Parag Report

SUMMER TRAINING PROJECT REPORT
ON
LEVEL OF EMPLOYEE SATISFACTION

IN
PARAG (LUCKNOW MILK PRODUCERS CO-OPERATIVE UNION)
Management Research Project -I

Submitted
In the partial fulfillment of the Degree of
Master of Business Administration Semester-III
Under the guidance of: Submitted by:

Mr. Manish Chaudhary Hesamuddin
(Marketing Head) M.B.A III Sem.
Roll No.: 162110018
DECLARATION
We hereby declare that the work incorporated in this report entitled “LEVEL OF
EMPLOYEE SATISFACTION IN PARAG (LUCKNOW MILK PRODUCERS CO-
OPERATIVE UNION).” in partial fulfillment of the requirements for the award of Master of
Business Administration (Semester - III) is the outcome of original study undertaken by us
and it has not been submitted earlier to any other University or Institution for the award of any
Degree or Diploma.
HESHMUDDIN
Roll no. -162110018
M.B.A. 3rd semester
Date: 10/07/2017
Place: LUCKNOW
CERTIFICATE
ACKNOWLEDGEMENT
Every work constitutes / comprises a great deal of and helpful assistance from various
concerned people and this particular project is no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement
and help.
Wish to place on record my sincere gratitude to my project guide Mr. Manish
Chaudhary, Marketing Head, Parag Lucknow for their support during the training. I
thank all of them for constructive help and encouragement throughout the project. Without
their support and guidance, the assignment would not have been possible.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by
my family members.
I’m also thankful to my friend who provided me their constant and assistance.
PREFACE
In this Project I have studied “LEVEL OF EMPLOYEE SATISFACTION IN PARAG
(LUCKNOW MILK PRODUCERS CO-OPERATIVE UNION).” Managing human
resources in today’s dynamic environment is becoming more and more complex as well as
important. Recognition of people as a valuable resource in the organization leads the
increasing trend of employee maintenance, job security, etc.
Better working conditions are essential to the region's economic and social progress. Many of
the policies made have a bearing on our employment, working, and living conditions,
"Hence, the voice of working men and women needs to be heard while formulating a policy."
The workers are lobbying for policies that promote employment, good working conditions,
labor standards, transparency, accountability, and participation. My research project deals
with “LEVEL OF EMPLOYEE SATISFACTION IN PARAG (LUCKNOW MILK
PRODUCERS CO-OPERATIVE UNION) In this report, I have studied & evaluated that; Are
employees satisfied with their job or not? The primary objective so far understood behind the
summer training is to compliment the university teaching with practical orientation and
exposure to industrial plants. The need for such training lies behind the necessity of
influencing a sense of professionalism in the budding professionals of tomorrow.
It is mandatory for every student of “Master of Business Administration” from institute of
“DSMNRU, LUCKNOW” to undergo summer training at organization location with a project
on live problem. I was thus assigned summer training at PARAG (Lucknow Producer’s Co-
Operative Milk Union Ltd.), for 7 weeks.
My training has been a fruitful experience for me. Now I have a broad idea of the functioning
of organization and this will be very help full for me in the coming days.
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TABLE OF CONTENT
Sr. No. Topic Page
No.
DECLEARATION
CERTIFICATE
ACKNOWLEDGEMENT
PREFACE
1 INTRODUCTION 8-11
 INTRODUCTION OF THE EMPLOYEE 8

SATISFACTION
 OBJECTIVE OF STUDY 8
 SCOPE OF STDY 9
2 REVIEW LITERATURE 12-12
3 RESEARCH METHODOLOGY 13-15
 IDENTIFICATION OF A PROBLEM 13
 RESEARCH OBJECTIVE 13
 DATA COLLECTION TECHNIQUES 14
 RESEARCH DESIGN 15
4 COMPANY PROFILE 16-75
 INTRODUCTION OF THE COMPANY 17
 HISTORY OF THE ORGANISATION 24
 ORGANISATION STRUCTURE 40
 PRODUCT AND SERVICES OFFRERED BY THE 46

ORGANISATION
 H.R. POLICIES 61
5 DATA ANALYSIS AND INTEREPRETATION 75-103
6
6 FINDINGS 104-106
7 CONCLUSION 107-107
8 SUGGESTIONS AND SCOPE FOR FUTURE RESEARCH 108-108
 SUGGESTIONS 108
 SCOPE FOR FUTURE RESEARCH 108
* BIBLIOGRAPHY 109-109
* ANNEXURE 110-112
7
(1) INTRODUCTION
Introduction Employee Satisfaction:
Employee satisfaction is essential to the success of any business. A high rate of employee
contentedness is directly related to a lower turnover rate. Thus, keeping employees’ satisfied
with their careers should be a major priority for every employer. While this is a well-known
fact in management practices, economic downturns like the current one seem to cause
employers to ignore it. There are numerous reasons why employees can become discouraged
with their jobs and resign, including high stress, lack of communication within the company,
or limited opportunity for growth. Management should actively seek to improve these factors
if they hope to lower their turnover rate. Even in an economic downturn, turnover is an
expense best avoided.
Objectives of the study:
The main objective of my study is to check the level of employee satisfaction in Parag
milk union, Lucknow and to know its positive or negative impact on the working of dairy, in
order to complete my M.B.A. research.
If I find any amount of dissatisfaction form employees’ side, I will try best in order to
forward those points of dissatisfaction to the authority concerned, so that they can take the
necessary actions in order to remove the maximum points of dissatisfaction of the employees.
This positive action will definitely improve the level of employee satisfaction and their
productivity too, which is always the main objective of any organization and lead to the
growth of the company.
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 To identify the values that support creativity and innovation in the organization.
 To focus on knowing trust relationship among the employees.
 To give feasible suggestion regarding improvement of employee satisfaction at all
level in organization.
 To know the welfare measures and living environment provided for the employees.
 To identify the conditions in which the individuals are most like to use intuition in
decision-making.
Scope of the study:
In the survey an attempt has been made to analyze the job satisfaction of employees of Parag
Lucknow.
The study tries to understand the level of satisfaction among the employee of Parag Lucknow.
It further explains the area on which employees are mostly dissatisfied. Job satisfaction of the
employees has been analyzed on the basis of the following job related factors:
 Salary and monetary benefits
 Job security
 Promotion policy
 Employees participation in management
 Employee retrenchment
 Employee separations policies
 Nature of job
 Freedom of expressions
 Superior and sub-ordinate relations
 Medical facilities and employee insurance policy
 Retirement policy etc.
The sources and effect of stress:
Stress is one of the leading causes of employees’ discontentment with their job. Branham
(2005) asserts that, “it seems clear that one quarter to one half of all workers are feeling some
level of dissatisfaction due to stress, which is undoubtedly having a negative impact on their
productivity and the probability that will stay with their employers”.
Factors causing stress:

 Organizational stressors
 Individual stressors
 Group stressors
 Extra organizational stressors
Stress can have many causes, including when company do not supply the tools necessary to
produce or work efficiency while on the job. This producer higher stress levels because these
workers are expected to perform at certain rates, yet they are unable to do so.
