os geon air

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An organization study of GEON AIR air-condition & Refrigeration Manufacture (P) Ltd

CHAPTER I

INTRODUCTION

Jai Bharath School of management studies

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INTRODUCTION

Organizations play a vital role in the development of any economy. With the

growth of industries, the economy will prosper and generates more employment and

opportunities. In an organization there is group of individuals who work together to

achieve a common goal. It refers to the structure of relationships among positions and jobs

built up for realizing common objectives. It assembles the four Ms of management i.e.

men, machine, material and money.

In sociology "organization" is understood as planned, coordinated and purposeful

action of human beings to construct or compile a common tangible or intangible product.

This action is usually framed by formal membership and form (institutional rules).

Sociology distinguishes the term organization into planned formal and unplanned informal

(i.e. spontaneously formed) organizations. Sociology analyzes organizations in the first

line from an institutional perspective. In this sense, organization is a permanent

arrangement of elements. These elements and their actions are determined by rules so that

a certain task can be fulfilled through a system of coordinated division of labor.

An organization is defined by the elements that are part of it (who belongs to the

organization and who does not), its communication (which elements communicate and

how do they communicate), its autonomy (Max Weber termed autonomy in this

context: Autocephaly)(which changes are executed autonomously by the

Organization or its elements) and its rules of action compared to outside events

(what causes an organization to act as a collective actor?).

By coordinated and planned cooperation of the elements, the organization is able

to solve tasks that lie beyond the abilities of the single elements. The price paid by the

elements is the limitation of the degrees of freedom of the elements.

Advantages of organizations are enhancement (more of the same), addition

(combination of different features), and extension. Disadvantages can be inertness

(through co-ordination) and loss of interaction.


http://en.wikipedia.org/wiki/Interaction

http://en.wikipedia.org/wiki/Degree_of_freedom

http://en.wikipedia.org/wiki/Autocephaly

http://en.wikipedia.org/wiki/Max_Weber

http://en.wikipedia.org/wiki/Communication

http://en.wikipedia.org/wiki/Labor_division

http://en.wikipedia.org/wiki/Product_(business)

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Geon air is a private undertaking company. Its owned sharja based Geo group. It

mainly produces Water chillers and air conditioners. Major part of the production for

exporting. The 50% of the total production sell in Kerala.

NEED OF THE STUDY

To get a clear idea about the entire functioning of the organization, this study is very

important. This study provides an overall idea about the functioning of an organization. It

helps to understand requisites for smooth running of a production unit. It helps us to

inculcate professional mannerisms in dealing official matters.

OBJECTIVES

The organizational study is to familiarize ourselves with the working of

various departments for a particular period, so that one can have an exposure to

the practical side.

Primary objectives:

To know about the organizational structure of the company.

To give suggestions and recommendations on the basis of analysis under the

study.

To know the functioning of various Departments in short.

Secondary objectives:

To understand the work relationship with technology and organization by

studying practice.

To gain hand experience from the industry.

To make assessment of the organization in the Industry.

SCOPE OF THE STUDY

The scope of the study covers all functional areas of each department in the

organization. The study is useful in assessing quality and performance of the company.

This study may help the management to identify the strengths and weakness of the

organization, and also help to find out areas where the organization should improve.


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The student shall get familiarized with the structure, systems, procedures and

functioning of an organization.

The student shall encounter practical situations which require immediate trouble,

serous concepts and theories in to practice.

The student can indulge in a fresh and novel approach to a problem which may

not be the case the personnel already employed in the firm as they already6 tend

to have an intelligible platform on an issue.

Student can come out with unbiased and impartial suggestions and

recommendations.

By permitting this type of study the industry academic tie up is strengthened.

METHODOLOGY

Primary data:

Primary data are those data collected directly from the organization. It is fresh

information collected by the direct interaction with the workers and discussion with the

managers and other staff in the organization

Secondary data:

Secondary data are those data collected by others. Data collected from business

journals, magazines, quality manuals, websites, brochures and annual reports of the

organizations.

The main sources of data are as follows;

Direct interaction with managers of different departments

Personal visit to the plant

Official records

Organizational manuals

Department manual

Various journal, newspaper and magazines

Data from internet

LIMITATION OF THE STUDY


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An in-depth study of the entire employees of the company cannot be carried out

due to the shortage of time.

