics. Such
employees recruitment is done through advertising thevacancy. Recruitment and
selection include two phases. The first phase includes vacancyreview, after
finding out the vacant position, criteria for selection is formulated. Thensuchvacancies are advertised in Medias. After this a selection panel is organized.
The second phase includes short listing the applicant who matches the
requirement of the organization.Then these applicants are interviewed by the
panel members. After the completion of theinterview the candidates are evaluated.
Based on their performance they are selected.
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Recruitment and selection
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DISCIPLINE.Discipline is used to refer the act of imposing penalties for wrong behavior. If employees
failto observe the rules, they are meted out punishment. Any employee violating the
disciplineinthe o rgan iza t ion wi l l be g iven pun ishmen t . Pun i shmen ts a re ba sed on
t h e depth o f in disciplinary actions committed by the employee.I f an y em plo ye e
commi ts a mino r mis take he ha s to unde rgo sma l l pun i shmen ts
whichinclude:
Suspension,
Charging penalties,
Cutting down the benefits which are expected to receive in future.
Demotion.If the in disc iplinary action of the employee can not be
t ol er at ed , t he y ar e gi v en se ve r e punishments which include:
Dismissal
Restricting scope for promotion in carrier
Cutting down salary of the employee.
S e l e c t i n g p a n e l m e m b e r s S e l e c t i o n d e c i s i o n
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All these actions are taken by the M.D. If any employee notices any actions from
their co-workers side which are against the discipline of the company, they can
report to the
M.Dr e g a r d i n g s u c h a c t i o n . T h e y n e e d t o r e p o r t i t t o t h e i r s u p e r i
o r i n a w r i t t e n f o r m . I n disciplinary actions include not doing the assigned job not
respecting supervisors sleeping atworking hours , bribery, not war ring un iforms whil eat work , put in false signatures, leavewithout prior permissions , harassing others,
using drugs in the organization etc.Disciplinary rules of the organization include:
Employees should present in the organization at the correct time.
To ensure they are present at the correct time, punching system is followed.
I f a n y e m p l o y e e c o m e s l a t e f o r o n e h o u r h e c a n n o t j o i n t h e w o r
k w i t h o u t t h e permission of his supervisor.
If the employee continues to come late for more than three days his one day leave for that
month will be cancelled.
If employees absent themselves during the work hours after punching his attitude will be
considered as in disciplinary action.
Employees are asked to carry their identity cards in order to enter to the organization.
Any employee arrested or got imprisoned for any criminal offense for more than fortyeight
hours; he will be suspended for the time for which he was in the custody.
If he proves to be innocent, he can rejoin salary will be provided.
GRIEVANCE HANDLINGEvery employee has certain expectations which he thinks must be fulfill by
theorganization he is working for. When the organization fail to do this he develops a feeling
of discontent. When the employee feels that something is unfair in the organization he is said
toh a v e a g r i e v a n c e . I f a n y e m p l o y e e f e e l s s u c h , h e n e e d s t o r e p o
r t i t t o t h e i m m e d i a t e supervisor. If he is not taking any action within one
month or his actions are unsatisfactory,the employee can report it to the next higher
authority.The grievance if any should be passed through the following channel
TRAINING AND DEVELOPMENT
.
Training is the act of the increasing the knowledge and skills of an employee
fo r pe r fo rming pa r t i cu la r job . T ra in ing i s p rov ided fo r bo th manage rs
and workers, as bothinclude fresh and experienced hands. In Oushadhi
tra ining is provided under the cont rol of HR department to cater the needs of
employees. Both on the job and off- the job training
are provided to the employees . Employees a re asked to par t ic ipa te in th
e training programconducted by the outside trainers like
Kerala Institute of Local Administration (KILA)
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Information Management Group (IMG)
PF
TMA
National productivity council
Institute of Charted Accountant of India. Etc.
W o r k e r s
ForemanSupervisorManager
36The general topics of training include building positive attitude; performance
improvementetc. To ensures versatility of workers job rotation and apprentice
training are given to theemployees. The impact of training will be observed from the
performance of the employees.
36The general topics of training include building positive attitude; performance
improvementetc. To ensures versatility of workers job rotation and apprentice
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training are given to theemployees. The impact of training will be observed from the
performance of the employees.