9
Another source of stress is the now common practice of employers which attempts to cut
costs by eliminating positions and disbursing the work load to other employees. The issue
that arises is that task will not be performed effectively or efficiently because the employees
became more concerns with having an overbearing workload, the efforts of these employees
failed to reach their own, or their employers’, standards. These actions and employee
responses to them, result in employees who attempt to finish incomplete work assignments
during personal time, such as lunch breaks, in an effort to keep their job. When a company
expects their employees to perform outside normal working hours, it detracts from those
employee’s relaxation time.
Harassment in any form may cause a new level of stress for the employee. It becomes
increasingly difficult to do a respectable job at work when one is consistently faced with an
uncomfortable working environment. These anxiety is caused by trying to avoid trouble some
confrontation and situations. Workers may agonize about the consequences they would face if
the harassment where to be reported, as well as the repercussion of not reporting it.
Why should an employer care?
It is important that employer about the happiness of their employees. Recent statistics show
that throughout their carriers, American workers hold an average of eight jobs (Rude
man,2003). The rate of turnover because employees are unhappy is alarming. Even is an
economy downturn, employers must spend an enormous amount of money recruiting new
employees, going through the hiring process and finally training new employees.
Dissatisfaction has many negative sides effects for the company, while satisfaction results in
a much better retention rate. The effects of these satisfaction that results in an employee’s
withdraw job and company can range from mild to saver. This withdraw behavior, when
evidence of these satisfaction, may end with an employee leaving the work place. Therefore,
withdrawal will lead either to the employee voluntarily leaving the organization or being
terminated for unprofessional behavior.
Happiness in the workplace leads to much higher levels of productivity it increases

employee moral; there for employees are more willing to work harder to improve the
company and its goals.
According to Branaham (2005),
“Gallup studies so that business with higher employees’ satisfaction also have:
 86% higher customer rating
 76% more success in lowering turnover
 70% higher profitability
 44% higher profitability
 78% better safety records.”
Companies need good, knowledgeable employee’s. if these employees are not treated fairly
they are going to take advantage of other job offers that will provide more stability, more
benefits and more compensation.
10
Sources of employee satisfaction:
 Job
 Salary and benefits
 Carrier development
 Supervision
 Working condition
 Team work
Conclusion
Management should have a positive effect on and seek to support the happiness of, the firm’s
employees. Reason for these are not solely to benefit the employees as companies also stand
to gain from employee satisfaction. In an economic environment like the current one,
employers often disregard the costs associated with unhappy employees, seemingly believing
that these employees are stuck in their current positions and will tolerate unpleasant working
environment. This, however, is not the case.
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(2) REVIEW LITERATURE
According to Nancy C. Morse (1997) “Satisfaction refers to the level of fulfilment of one’s
need, wants and desire. Satisfaction depends basically upon what an individual want from the
world, and what he gets”. Employee satisfaction is a measure of how happy workers are with
their job and working environment.
It is sure that there may be many factors affecting the organizational effectiveness and one of
them is the employee satisfaction. Effective organizations should have a culture that
encourages the employee satisfaction, Bhatti and Qureshi (2007)
Employee satisfaction is the terminology used to describe whether employees are happy,
contended and fulfilling their desires and needs at work. Many measures support that
employee satisfaction is a factor in employee motivation, employee goal achievement and
positive employee morale in work place.
According to Moyes, Shao and Newsome (2008), the employee satisfaction may be
described as how pleased an employee is with his or her position of employment.
As Spector (1997) defined job satisfaction as all the feelings that a given individual has
about his/her job and its various aspects. Employee satisfaction is a comprehensive them
that comprise job satisfaction of employees and their satisfaction overall with company
policies, company environment etc.
Employees are more loyal and productive when they are satisfied and these satisfied
employees affect the organizational productivity, Potter Field (1999).
There is no limit for the employees to reach the full satisfaction and it may vary from
employee to employee. Some time they need to change their behaviors in order to execute
their duties more effectively to gain greater job satisfaction, Miller, (2006).
Having good relationship with the colleagues, high salary, good working conditions, training
and education opportunities, career developments or any other benefits may be related with
the increasing of employee satisfaction.
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(3) RESEARCH METHODOLOGY
IDENTIFICATION OF A PROBLEM:
To estimate the level of satisfaction of employees regarding the job they are performing. The
study has been done under the Parag (Lucknow Producer’s Co-operative Milk Union Ltd.).
RESEARCH OBJECTIVES:
The main aim of is to analyze and examine level of employee satisfaction among the parag
(Lucknow Producer’s Co-operative milk Union Ltd.) employees and to know the problems
faced by the employees of the various categories.
The specific objectives are as follows:
 To observe the study level of satisfaction of employee and its impact on the job.
 To evaluate the working environment in parag Lucknow.
 To examine the satisfaction regarding salary, incentives and other benefits of its
employees.
 Other satisfactions of employees like leave, promotion, motivation interest, medical

facilities and behavior.
13
DATA COLLECTION TECHNIQUE:
All the data was collected through a structured questionnaire. Questionnaire contains 22
questions covering all the important parameters involved. 50 questionnaires were filled by
the employees of Parag Milk Factory, Lucknow.
DATA SOURCE
Source of data for research was Primary data collected through questionnaire and
secondary data which is collected by various books, magazines, websites and also some data
provided by my marking guide.
PRIMARY DATA
Primary data is gathered for the first time by the researcher for the specific purpose. In this
research report we collected primary data through questionnaire.
SECONDARY DATA
Secondary data here (where internal) is the data already collected by others, for purpose
other than the solution of the problem at hand. It includes those data, which are collected for
some earlier research work and are applicable or usable in the study. In this research we use
some data which are provided to us by our research guide as secondary data.
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RESEARCH INSTRUMENT Well-balanced questionnaire; using close and open-ended
multiple-choice questions.
METHOD OF APPROACH
Questionnaires are administered in direct personal interview.
RESEARCH DESIGN
For this research we make use of descriptive study. The research has been done through
structured questionnaire keeping in mind the objective of the study and Primary data analysis.
UNIVERSE
Universe selected for Research is Lucknow.
SAMPLE DESIGN
For this research we make use of stratified random Sampling.
SAMPLE SIZE
Sample size for the study was 50 respondents.
SAMPLE UNIT
The survey was carried out basically in Parag milk factory, 22 jopling road, Lucknow.
STATISTICAL TOOL TO BE USED

Statistical tools used were frequency counts, percentage, pie chart, bar graph, and doughnut.
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16
(4) COMPANY PROFILE
INTRODUCTION
Parag dairy (Lucknow milk union) came into being on 23rd march 1938 via registration
no.257.The capital invested was only Rs. 100/-and 220 liter of milk. Today 2lakh liter of milk
is handled in the co-operative production unit and its annual turnover is Rs.50 crores. Its
present share from state govt. is 2.21 crore and from committee is 52.60 lakh (95-96
BRIEF HISTORY_
Established : In the year 1938
Registration : 23rd march 1938
First dairy inspector : Mr. N.K. Bhargawa
Board of capital : state govt. of 90%, co-operative10%
Location : 22, Jopling Road, Lucknow.