It is limited to the information supplied by the Department Head and the

information collected by the standing order and settlement copies of the

company.

The data were collected when respondents were engaged in work. So various

situational factors might have influenced while collecting the data.


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Chapter II


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Geo Group profile

Geo Electrical Trading and Contracting Company LLC,is parent company in

Sharjah (UAE),promoted by Mr. George V.Nereaparambil, their present Chairman and

Managing Director is primarily engaged in the trading, contracting and rentals of air-

conditioning and power generating equipmentsin Middle Eastfor the past 33 years.Geo

Group, the pioneers in cooling and power solutions in UAE, have 80000 tons air –

conditioning equipments to its credit ,ranging from air & water cooled chillers, package

units,ductable splits and the world class, power saving Geon air split air-conditioners for

residential and commercial air –conditioning.

Geo has full-fledged engineering factory In Sharjah to conduct periodical

maintenance, custom modifications on units for special requirements, and to repair of the

units.

Today, Geo Group is proud to be part of Dubai Metro for successfully providing the

sophisticated air conditioning solutions for the world’s most advanced metro rail system

commissioned by RTA Dubai on 09.09.09.

Geon-air profile

Geo has manifold business operations in India also. It includes Geon air Air

conditioner Manufacture Company at Kinfra Industrial park where AC units and domestic

and industrial water chillers ranging from 1 ton to 110 ton are assembled and exported.

This is an Export Oriented Unit (EOU) located in the KINFRA PARK Kakkanad

Kochi, Kerala INDIA. The facility at Kochi is having 40, 000 Sq Ft floor space which is

utilized for manufacture of various HVAC products. We have full-fledged team of

qualified engineers and technical staff in the air-conditioning and electrical divisions to

carry out large project on turnkey basis. We have consistently provided clients with timely

and high value service competitively priced without compromising the quality.

Geon air’s manufacturing facility at Cochin has got the permission for selling

products in the domestic market under DTA sales permitted by Customs Dept. They have

a wide range (2 to 30 tons) of Ductable split units, Floor Mounted Packaged Units


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&Unitary type self contained packaged air conditioners. These are ideally suitable for

installation in applications such as Hotels, Banks, Hospitals, Office premises, shopping /

commercial complexes, restaurants, Retail outlets etc. Geo General Trading Company

[GGT], another subsidiary of Geo Group in India focuses on the trading of Geon air room

air conditioners in India through dealer net works. Geon air split units widely installed In

UAE are now available in India at attractive prices for both residential and commercial

uses.

Geon air also make HVAC products like Chillers, air handling units, precision air

handling units, fan coils, etc. they have a full-fledged team of engineers, supervisors, AC

Technicians and draftsmen working on the latest CAD software. In addition, we draw on

the resources of our offices abroad. All our offices in India and abroad are electronically

connected. We also undertake Centralized AC plants/VRF system on turnkey basis and

rental AC services for event management programs, ship, submarine, airacraft,

audirtoriumetc with our imported specially designed mobile ac units.

Completed Major projects:

1) FCRI Palghat.2) Mermaid Hotel Kochi3) Abad Group of Hotels Kochi.4) Hotel Hill view5) Shanthimadom Builders Guruvayoor.6) Cochin Gymkhana Club7) KochinAryaVydyasala8) Alindmannar9) Visa International

Major projects undertaken In Kerala

1) Lake palace Resort Alleppey2) Alleppey Town hall3) Hotel Paulson Park Kochi4) Queens Residency Kochi


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Market share

Equity including foreign investment

US$(thousand)

Rupees (in lakhs)

Authorised 454.55 200Subscribed 454.55 200Paid up capital 454.55 200

Pattern of holding share in paid up capital

Rs $a Foreign holding 0 0b Non residentindian 200.00 454.55

repatriable 0 0.00Non- repatriable 200 454.55

c Resident holding 0 0.00d Total (a+b(i)+b(ii)+c) equity 200.00 454.55d External commercial borrowing 523.58 1189.95


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H.RManager

Work Supervisor

Finance manager

Marketing Manager

Chairman and M.D.