PERFORMANCE APPRAISAL OF EMPLOYEES.Performance appraisal is done to evaluate how well an employee is performing his job in
theorganization. Based on this compensation decisions, decision on promotion of
employees,need for training and development of employees are decided.Performance is appraised onyearly basics and it will be graded as outstanding,
good, satisfactory & unsatisfactory. Theappraisal is done by top management. The
appraisal form is given to workers and are asked tofill in the details which include
name, job specification, target achieved by the employees,their difficulty in
achieving the target if any etc..
FINANCIAL AND NON FINANCIAL INCENTIVESOushadhi pharmaceuticals provide both financial and non financial benefits to the
employeesin order to retain them and to provide a satisfied work environment.Financial
incentives include:
Bonus,
Extra wages for meritorious performance,
Leave wages etc.
Honora r iums o f Rs1000 a re awarded to the employees who
have extra ordinarycaliber to perform job efficiently and effectively.The various non
financial incentives include:
Providing training facilities to the employees,
Giving suitable promotions to employees.
Employees are allowed to participate in managerial decision making,.
Family get together and
37
holiday trips are conducted by the organization
WELFARE FACILITIES.Welfare facilities are provided for better standard of living of the employees. The intramural
facilities include:
Rest shelters,
Uniform and protective clothing
Subsidized food
medical reimbursement,
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Canteen etc. The extramural facilities include:
transportation facilities
maternity benefits
Social insurance etc.
COMPENSATION PLAN.Sa la r i e s o f the employees a re pa id a s pe r paymen t o f Wages Ac t 1936 .
Salaries to the employees are paid at the end of every month. Special wages
are tothe employees
for s p e c i a l w o r k . P e r s o n a l s a l a r y i s p a i d o n a c c o u n t d e m o t i o n
g i v e n t o t h e e m p l o y e e s . Employees who have extra ordinary caliber are paid with
an honorarium of Rs 1000.
PRODUCTION DEPARTMENT.
38In every department production department plays a very important role. Like wise in
oushadhi pharmaceuticals also. The function of this department is to plan and control the
production of medicines . Product ion manager i s the head of this depar tment .
Oushadhi pharmaceut icals produce around 450 varieti es of medicines. The
functioning of this department has quality because of the supervision of experienced
doctors to supervise production. The production of medicines is as per GMP norms.
Strict quality control procedures are practiced to
ensurequa l i ty of raw mate r ia ls and f in ished produc ts . Modern dosage l ik
e o i n t ment , t ab l e t s , granules, and syrup are introduced.The objective of this department
is:
Achieving high production efficiency
Low costs
Mass distribution
Generl structure
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THE POWERS AND DUTIES OF PRODUCTION MANAGER
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Planning and implementation of production in the Factory on the basis of prefixedtargets.
Ensure that necessary documents, registers and records in relation to production are properly
maintained.
Ensure co-ordination between sections of production.
Maintenance of general discipline in the factory.
Deployment of workers suitably.
Observation of product/process related statutory requirements etc.
PRODUCTION PROCESSProduction process starts with the purchase of raw material. Raw materials
purchased are stored in the raw material stores. These materials needed for production are
collected from all over India. They are purchased after testing the qualityof ma te ri al. The mat er ia l wh ic h matches the pre- determined specifications
is purchased. Each doctors are provided with a raw material come issue note.
They will specify their requirements in the note. These raw materials purchased
are then transferred to pre processing unit. There these materials are transferred
into course powders for preparing medicines. These are then transferred
into processing units where the actual production takes place. These produced products are
then transferred to the quality control section and after checking the quality it is
transferred into prepared medicine stores. .
RECEIVING & PROCESSING ORDERS.As Oushadh i i s a Gove rnmen t unde r tak ing , eve ry yea r Gove rnmen t re le
a se fu nd in t he budget. Production is based on the basis of previous years demand. The th of the products are sold to Government. There is a raw material come issue note
provided to each department an d do ct or s. Th ey wi ll sp ec if y th ei r re qu ir em en ts
and based on this production is done. Usually order is received as per the
demand. Batch processing is done. The total order is
THE POWERS AND DUTIES OF PRODUCTION MANAGER
Planning and implementation of production in the Factory on the basis of prefixedtargets.
Ensure that necessary documents, registers and records in relation to production are properly
maintained.
Ensure co-ordination between sections of production.
Maintenance of general discipline in the factory.
Deployment of workers suitably.
Observation of product/process related statutory requirements etc.