Area of distribution : Initially Bakshi Ka Talab, Tewariganj and Gosaiganj
and presently the entire city.
In spite of several setback and hurdles, the co-operative has steadily progressed from
Strength. Operation flood - 2, which was implemented in utter Pradesh, in the year 1983-84
provided the much needed inputs to the co-operatives, for the past few year, Lucknow
Pradeshik co-operative Dairy Federation has mentioned.
17
P.C.D.F.- (HEAD OFFICE)
P.C.D.F. has 10 divisions. Every division has managers who are responsible to general
manager of that division. General Manager of every division is responsible to managing
director. The divisions of each division shall be responsible for achieving fixed target and
implementation of system for sorting the problems of unions.
All plans having ambition more than one year or those likely to have an impact on other
functional divisions well before, approval, implementation be routed through the
management service division (MSD), which will check, plan to see whether they are in
conformity with corporate objective, date and analysis for monitoring of performance in each
division shall be provided by the MSD, in each case any other information is required it can
be obtained by MSD.
The state government appoints the Managing Director of the organization.
He /She is of the rank of I.A.S Officer.
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THE ORIGINAL STRUCTURE OF LMU
The staff strength of Lucknow milk union (LMU) is approximately 450 employees
which can be divided in following categories: -
Class 1: General Manager : 1
Class 2: Managers : 31
Class 3: Subordinates : 183
Class 4: Lower Staff : 92 Approx.
Apart from this, thousands of people, i.e. society men’s, milk producers are Indirectly Related
to the milk union and further sub divisions also takes place.
19
DAIRY SCENARIO IN INDIA
Indian dairy is emerging as sunrise industry. India represent one of the world’s largest and
fast growing markets for milk and other products due to increasing disposable incomes
among 275 million middle class. The country is being changed after the end of 2000 A.D. as
the world’s number one in milk production. The reason being that, it is rural based, land
saving and gender natural composed to the drop production to offers more favorable
opportunities of employment. Dairy farming provides substantial source of the landless
labour as.
Dairy development in India has been acknowledged the world over as one of modern India’s
most successful developmental Programmer. India is the world’s largest producer of milk at
74 million tones; it is over three million tones in excess of what is produced in the U.S. The
per yield cattle in India is around three liters a day. Further, in the U.S. Nearly 70% of dairy
items produced are value added products and the balance is sold s milk. In India, the situation
is quite reverse.
Well as marginal farmer.
During the last 25 years, we have moved from a situation of scarcity and rationing of milk to
a scenario in which milk has been increasing at a rate faster than the rate of increasing of
population. There is large and rising domestic demand both for milk and
Milk products with an expanding middle income group, there exist a market for value added
products, especially in the cities and towns. There is also the possibility and covering surplus
20
into conventional milk products like casein is not only import to developed countries. Modern
scientific processing technology and marginal incursion are opening up best opportunities in
processing and marketing of various kind of value assess milk flavored, ice cream, cheese
and other delicacies.
The emerging consumption patterns present new challenges for the dairy industry. The
strategy is now shifting from distribution to sales and marketing extreme permissibility’s of
milk and possibilities of its contamination necessitate rapid movement of milk difficult.
Indian dairy market is multi layered shaped like pyramid with the base made up of vast
market for low cost milk. The narrow tip is small but affluent market for western type milk
products. Presently, rarely 782 out of 3700 cities and towns are served by its milk distribution
dispatching hygienically packed whole some quality of pasteurized milk.
Currently, consumption of liquid milk accounts for about 46% of the total production of milk.
The remaining 54% is utilized for conversion to milk products. Of this the, share of, the
organized sector is less than 10%. The production of milk product is increasing at the rate of
about 5% yearly. Among the products manufactured by the organized sector are ghee, butter,
cheese, ice creams, milk powders, malted milk food, condensed milk, infant foods etc. Of
these Ghee (Clarified Butter) alone accounts for 85%, industry has also introduced a number
of new products such as case in, lactose, dairy whiteners, different varieties of cheese etc. and
is exporting certain milk products
The manufacturing of milk product is concentrated in this milk surplus. The top six states viz
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujrat, Maharashtra, Andhra Pradesh, Karnataka,
Tamil Nadu , Together Account For 58% Of National Production
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About 75%Of Milk is consumed At the House hold Level, Which is not a Part of Commercial
dairy industry. Loose milk has a largest in India as it is perceived to be fresh by more
consumers. In reality, however, it poses a higher risk of adulteration and contamination.
Although milk production has grown at a fast pace during the last three decades (Courtesy
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are:-
 Lack of use of scientific practices in mulching.
 Inadequate availability of fodder in all seasons.
Of the three A’s of marketing ACCEPTIBILITY, AVAILABILITY and AFFORDABILITY,
Indian dairy is already with first two A’s. People in India love to drink milk. Hence, no effort
are needed to make it acceptable, its availability is not a limitation either because of ample
production. It leaves the third vital marketing factor AFFORDABILITY. How to make it
affordable for the majority with the limited purchasing power? This is the essence of the
challenge.
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THE ORGANIZATION - PRADESHIK CO-
OPERTIVE DAIRY FEDERATION
(PCDF)
Pradeshik Co-Operative Dairy Federation (PCDF) is the apex body for implementation of
the operation food plan in Uttar Pradesh. It works on the three -tier patterns. It collects milk
through village society processes at district level milk unions and markets the milk product
by state level federation under the Brand name PARAG PCDF bagged the first place in the
collection and marketing of milk in northern India region. Milk Collection rate of 8.65 lakhs
of liters per day in February 1995 and 7.67 lakhs of liters per day in March 1995 were the
highest recorded till date. An average sales figure of 4.58 lacks of liters per day was also
achieved for the same year. Pradeshik Co-Operative Dairy Federation (PCDF) was
established in the year 1962.The product line of PARAG includes Liquid milk, skimmed
milk powder (standard and extra grade), table butter, ghee (clarified butter), paneer,
milk cake, flavored milk, Peda, dairy whitener and infant milk food.
District level milk unions : 30
Number of Diary plants : 13
Capacity : 1510 liters per day
Gross value of quality : Rs. 11.45 Lacks
23
HISTORY OF PRADESHIK CO-OPERATIVE DAIRY
FEDERATION
The history of co-operative dairy industry in U.P. dates back to 1917, when the “Karta Co-
operative Milk Society “Allahabad was established. LMPU was established in 1938 as the first
step towards organized dairy development Program all over India. At the time of independence 4
milk supply schemes were operating in Lucknow, Allahabad and Varanasi and Kanpur cities. The
Agra co-operative dairy came into existence in the second five year plans, while the dairy of
Dehradun, Bareilly, Gorakhpur and Mathura were adopted later on.
The apex institute of dairy co-operative was registered under the name of ‘PCDF’ (Pradeshik
Co-operative Dairy Federation) in the year 1962 during the fourth five-year plan Aligarh,
Meerut and Haridwar were also proposed to be included in the scheme. The govt. of U.P. also
entrusted PCDF with the responsibility of implementing the operation flood I scheme in
1973. The main trust of operation flood-1 was to establish co-operative structure in some of
the best milk sheds located in ten states, UP being one of them.