G.M, G.F.C

A.G.M production

Production ManagerMarketing Executive

H.R Executive

Finance Executive

Work men

Service Supervisor


Organisation Chart


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Chapter III

Department details


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HR DEPARTMENT


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Introduction

Human Resources are the most important element in an organization. The effective

utilization of all other resource depends upon the quality of human resources. Human

Resource Management may be defined as a set of policies, practices and programs

designed to maximize both personal and organizational goals.

In Geon air, HRD has a strong system in practice. There are 24 employees including

Managers, Executives, Technicians and staff.

Communication within department.

The communication of department are done through E-mail and Telephone.

Interdepartmental communication flow.

In Geon Air, communication between departments had done mainly through E-mail

and some special cases the communication done through telephone.

Information system

HR department on GEON AIR uses Microsoft Word and Microsoft Excel Software

for record the Details of the Employees.

Duties and Responsibilities of HR Manager

1. Responsible for the interpretation and application of the Staff Rules, regulations

and procedures ensuring uniform application in accordance with guidelines from

Headquarters.

2. Provides advice to staff members on specific entitlements, taking action locally as

appropriate, or submitting recommendations for exceptions to DHRM;

3. Ascertains human resource requirements for the office ensuring the timely

advertisement and filling of vacancies;

4. Participates in the selection of internal candidates and submits appropriate

recommendations; Interviews and tests new candidates, verifying educational

qualifications and previous employment record; Manages the advertisement and

filling of local vacancies, advising applicants on the nature of the responsibilities to

be performed as well as entitlements and career prospects;

5. Organises and supervises the functioning of a local APPC, as appropriate, ensuring

adherence to the policies and procedures specified in the relevant regulations;

6. Briefs newly arrived staff on related administrative formalities and ensures all

arrangements made for onward travel, if applicable; Supervises the prompt and


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efficient processing of documentation for the arrival and departure of international

staff;

7. Controls the maintenance of the personnel records in the office; Monitors the

follow-up of correspondence between each sub/field-office and Headquarters,

ensuring that outstanding queries receive a timely response, after due analysis.

Maintains and monitors leave records and requests for overtime.

8. Participates in the preparation of submissions for review by APPB and APPC (if no

local committee established) for the filling of vacant posts as well as for promotion

and the review of contractual status of staff members; Participates in the

preparation of ROR/IOR submissions;

9. Clears all payments related to personnel issues such as MSA/DSA/hazard pay/MIP

reimbursements/Medical Evacuations/travel and shipment costs etc. for Branch

Office and on behalf of sub/field-offices;

10. Provides support, guidance and training to personnel staff as required; Participates

in the review of training needs of staff making appropriate proposals to meet

identified needs; Participates in local salary surveys;

11. Represents the office individually or as part of a team in meetings concerning

personnel issues;

12. Negotiates staff complaints and maintains harmonious relations with local Staff

Council;

13. Performs other duties as required.


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PURCHASE DEPARTMENT


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Introduction

The main function of purchase department is purchase suitable material for

production and administrative department at lower price and high quality.

Purchase process

The Stores Department has to send the Material Intent (MI) to the Purchase

Department. After getting the MI, the Department will see whether it is approvable or not,

and after the valuation which is approved by M.D. After proper Vendor evaluation, the

purchase order is raised and the item is purchased.

After raising purchase order,company calls quotations. And select proper one on the

basis of price, quality and credibility of supply party.

Communication between departments.

The communication between production department and store department through E-

mail, and Telephone.


The communications of department are done through E-mail and Telephone.

Information System

Production department ofGEONAIR mainly uses the Microsoft Word and Microsoft

Excel software for maintain their record.


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PRODUCTION DEPARTMENT


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Introduction

Production management is the process of effective planning and regulating the

operations of that section of an enterprise which is responsible for the actual

transformation of materials into finished products.

Geonairhas recorded high productivity and profitability. Production department is

equipped with efficient and qualified managers and supervisors.

Production is the process of making products. Production is a process by which

goods and services are created. In production, different inputs like materials, human,

capital and other resources are transformed into higher valued goods and services. It is the

area responsible for turning inputs into finished outputs through a series of production.

The Production Manager is responsible for making sure that raw materials are provided

and made into finished goods.

Communication between departments.

The communication between production department and store department through E-

mail, Telephone and paper file.


The communications of department are done through E-mail and Telephone.