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PRODUCTION PROCESSProduction process starts with the purchase of raw material. Raw materials
purchased arestored in the raw material stores. These materials needed for production are
collected from allov er In di a. The y a re pu rch as ed aft er te st in g t he qu ali ty of
ma te ri al . Th e mat er ia l wh ic h matches the pre- determined specifications is
purchased. Each doctors are provided with araw material come issue note. Theywill specify their requirements in the note. These rawmaterials purchased are
then transferred to pre processing unit. There these materials aretransferred into
course powders for preparing medicines. These are then transferred
into processing units where the actual production takes place. These produced products are
thentransferred to the quality control section and after checking the quality it is
transferred into prepared medicine stores. .
RECEIVING & PROCESSING ORDERS.As Oushadh i i s a Gove rnmen t unde r tak ing , eve ry yea r Gove rnmen t re le
a se fu nd in t he budget. Production is based on the basis of previous years demand. The
th of the productsare sold to Government. There is a raw material come issue note provided
to each departmentand doctors. They will specify their requirements andbased on this production is done.Usually order is received as per the
demand. Batch processing is done. The total order is
40divided into batches and. After production of each batch the quality is tested.
Based on theorder received production is carried out accordingly.
Eg of production process of kashayam:
INVENTORY MANAGEMENT.The Inventory Management system and the Inventory Control Process provides
informationto effic iently manage the f low of materia ls , effectively uti l ize
peop le and equ ipmen t ,
Raw materialsDisintegrationDrugboiler.Evaporating
pan.Addingpreservatives.certificationInprosessqualitycheck.Qualitycheck Qualitycheck Pac
king.
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40divided into batches and. After production of each batch the quality is tested.
Based on theorder received production is carried out accordingly.
Eg of production process of kashayam:
INVENTORY MANAGEMENT.The Inventory Management system and the Inventory Control Process provides
informationto effic iently manage the f low of materia ls , effectively uti l ize
peop le and equ ipmen t ,
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Raw materialsDisintegrationDrugboiler.Evaporating
pan.Addingpreservatives.certificationInprosessqualitycheck.Qualitycheck Qualitycheck Pac
king.
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41coordinate internal activities, and communicate with customers. Inventory Management
andthe activities of Inventory Control do not make decisions or manage operations; they
providethe information to Managers who make more accurate and timely
decisions to manage their operations. The basic building blocks for the Inventory
Management system and InventoryControl activities are:1. Sales Forecasting or Demand
Management2. Sales and Operations Planning3. Production Planning4. Material
Requirements Planning5. Inventory Reduction
PRODUCTION PLANNING
Production planning is the process of producing a specification or chart of themanufacturingoperations to be performed by different departments over a particular time
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period. Productionscheduling takes account of factors such as the avail abili ty of
plant and materials, customer delivery requirements, and maintenance schedules.
Production plan is prepared as per
thedemand rece ived . A ba tch manufac tu r ing reco rd i s ma in t a ined by the
department. Thematerials required for each bottle of medicines, and also the
quantity needed is specified.Using this total quantity to be produced is calculated andproduction is done on the basics of this information.
Steps in production planning:1. Production planning Verify the annual production demand from marketing section
Convert the annual production demand to batch wise report monthly, weekly, daily Reply to
marketing section I f t h e ac tu a l p ro d u c t io n p lan i s sa t i s fac to ry to th e
ma rke t ing depa r tmen t , i t i s s end to purchase Production target & achievement
details of each section.2. Allocation of man power for each section
Steps in production planning
1.Production planning
Verify the annual production demand from marketing section
Convert the annual production demand to batch wise report monthly, weekly, daily
Reply to marketing section
I f t h e a c t u a l p r o d u c t i o n p l a n i s s a t i s f a c t o r y t o t h e m a r k e t i n g
d e p a r t m e n t , i t i s s e n d t o purchase Production target & achievement details
of each section.
A b s e n t e e i s m o f m a n p o w e r i n e a c h s e c t i o n a n d a l l o c a t i o n o f
reserved man power toconcerned section
2. Allocation of man power for each section
3. Product creation
Check infrastructure availability
Develop raw material indent for a product
Fill in the batch manufacturing record
Record quality checking details
Details of Daily packing (quantity packed, pending, reasons for delay in packing)
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Complete the BMR return to QC lab4. Medicine transfers
Prepare medicine transfer statement