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Operation flood 1, 2, 3 were started in UP with the following objectives:
 Removing the middle men between the producers and the customers by the
procurement of the milk directly through village co-operative society.
 To increase the production of milk from milking animals by providing inputs to the
producers.
 To arrange the supply of liquid milk in the major cities of UP.
 For carrying out the whole program successfully and for planning, implementation,
follow up and the maintenance etc. an effective organization structure has been
charted out.
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PARAG DAIRY-MARCH TOWARDS EXCELLENCE
Lucknow is the capital city of Uttar Pradesh. Total area of district is 2528 square km.91588
hectare is cultivated land. Wheat and rice are the main agriculture productions of district.69%
of farmers are small and medium level farmer who have about 1-acre land each. Lucknow
producers’ co-operative milk union limited, Lucknow (Parag dairy, Lucknow) was
established in India. Very few people know the fact that the process developed by Lucknow
milk union (LMU) was later used in spirit in Gujarat cooperative milk movement and is now
famous as” Annand Pattern”. LMU was then chosen as one of the model dairy to implement
operation flood program started by the National Dairy Development Board (NDDB) in
1970.Present handling capacity of plant is Rs. 1,50,000/-
The aim of LMU is to provide reasonable price to farmers thereby defending them from
exploitation of milk vendors and earn supplementary income apart from agriculture. On the
other hand the milk union supplies high quality pure milk and milk products at reasonable
prices to urban consumers under the brand name “PARAG”. The milk union has UPDASP
where milk producers have been educated in producing and supplying milk under clean and
hygienic conditions and provided the producers with semen of pure Indian breed for
improvement of present breed of animals.
LMU has set up of teams for “Quality Check and Health Awareness Programmed “for the
urban cons makers of milk. The teams visited different localities in city, tests their milk and
provides on the spot results to the consumers. The milk union also organizes school children’s
26
visit to its dairy plant to create awareness on milk processing and other related systems
amongst them. The milk union in its endeavor towards achieving excellence is in the process
of obtaining ISO & HACCP CERTIFICATION.
For coming months, LMU has committed itself to provide a minimum of 1, 20,000 liters of
high quality “PARAG “milk per day to the urban consumers. Apart from selling milk in
pouches, the milk union is also gearing itself to provide fresh loose milk to the city
consumers. Towards this end, the milk supply vehicles insulated with Japanese eco-friendly
standards have already been introduced in some areas of the city. All Time Milk Booths
(ATM) are being developed for supply of high quality milk to the consumers round the clock.
LMU is able to maintain high quality standards in its milk and milk products through close
monitoring of processes in all its stages of production, processing and packaging. The
constant increase in the sales figures of the milk union are a reflection of pour sincere efforts
and the growing confidence of the consumer in PARAG Milk Products.
The organization has a chain of around 2000 agents providing employment to the
unemployed youths. It is starting “Door to Door Milk Delivery System” through mini
insulated tanker through commission agents with attractive commission rates.
This system has already been started in Jankipuram, Cantonment, and Badshehnagar area and
is soon going to be extended to other areas of the city. The requirement of this system is to
have a mini insulated tanker for which one has to arrange finances up to Rs. 50, 000/- himself
and rest amount comes through bank finance.
The new milk products by milk union such as CHHENA KHEER, BESAN LADDOO
AND AROGYA VARDHAK CHHACHH(BUTTER MILK), have begun tickling the
taste buds of the consumers giving them great pleasure and value for money.
27
ABOUT ORGANISATION
Name – PARAG
Motion – Pure, Natural, Good and Healthy
28
P.C.D.F. AT A GLANCE
o PCDF was established 1962.
o In 1970-71 the PCDF took charge for the operation flood1st.
o In 1975, PCDF started “Sanker Prajnan” with economical Assistance of PPHC, Britain &
state government.
o In 1976, U.P. milk act was passed
o In 1979, the federation established at 20,000 liters daily handling.
o Dairy from faizabad, the cost of the project was 65.59 lacks
o In November 1982 operation flood 2nd project was launched for better supply of milk.
o In September 1987 operation flood2nd project ended and flood 3rd project was started.
This project was laid down on the guidelines of dairy development board.
29
o Parag SURUCHI was launched in the market in 1993-94.On 15th august 1993; 200 ml
packing was launched in the Market for the public.
o Due to successful launch of Janta milk an 18% increase in total production. A double
toned 200ml packing was mainly launched in Kanpur, Agra and Varanasi.
o In the year 1993-94 Parag booths were established at bus stands and railway stations.
o Due to increase in competition in the public sector a multi brand concept was imposed in
which many units can commence milk. production under any name except Parag.
o Parag booth was initially launched at Jaunpur railway station.
o Muzaffarnagar unit started “PARAKH” brand under the concept of milk brand.
o In the year 1997 Katra Sahkari milk society started functioning in Allahabad.
o In the year 1998 LUCKNOW MILK PRODUCT SAHKARI SANGH was established
30
INTRODUCTION TO DAIRY CO-OPERATIVE
For long years’ milk production in the country has been characterized by small – scale
production of milk by most farmers has made milk producers. This was an important reason
for the Kaira Union & its success. Unions which came in Gujarat during the 1955’s acquired
greater significance that traditional dairy co-operative the reason being, they tuned in with the
processes of modernization and commercialization.
Between 1948 & 1957 the Kaira Union grew from 250 liters from 5 villages’ societies to
50,000 liters from 9000 village’s societies It was therefore, inevitable that they attracted
growing attention of policy makers. Towards the end of 1960’s the lessons of the Gujarat
Dairy Co-operative Movement thus begain to get incorporated in the official policy towards
dairy development. The government of India entrusted the National Dairy Development
Board (NDDB) with task of implementing Operation Flood (OF) which involved creation of
Anand pattern or Amul type co-operative unions in 17 districts of the country.
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OPERATION FLOOD –I(1970-81)
Operation Flood was the result of an organized attempt directed towards the development of
the dairy industry in India. The program has laid emphasis on setting up of Anand Patten
rural milk products co-operative organization to procure process and market milk and to
provide some of the essential technical services for increasing milk with the world program.
The emerging consumption pattern presents new challenging for the dairy industry. The
strategy is now shifting from distribution to sales and marketing. Extreme perishability of
milk and possibilities of its contamination necessitate rapid movement of milk.
Indian dairy market is multi-layered shaped like a pyramid with the base made up of vast
market for western type milk products. Presently, rarely 778 out of 3,700 cities & town are
served by its milk distribution network dispensing hygienically packed wholesome, quality
pasteurized milk.
Of the three A’s of marketing availability, acceptability & affordability, Indian dairying
already endowed with the first, people in India love to drink milk, hence, no efforts are
needed to make it acceptable, its availability is not a limitation either. Because of ample
production; it leaves the third vital marketing factor affordability, how to make affordable for
the majority of consumers with limited purchasing power? This is essence of the challenge.
New emerging daily market will focus on: -
a) FOOD SERVICE INSTITUTIONAL MARKET.
It is growing at double the rate of consumer market.