Information System

Production department of GEONAIR mainly uses the Microsoft Word and Microsoft

Excel software for their information system.

Duties and responsibilities

Manage/supervise production team.

Operates all production machinery.

Applies quality control for product.

Inspects and approves product.

Deliver and ensure the team delivers high standard customer service.

Deliver on-the-job training to staff on behalf of RTO to requisite AQTF standard.

Training staff in all duties set out in the Sales Training Manual.

Escalation point for disputes (staff and customer).

Gather and disseminate product information.


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Provides assistance and feedback for product research.

Maintain/establish paper based filing/records systems in accordance with set

procedures.

Assist HR Manager in recruitment.

Assist HR Manager in counselling and discipline.

Assist HR Manager in formal performance management.

Accurate reporting of team performance.

Develop and nurture team performance.

Maintain focus and discipline in the team.

Achieve agreed team and individual targets.

Conduct team meetings.

Set and maintain high personal standards for the team to attain to.

Diagnose motivational problems.

Assign task roles.

Co-ordinate administrative duties (eg. Time sheets, faxes).

Records maintained

Production report


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Markrting Department


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Introduction

Marketing implies the performance of business activities that direct the flow of

service from producers to customers. It holds the key to achieve its organizational goals.

Marketing is the process of planning and executing the conception and pricing

information, and distribution of ideas, goods and services to create exchange that satisfy

Individual and organizational goal.

Marketing department is concerned with the marketing efforts of the final Products.

It is one of the most important functions of management. Market oriented thinking

necessary in today's competitive world.

Some companies are trying to expand the size 0 the market, but most are;

competing to enlarge their shares of the existing market. As a result, there are winners

mad losers.

Marketing is the process by which goods are available to the consumers. Thus, the

snoods produced are to be stored and transported from place of production to the place of;

Consumption. It is the responsibility of marketing department to give information about

the products to the consumers. Therefore, all activities connected with transfer of goods

from the factory to the consumers come within the preview of marketing.






Information system




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Duties and responsibilities

Sales analysis. Quality controls. Budgets. Ratio analysis. Marketing research. Marketing information systems (MkIS). Feedback from customers satisfaction surveys. Cash flow statements. Customer Relationship Management (CRM) systems. Sales per thousand customers, per factory, by segment. Location of buyers and potential buyers. Activities of competitors to aspects of your plan. Distributor support. Performance of any promotional activities. Market reaction/acceptance to pricing polices. Service levels.


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Finance Department


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Introduction

Financial management is the managerial activity which is concerned with the

planning and controlling of firms financial resources. It is applicable to every

organization.

Managing the accounts of the company is the inevitable. During the life of business

enterprise, there are accounting events that receive considerable attention. An issue of

ordinary share is an example. By concentrating discernible financial events, discussions

on finance of an enterprise have tended to look at the raising and deployment of finance.

Funds required for running the business raised to a combination of direct revenue from

sales, loans from banks, sale of securities and bonds, private borrowing etc. Funds raised

as above are deployed among competing the uses within the enterprise's activities.






Information system



Responsibilities of Finance Manager

Financial planning.

Rising of necessary funds.

Planning and allocation of funds to proper place at proper time.

Controlling overall activities of finance department.

Controlling the use of funds.

Tax planning.

Internal audit.

Giving instructions to chief accountants regarding the financial

Matters.

Checking the financial statements.


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Profit planning.


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Chapter IV

Functional Activities


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HUMAN RESOURCE

MANAGEMENT


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1. HUMAN RESOURCE PLANNING:

Human Resource Planning includes job analysis, job design, job description and job

specification.

1.1. Job Analysis:

Job Analysis may be understood as a process of collecting information about a job in

this company. It is useful for several purposes such as personnel planning, performance

appraisal and the like.

1.2. Job Description & Job Specification:

Job Description is a statement containing items such as job title, location, job

summary, and duties of employees, machines, working conditions, tools and equipments

used in this company.

Job Specification is another statement of human qualifications possessed by

employees and employers in the company necessary to do their job.

1.3. Job Design:

The logical sequence to job analysis is job design. Job design involves conscious

efforts of both employers and employees in the company to organize tasks, duties and

responsibilities in to a unit of work to achieve certain objectives.