32
b) DEFENCE MARKET: -
an important growing market for quality products used as raw material in pharmaceutical and
allied industries, India with her sizable dairy industries growing rapidly and is on the path of
modernization would have decades to come. (WFF)undertook to provide as aid 12600 tones
of Butter Oil(BO)for financing the program.
The program organized dairy co-operative at the village level providing and production
enhancement of city set dairies. the main thrust was to setup dairy co-operatives in the milk
sheds, so as to link them to the four metro cities BOMBAY, DELHI, CALCUTTA &
MADRAS, in which a commanding share of the milk market were to be captured. The overall
objective was a modern dairy industry in India, which would adequately meet the country’s
need for milk product.
The object of OPERATION FLOOD- I was:
Removing the middlemen between the producer and consumer by the procurement of the
mild directly by the producer, directly through village co-operative society.
33
OPERATION FLOOD II(1981-85)
The background of the institutional framework of Operation Flood-II essentially comprised
the successful replication of Anand Patten of a three tier co-operative structure of societies,
union & federation. the program was approved by the Government of India for
implementation during the sixth plan period, with an outlay for Rs.273 crores. An about US$
150 million was provided by the World Bank & the balance in the form of commodity
assistance from the expanded number of Village Co-operative societies to 34,500 covering 36
lakh farmer number. The peak milk procurement increased to a level of 79-lakh liters per day
& marketing to 50-lakh liters per day.
OPERATION FLOOD III(1985-96)
The third phase aimed at consolidated gains of earlier phases. The main focus of the program
was on achievement financial viability of the milk union/state federation & adopting the
salient institutional characteristic of the “Anand Pattern Co-operative.” The Operation Flood
–III program was funded by a World Bank Credit loan of US$ 365 million, Rs.222.6 crore of
food aid by EEC & Rs. 207.7 crore by NddB’s own resources. The program covered some
170 milk shades of the country by organizing 70,000 primary dairy co-operative societies.
The objective of Operation Flood –III was:
 To arrange the supply of liquid of milk in major cities in U.P
34
COMPANY PROFILE FOR LUCKNOW
PCDF was formed in 1962 with the aim to develop organized dairying in the State on
Cooperative lines PCDF's is a cohesive body that successfully does away with the
exploitative forces of years to years-the Middlemen. Therefore a direct link is established
between the producer and the ultimate consumer. This Apex Milk Cooperative draws its
inherent strength from the farmers committed participation, and injects corporate skills and
dynamic professionalism into what is fundamentally a traditional institution.
Over the years PCDF has expanded, diversified, channelized into new areas, over new
dimensions, onto new challenges. Today it features prominently in the National Milk Grid,
supplying Milk to Mother Dairy for sale in Delhi.
However, PCDF's achievement cannot be quantified in mere statistics. Its real sense of pride
lies in the fact that its farmer members are heading surely and steadily towards a prosperous
future and the knowledge that its consumers reaffirm their faith in Parag year after year. It is
in this context that PCDF's success is to be measured.
35
A Milk Cooperative, perceived as a business organization, is simply a group of people who
have willingly pooled in resources and energies to pursue a common goal out of which they
derive mutual benefits
 Uttar Pradesh is the largest milk producing state of India contributing 17 % of the
total milk production of India. In the year 2010-2011, the total milk production in the
state was 21033.3 thousand kg. per day
 A milk cooperative society in a village in Allahabad district set up in 1918 marked the
beginning of milk cooperatives in Uttar Pradesh
 Successful efforts gave way to formation of Lucknow Milk Union in 1938-the only
Milk Union in the country -giving Uttar Pradesh the credit of being a pioneer state in
the country in this segment
 PCDF was the chosen agency to implement the World Banks prestigious Operation
Flood programmed in the state
 At present PCDF lends its support and services to 6,00,000 rural milk producers
through 59 District Milk Unions and about 13,500 Village Dairy Cooperatives in the
State
 Parag is the brand name for a range of milk and milk products including- Milk,
Skimmed Milk Powder, Whole Milk Powder, Butter, Ghee, and an array of
indigenous milk products like Paneer, Curd, Peda,Milk Cake, Khoa, Laddu, Mattha
and Chhachh etc.
 Plants in Meerut and Varanasi, are in constant operation to supply balanced diet feed
for milch animals owned by farmers of the state
 Training centers, situated in Kanpur, Lucknow, Meerut, Varanasi, Agra and Rae
Bareilly, impart both skill and awareness based trainings
 A Jersey Cattle breeding unit is located in Rae Bareilly, for rearing of Jersey Bulls
36
 At FFHC Unit in Moradabad ,Frozen Semen Doses of Good quality breed of milch
animals are prepared for Artificial Insemination Services
 Fodder Seed Processing Plant located in Aligarh, produces good quality Fodder Seeds
for distribution to farmers for cultivation of good quality fodder feed for milch
animals
The dairy development in co-operative sector U.P. has long history with Karta co-operative
milk society of Allahabad organized in 1917.milk industry for the first time entered In the
Co-operative sector. PCDF is a pioneer in milk production in U.P. and based on “ANAND
PATTERN”.
Lucknow milk producers’ co-operative union (LMU) was established in 1938. It was an
autonomous body where milk was brought from nearby villages and processed.
In 1962 Pradeshik Co-operative Dairy Federation Ltd. (P.C.D.F.) was established by the
government. The aim was to remove the middleman from transactions between producers and
consumers and also to help the backward classes and villagers economically. The P.C.D.F.
took charge of LMU and other co-operative units of the state after its establishment. Its major
role is to provide technical knowledge to the people at LMU an.
The P.C.D.F’s functions are based on the objectives of the operation flood, which are to
increase the production of milk from matching animals, by providing the technical inputs to
the producers and to arrange the supply of liquid milk products in major cities of U.P. and
other state.
LMU has about 400 workers and 100 staff members. The GM to LMU is appointed by
P.C.D.F. but LMU has its own members of board. There is another office situated at a
distance of about 2 km from P.C.D.F., which is regional marketing office (RMO). The
regional manager heads it.
37
Dairy products are marked under the brand name “PARAG”. They have a considerable
market share in U.P. and other region in north and east. There has been an increase in the
market competition due to the establishment of many private dairies who have introduced
their own brand of milk products.
Amul products still have to face very tough competition in Lucknow “PARAG” due to the
efficient distribution network of marketing division of P.C.D.F.
38
NEW DEVELOPMENTS
As a result of policy of liberalization and de-regulation of govt. of India the State
Government also head away with the licensing provision of U.P. Milk Act, 1976 which
required a license for the processing capacity beyond 500 LPD. Now the dairy industry in the
state is being governed by the provision of MMPO, 1992 (milk and milk products order)
where by the processing units with a capacity of more than 75,000 LPD are required to
register with the competent authority at the Govt. of India level whereas the units ranging
between 10,000 to 75,000 LPD have to be registered with the milk commissioner Govt. of
U.P. the units below 10,000 have been exempted from any registration.
Providing concession at 1.5% the milk price to be paid by the processing units in the state is
creating a milk development fund. This fund will be used for providing assistance to dairy
industrialists, extend health cover and technical inputs, creating additional processing
facilities in the backward areas and holding national and international seminars on new dairy
techniques with a view to encourage private entrepreneurs in the dairy sector. A Dairy
Consultancy Center has been set up by the State Government.
39
Organizational Structure of P.C.D.F.
40
Organizational Structure of L.M.U.
41
42
Aims and objectives
Dairy development program aims at raising the level of rural milk producer, providing them
convenient marketing facilities at their door .as well as good quality milk and milk products
to the consumers particularly of the urban areas at the reasonable price. Dairy also provides
effective supplement to agriculture, especially for the weaker section of the society in rural
areas. Adequate position has been made for technical and attendant services such as artificial
insemination, animal health, fodder and nutritive cattle food.
 Evaluation of standard quality milk and milk products to be marketed by federation.
 Recommending specification for increasing productivity of milk producer and
related milk societies and members of milk union.
 To provide encouragement incentives on production, procedure, processing and
marketing activities of milk products for the economic development of farmer
community.
43
 To improve live stock health and disease control facilities by providing veterinary
services to help co-operative milk unions to achieve this objective.
 To encourage market and research and development programs.
 To help members of the milk union in technology, administration and financial
assistance.
 To arrange collection storage, and transportation of milk and milk products.
 To increase the activities related to development and extension of dairy industry.
 To improve the economic development of milk producers and dairy industry.
Capturing a dominant share of the urban milk market, hitherto served by a multitude
of small milk vendors.
 Creating a procurement network to link numerous co-operative producer societies in
different milk shed areas to the organized urban dairy.
 Dairy development plan aims at raising the level of income of rural milk producers,
providing them convenient marketing facilities at their door, as well good quality
milk and milk products to the consumers, particularly of the urban areas at a
reasonable price.
44
 To make provision for technical and attendant services, such as artificial
insemination, animal health, fodder, seeds green fodder and nutritive cattle food. .
 Recommending specification for increasing productivity of milk producers and
related milk societies and members of milk union.
 To encourage market research and R & D program.
 To establish collection and refrigeration centre, liquid milk units and processing
facilities for distribution and sales of items purchased from various sources.
 To maintain and retain effective network of marketing the product.
 To encourage market research and R & D program.
45
46
47
PRODUCTION
Various dairy products are produced at ‘PARAG’ which includes processed and fermented
products. A list of these products is as follows-
Butt
Crea Milk
er
m
Pane Matt
er ha
PRODUCTS
OF
Flavo Dah
red
PARAG
SS
ee
Milk
Peda Chhe
na
Ghe Khee
e r
48
CREAM
Cream may be defined as –
 That portion of milk which is rich in milk fat.
 When milk fat is concentrated into a fraction of the original milk it is called CREAM.
As per PFA, Cream, excluding sterilized cream, is the product of cow or buffalo
milk or combination which contains not less than 25% milk fat.
 Generally cream is a semi milk product and is not commonly sold.
However, when the cream is sold it has 40% fat and rest component of the cream are water,
solids which are not fat.
TYPES OF CREAM-
1. TABLE CREAM- 20-25% FAT
2. LIGHT CREAM-20-25%FAT
3. COFFEE CREAM-20-25%FAT
4. WHIPPING CREAM-30-40%FAT
5. HEAVY CREAM-30-40%FAT
6. PLASTIC CREAM-65-85%FAT
49
BUTTER
It may be defined as fat concentrate, which is obtained by churning cream, gathering the fat
in to a compact mass.
COMPOSITION:
Butter fat : 80.2%
Moisture : 16.3%
Salt : 2.5%
Curd : 1.0%
50
GHEE
Ghee is one of the most important product of Parag dairy as it has a competitive market share
in U.P. some of the main competitors of this specific product are- Amul, Anik, Gokul etc.
Manufacturing plants and equipment required for ghee production are-
 Melting vat
 Ghee
 Settling tank/ storage tank
 Filling tank
 Dump tank
 Packing machine
 Packing material
51
WHITE BUTTER
Manufacturing of white butter and table butter is almost the same, except in case of table
butter salt and annatto color is added, where as in white butter nothing is added.
PEDA
It is one of the most popular products of Parag dairy. For preparing it, first we boil milk in
an open pan to the extent, khoa type paste is made. Then it is made taken out in trays and
spreaded uniformly. Grinded cardimum is spread once the uniform upper layer of the
paste. Now it is out into the required size of packing and thus got packed. It is ½ kg and
01 kg packing.
52
MATHA
Generally double toned milk (1.5% fat and 9.00 SNF) is taken for its manufacturing. Curd
is made out of this milk. As per process system when the proper curd is made, salt and
masala is added as per acceptable taste and flavour. Then it is packed in 200 ml packing.
PANEER
The milk is boiled to 90 C. the specified coagulant is added and then it is set in paneer
hoofs and pressed. Now this is cut into different sizes of packing viz 100 gm, 200 gm,
500 gm and 1000 gm.
53
DAHEE
(THE FERMENTED PRODUCT)
Generally toned milk is taken for dahee making but at LPCMU presently full cream milk
(60% fat & 9.00% SNF) is taken for the purpose. This deviation to higher quality of milk
is due to the fact that consumers of Lucknow generally need rich dahee. It is available in
two types:
 Sweetened dahee
 Plain dahee
Dahee is well known fermented milk product consumed by people as a refreshing
beverage. It is mildly sour product with a pleasant flavour formed by the combined
action of acid producing & flavour producing bacteria. It is produced by using starter
culture of various bacteria like Lacto coccus lactic, L. deacetylates, Leuconostoc
mesenteries, Streptococcus thermophilus etc.
54
Pictures of various machines of dairy plant: -
Dairy Evaporator Ghee Plant
Refrigeration Plant Dairy Product
Processing machine
55
56
Important points about producers’ co-operative dairy federation
P.C.D.F. was established in 1962.
In 1970-71, the P.C.D.F. took charge from the operation flood I.
In 1975, P.C.D.F. started in “Sanskar Prainan” with the economical assistance of
FFHS, Britain and state government.
In 1996, UP MILK ACT was passed.
In 1997, the federation established at 20 thousand liters daily handling dairy in
Faizabad. The cost of the project was 65.59 lakhs.
In November 1982, operation flood II Project was launched for better supply of milk.
In September 1987, Operation flood II ended and Operation III was started. This
project was laid down on the guidelines of the dairy development boards.
“Parag suruchi” was launched in the market in1993-94.
On 15th august 1993, 200 ml, packing was launched in the market for the public.
Due to successful launch of Janta Milk and 18% increase in total production, a double
load and 200ml. packing was mainly launched in Kanpur, Agra and Vanarsi.
In the year 1993-94, Parag booths were established at bus stand and railway station.
In the year 1938, Lucknow milk product Sahkari was established.
This industry had established on 23rd march 1938 by late Rai Bahadur Pandit Gopal Lal
Pandiya at sri. Ram Anathalay, Ganesh Gunj, Lucknow. This industry is first co-operative
57
industry not only of state but also of country. At present the total assets of this industry
566.65 lakh and milk handling capacity is 2 lakh liters per day.
1.5 lakh people are using Parag products. It is running towards to get highest position in the
market by producing and selling other products of milk like Parag Butter, Ghee, Peda, Ice
Cream, Milk Cake, Laddo, and Chhena Kheer etc.