2. RECRUITMENT AND SELECTION

Recruitment is the process of searching for and obtaining applicants for jobs. By

recruitment, right persons can be selected and can find capable applicants for employment.

The result of recruitment is a pool of applicants from which new employees are selected.

The recruitment is made through advertisement in leading newspaper and eligible

candidates are appointed in different units. Secretary, Joint Secretary and Department

Head is carrying out the interview.


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Selection is the process of differentiating between applicants in order to identify and

hire those with a greater likelihood of success in a job while recruitment refers to the

process of identifying and encouraging prospective for apply for job, selection is

concerned with picking the right candidates from a pool of applicants.

3. PLACEMENT

Placement is based on the experience in the case of experienced employee or staff.

But in the case of fresher’s the Company analyse candidate in the time of 3 months’

probation.

4. TRAINING AND DEVELOPMENT

The company provides training to every worker before he or she is posted as a

permanent employees. But training is not given to all office staff.

5. PROMOTION

It is based on the promotion policy agreement; it’s strictly based on the seniority of

service. If there is vacancy in higher post, then promote to the higher post otherwise give

the higher grade scale.

6. WAGE AND SALARY ADMINISTRATION

Wages and salary administration includes job evaluation, constituents of salary,

incentives and benefits.

6.1. Job Evaluation:

Job evaluation involves the determination of relative worth of each job for the

purpose of establishing wage and salary differentiations exist in GEON AIR.

6.2. Constituents of salary.

Salary is paid monthly which is inductive of various allowances applicable to

each grade. Increments are given annually based on the performance appraisal done at the

end of every financial year.

6.3. Incentives and benefits.


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The main aim of incentive is providing value for money and contributing to original

success. Fringe benefits refer to extra benefit provided by employer to employee in

addition to wage and salary.

Incentives are mainly classified in to three broad categories:

Monetary incentives - Monetary incentives may be based on individual or group

performance and exert a significant impact on personal motivation in the company.

These incentives forms visible and tangible reward provided in recognition of

accomplishment.

Non-monetary incentives – They are generally introduced as a normal practice in

good management to elicit from employees a sense of participation and belonging

and their performance being not to be under estimated. Types of non-monetary

incentives include health and safety, general welfare, educational training,

recreation facilities, family planning etc.

7. PERFORMANCE APPRAISAL

The purpose is to evaluate the performance of each employee during the previous

years and to identify the training required for further improvement on the performance

appraisal form. At the end of training and probation period the employee’s performance is

evaluated. Overall performance found to be good he or she is placed in probation or

confirmation and is communicated in writing. If the performance in training is found

unsatisfactory further improvement training is required and probation is extended by the

GM-HR and administration in verbal consultation with the department head and is

communicated to the employee by a training and probation extension letter

8. HEALTH AND SAFETY

Under this plan, the workers are provided with free medical services. They are also

given medicines at free of cost.

For safety measures company provides shoes and socks once in one year for the

relevant workers, uniform cloths to the workers once in two years; goggles (protective

glass) are provided to the welders and furnace workers

9. WELFARE MEASURES


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Free canteen facility

First Aid

Drinking water facility

Rest room

Uniform for employees

washing facilities

Medical check-up

parking facility

protective glass

10. EMPLOYEE GRIEVANCE

Department heads directly handle if any grievances exit and they follow HR rules strictly.

If any grievance there, should be settled through grievance procedures. Grievance

redressal by direct intervention and or through department heads.

11. TRADE UNION

Geon air is located in the special industrial area. Trades-unions activates are strictly

prohibited by law in this industrial zone.


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MARKETING MANAGEMENT


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1. ANALYSIS OF ENVIRONMENT

The mainly affected environment analysis factor is recession. But now the sale of

Air conditioner is boom because of the summer season.

2. MARKET RESEARCH.

In depth market research, strong and effective strategies of GEONAIR marketing wing

ensure that our target customers ardently identify the group's brands with high quality,

reliable technology and value for money.

Coupled with the efforts of GEONAIR’s dynamic, professional sales team that

understands the product and how it addresses key customer needs. Geo group has become

a market force to reckon with. State of the art production line and service facility with an

excellent infrastructure and qualified technical staff the company's strong commitment to

the satisfaction of the end-user.