Lucknow milk union has got “CHAL VAIJANTI” by very hard attempt in the field of milk
acquisition and milk marketing. Government of UP has started intensive mini dairy project to
make more dynamic milk development under the women dairy project of milk union
Lucknow. There is 6484 women member in the 36 milk societies under the intensive mini
dairy project in the year 2002-03. 75 milk producers have been conferred loan by U.P.
Government.
58
PARAG an ISO & HACCP Certified Company
The new ISO 22000 standards delivers a common global framework of safety requirements
for all organizations in the food supply chain, including crop production, processing,
distribution, and related operations. It is an international standard that harmonizes various
existing national and industry certification schemes. ISO 22000 incorporates HACCP
(Hazards Analysis of Critical Control Points) principles and implementation plans. Overall,
ISO 22000 creates an effective framework for food safety management, communication
along the food supply chain, and control of food safety hazards.
With registration to ISO 22000, you get-
 A single, globally- accepted standard.
 Uniform food safety procedures worldwide
 Improved communication with your trading partners
 Better understanding and implementation of HACCP principles
 A driver for continuous improvement
 Improved food safety hazard control
 A uniformly auditable standard.
Rely on QMI’s industry knowledge and experience QMI is uniquely positioned to
support ISO 22000.we have extensive experience and expertise in the food industry,
including HACCP audit programs, an organic certification program, as well as ISO 9001
59
quality management systems, ISO 14001 environmental management systems and
OHSAS 18001 occupational health and safety.
ISO 22000 is an international standard that harmonizes existing national and industry
certification schemes.
ISO 22000:2005
Food safety management system – requirements for any organization in the food chain,
provides a framework of internationally harmonized requirements for the global
approach that is needed. The standard has been developed within ISO by experts from
the food industry, along with representatives of specialized international organizations
and in close co-operation with the Codex Alimentarius Organization (FAO) and World
Health Organization (WHO) to develop food standard.
ISO 22000is designed to allow all types of organization within the food chain to
implement a food safety management system. These range from feed producers, primary
producers, food manufacturers, transport and storage operators and subcontractors to
retail and food service outlets together with related organization as producer’s of
equipment, packaging material, cleaning agents, additives and ingredients.
Developed with the participation of food sector experts, ISO 22000 incorporates the
principles of HACCP, and covers the requirements of key standards developed by various
global food retailer syndicates, in a single document.
It is designed to be fully compatible with ISO 9001:2000 and companies already certified
to ISO 9001 will find it easy to extend this certification to ISO 22000. to help users to do
60
so, ISO 22000 includes a table showing the correspondence of its requirements with
those of ISO 9001:2000.
HACCP;
Hazard analysis and critical control point (HACCP) certification is synonymous with
food safety. HACCP is a food safety risk management system that addresses biological,
chemical and physical hazards through anticipation and prevention rather than by a
finished product inspection. The Good Manufacturing Practice (GMP) or Good Hygiene
Practice (GHP) or Good Agriculture Practice (GAP) certifications are required
prerequisites for an effective HACCP system.
HACCP is compatible with management systems, such as Total Quality Management
(TQM) and ISO9001, among others. HACCP certification is recognized worldwide by
government food authorities and food business.
61
HR POLICIES
There were also welfare schemes for the employees of the union
 Scholarship and financial assistance for the children of the employees.
 Financial assistance in the case of accident of employees.
The children of the class 3 and class 4 employee of the federation get the scholarship and
financial assistance of Rs 50/month, If they get 70%or more in high school and
intermediate examination, while getting 70%or more in graduation they will get Rs.
100scholarship and for professional course students provision of Rs.500 scholarships is
there.
A ‘personal accident welfare fund’ was constituted for providing financial assistance for
the family of all the employees of the federation, who has lost any part of body in
accidents. This scheme is known as “PAWAS-1985”. They get assistance up to
Rs.5.26lakhs in case of accidental loss. The scheme does not include the case of suicides,
accidents due to intention of crime. Every employee has to contribute Rs.10/month to the
fund.
62
The management has taken a number of steps for providing welfare measures to the
employee of the milk co-operative. Apart from this, employees are paid Rs. 1 lakh
gratuity, which again is at par with of State Government employees.
In case of the sudden death of any employee during his service period, one of his
dependents is given employment. Under the employee welfare scheme, there is provision
to provide the employees with aid in case of accident, cancer, heart attack, paralysis etc.
In case some employee is affiliated by some handicap or restrictive disease, he is given
special facilities to help him cope with the problem. There is provision for adequate
medical facilities for the employee.
Special farewell arrangements are made for retiring employees. The retiring employee is
facilitated at the function, given presents and honored. Later he sent home by official
conveyance. This is a special way of showing appreciation for his contribution. Every
year bonus is paid to the co-operatives.
63
Employee welfare scheme
In PARAG CO-OPERATIVE DAIRY, LUCKNOW UNIT (factory) there is a labour welfare
scheme for the workers of the dairy. This employee welfare scheme can be divided into two
sub parts: -
1) Group saving link insurance (GSLI)
2) Employee saving insurance (ESI)
Group saving link insurance (GSLI)
GSLI is a kind of insurance scheme which is must for every employee of the organization.
This scheme has different insurance amounts for different classes of employees working in
the organization. The different schemes under GSLI are as follows-
FOR GENERAL MANAGER- For G.M. of the organization the insurance saving amount is
Rs. 425/month, which includes 35% saving factor and 65% risk factor. Under this scheme,
amount of Rs. 425000/- is paid to the family of the employee on his/her death.
64
FOR MANAGERS- For manager of the organization the insurance saving amount is Rs.
325/month, which includes 35% saving factor and 65% risk factor. Under this scheme,
amount of Rs. 325000/- is paid to the family of the employee on his/her death.
FOR CLASS 3 EMPLOYEES- For class 3 employees, the insurance amount is Rs.225000/-
which is provided to the employees’ family after the death of employee against saving of
Rs.225/month.
FOR CLASS 4 EMPLOYEES- For class 4 employees, the insurance amount is Rs.100000/-
which is provided to the employees’ family after the death of employee against saving of
Rs.100/month
In GSLI some other facilities are also provided to the employees-
 In case of accident and fracture amount of Rs.2000 is being provided to the employee
concerned, as medical facility.
 In case of illness amount of Rs.5000 is being provided to the employee concerned.
 On death of employee total saving of GSLI + job to one of his/her family member is
provided. The organization also gives 2kg. ghee for “ANTIMSANSKAR” of the
employee.
 In case of handicap, the employee get pension ESI.
 On retirement cash Rs 3500 + gift is provided to the employee.
65
Employee saving insurance (ESI)
This scheme is mainly for the lower level factory employees and contract labour. Under this
scheme, employees are facilitated by free medical facilities.
In Parag (Lucknow milk union) approx. 200 contract labours are working at present. The
main objective of this scheme is to provide free medical facilities and sense of security to the
contract labour working in the factory.
MR. RAM SHANKAR (contractor in LMU) has given us some recent examples of ESI,
applied in LMU-
 One labour has kidney defect and he has been given Rs. 200000 as medical aid.