3. MARKET INFORMATION SYSTEM (MKIS)

Marketing Information System is almost same as Management Information System.

The market information system is conducted at product wise and various contributions are

accepted.

The important criteria for conducting market information system are:

Product wise

Price wise

Review wise

Capacity wise.

4. SEGMENTING, TARGETING AND POSITIONING

The base of product segment is capacity of the product (on the basis ton).

5. DISTRIBUTION STRATEGY:

5.1. Wholesaling:


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GEONAIR air-condition and refrigeration manufacture (P) Ltd. Company is

an exporting company. But as per the Government rule, an exporting company standing in

the Special industrial area. They have a right to sell fifty percentage of their previous year

exporting in the country. But that sale is done by Geon general trading company.

5.2. Sales force strategy:

Sales force strategy existed in GEON AIR is only one man show. The marketing

manager collects data from the dealers.

6. PRICING STRATEGY

Being refrigerator product, price is depends upon the capacity. Price will be

varying according to the capacity of the product.

The main factors affecting pricing strategy are:

Raw material

Cost of currency


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OPERATIONSMANAGEMENT


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Sheet metal fabrication

area.

Unit in the dismantling

line

Dismantling condensing

Unit

Dismantling Compressor

Dismantling shell & Tube

Fixing Shell new

Fixing condenser

Fixing compressor

PipingPressure

charging & testing

VacuumCharging of R-

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TestingPump down R-22, Charging

N2Packing Ware housing


1. PRODUCTION CAPACITY

GEON AIR airCondition& Refrigeration Manufacture (P) Ltd. Produces only four

products now. The production capacity of each product are

Sl no Item description Capacity(In Unit)

1 Domestic chillers/package unit 1 ton to 300 tone. 36002 A/C window unit. (1 Ton To 2.5 ton) 44003 Split A/C unit 0.75 ton to 5 ton 57004 D.G set upto 1500 KVA 50

2. PLANT LAYOUT


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3. Operation Planning and scheduling

Geon air is a Sharja based country major portion of the production for the parent

company. And the main product is Water chillers, it is high expensive product so the

company produce it only as per the order.

4. Inventory management and control

5. Supply chain management

a. Logistics:- Geon air logistics is mainly through containers

b. Warehousing:- The warehouse is situated near to the production area.

Because the production unit is near to Cochin, form the ware house to

shipping yard very little distance.

6. Quality Management

The products are produced as per international standards. The Customers of the

product is International companies Like American Shipping Company. UAE shipping etc.

So the Quality of the products is assured.


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FINANCIAL MANAGEMENT


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1. Capital Structure

Equity including foreign investment

Pattern of holding share in paid up capital

Rs $a Foreign holding 0 0b Non residentindian 200.00 454.55

repatriable 0 0.00Non- repatriable 200 454.55

c Resident holding 0 0.00d Total (a+b(i)+b(ii)+c) equity 200.00 454.55d External commercial borrowing 523.58 1189.95


US$(thousand) Rupees (in lakhs)

Authorised 454.55 200Subscribed 454.55 200Paid up capital 454.55 200

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Chapter V

SWOT ANALYSIS


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The SWOT analysis includes the evaluation of the company’s strength, weakness,

opportunity and threats. It involves monitoring the internal and external environment of

the company.

STRENGTHS

Dynamic & Progressive Leadership.

Responsive to changes in market conditions and product profiles.

Product innovation and technical superiority.

Higher consumer satisfaction.

continuous development and innovation in products

It has well developed quality control system

World class quality for the product

Hardworking employers and employees

Good customer relation

Good After sales service.

Situated in the most cosmopolitan city, Kochi.

Strong R&D

WEAKNESS

No presence/little retail market.

Less direct contact with the end customers.

There is no ERP system

Advertising is very low

Lack of employees in different departments

OPPORTUNITIES

Access to global sources for raw materials at competitive prices due to economies

of scale.

More scope on Domestic market.


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Increasing import and export due to globalization.

The demand for the Air conditioner were increasing day by day because, the

change in climate causes the increasing heat.

World market open

Scope for Innovation and R&D

T HREATS

High expectations of labour in terms of compensation or welfare measure.

Seasonal variation may affect the demand of the product.

Depend only on major customers

Increase in price of raw materials

Changing policy of customs.


os geon air

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