 A boy has got a finger cut and he has been given Rs.75/month whether he works or
not.
66
Government projects conducted by Parag dairy
Parag dairy has two main government projects: -
1- Mini Dairy Project
2- Women Dairy Project
1. Mini Dairy Project
The mini dairy project contains following features: -
Some subsidies are provided to the members related to the projects.
Milk is collected through societies formed in villages.
Medical facilities are provided to the animals at low prices.
Fodder is provided to the animals.
Bonus is also provided to the farmers.
Payment is made in every 15 days to the farmers, i.e. the members of the society.
67
There are two types of card used by the farmers in order to take free/low cost medical
facilities for their animals. These are –
A) RED CARD
B) WHITE CARD
A) RED CARD: - Red card is a kind of emergency slip, which is provided to the
members of society against the nominal fees. As this is an emergency slip, the ill
animal is attended by the Doctor as soon as possible on the same date.
B) WHITE CARD: - white card is a kind of general slip for weekly check-up of the
animals of the society.
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2. WOMEN DAIRY PROJECT
Under this project all work is done through women only. They supervise the society and take
care of all the matters related to the project. They are also concerned with the problems of the
society members and take all possible measures to solve their problems.
Some special features of this project are as follows: -
Some subsidies are provided to the members related to the projects.
Milk is collected through societies formed in villages.
Medical facilities are provided to the animals at low prices.
Fodder is provided to the animals.
Bonus is also provided to the farmers.
Payment is made in every 15 days to the farmers, i.e. the members of the society.
This project also has the facility of red and white cards for there members of society.
69
PROGRAMS OF TRAINING AND DEVELOPMENT
TRAINING:
Training refers to the process of imparting specific skills, abilities and knowledge to an
employee. It is a process of learning a sequence of program behaviour. Training is application
of knowledge. It is an act of increasing the knowledge and skills of an employee for doing a
particular job. The major outcome of training is learning.
Training & development need = standard performance – actual performance
METHODS OF TRAINING- There are two types of training methods-
1. On the job training
2. Off the job training
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1. ON THE JOB TRAINING- In this method the employee is being trained during the
job period. Some important methods of on the job training are as follows-
ON THE JOB
TRAINING METHODS
Job Apprenticeshi Orientatio

Instruction p n
Internship Assistanceshi Training Job
p Rotation
71
2, OFF THE JOB TRAINING- off the job training method is also very important tool of
training. Some of the important off the job training methods are as follows-
OFF THE JOB

TRAINING METHODS
Vestibule Films T.V. Case

Study
Lecture Conference Role
Playing Laborator
y Training
72
TRAINING INSTITUTES FOR PARAG EMPLOYEES
There are some institutes, which provide training to the employees of Parag dairy. U.P.
Government also rewarded funds for the training of the employees of Parag as well as the
farmers who are supplying milk to this cooperative dairy.
For the year 2013-10, the U.P. government has provided an aid of Rs. 24, 80,000/- in order to
increase the level of computer literacy.
NAME OF THE INSTITUTES
1. U.P. electronic corporation limited, kaisarbag, Lucknow. Computer training.
2. Vaikunth Mehta national institute of cooperative management, university road,
pune.
3. National Dairy Development Board Anand
For 2013, programs are-
 TQM & quality certification for cooperatives. (fees- Rs. 4,125/-)
 Cost analysis & working capital management for dairy cooperatives.
(fees- Rs. 4,125/-)
DEVELOPMENT
Development refers to the learning opportunities designed to help employees’ growth.
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By developing the skills of employees an organization can increase its productivity as after
development of employees they will be more efficient to produce qualitative output.
Some of the important techniques used for development of employees are as follows –
JOB
ENLARGEMENT
METHODS
OF
DEVELOPME
NT
JOB JOB
ENRICHMENT ROTATION
The main objective of training and development is to equip the employees of the organization
to meet the changing requirement of the organization, so that they can do well in their job. It
is a way of preparing them for higher level tasks.
We need training programs in every organization because of the following reasons-
 To increase productivity.
 To improve quality.
 To help company fulfill its future personal needs.
 To improve organizational climate.
 To improve health & safety etc.
74
Physical Activity Progress
YEAR MILK Liquid Functio Members Poure Profit Catt Milk
PROCURE MILK nal hip r -Loss le Producti
MENT Sale Societies Memb (PCD Feed on
(‘000 (‘000 (VDC) er F & Sale (‘000MT
Kgs/Day) Kgs/Da its s )
y) Units) (MT
(Lac. )
Rs.)
2006-07 1044.09 505.46 16856 591543 31582 - 1826 18095
9 546.6 2
8
2007-08 925.48 508.73 16135 597387 27108 - 1919 18859
3 868.6 2
7
2008-09 815.27 485.34 15497 696353 32372 -45.73 1632 19537
4 5
2009-10 625.12 430.05 14279 624032 30078 - 1378 20203
9 2258. 0
24
2010-11 641.75 407.57 13902 622119 38059 - 1234 21033
2 1259. 9
92
(5) DATA ANALYSIS AND INTERPRETATION
Q1-Are you satisfied with the Recruitment policy of the dairy?
a) Highly Satisfied b) Satisfactory c) Not Satisfied
75
INTERPRETATION- In Parag milk union Lucknow only 10% of employees are highly
satisfied with the recruitment policy of the dairy and other 40% feel it only satisfactory while
50% are not satisfied with it.
Q2-Are you satisfied with the Selection policy adopted by dairy?
76
INTERPRETATION- In Parag milk union Lucknow, only 30% of employees are satisfied
with the selection policy of the dairy and 40% are not satisfied with it while for 30% of
employees it is only satisfactory.
Q3-Are you satisfied with the working conditions of the dairy?
77
INTERPRETATION- In Parag milk union Lucknow only 25% of employees are satisfied
with the working condition of the dairy and other 55% feel it only satisfactory while 20% are
not satisfied with it.
Q4-Are you satisfied with the training and development policy adopted by dairy?
78
INTERPRETATION- In Parag milk union Lucknow only 30% of employees are satisfied
with the training and development policy of the dairy and other 45% feel it only satisfactory
while 25% are not satisfied with it.
Q5- Is there any rule regarding service and factory in your dairy?
YES NO
79
INTERPRETATION- In Parag milk union Lucknow, 94% employees know about the
service and factory rules of the dairy while 6% of employees are not aware about these rules.
Q6- Is there any special facility provided to the ladies staff of the dairy?
YES NO
80
INTERPRETATION- In Parag milk union Lucknow, 100% employees are agreed on the
point that no special facility is provided to the ladies’ staff of the dairy.
Q7-are you satisfied with facilities provided by the dairy regarding the following-
(YES/NO)
81
a) Holidays facilities
INTERPRETATION- In Parag milk union Lucknow 96% of employees are satisfied with
the holidays facilities provided by the dairy and only 6% are not satisfied with it.
b) Canteen facilities
82
the canteen facilities provided by the dairy and 70% are not satisfied with it.
c) First aid facilities
83
the First Aid facilities provided by the dairy and 35% are not satisfied with it.
d) Medical facilities
84
the Medical facilities provided by the dairy and 80% are not satisfied with it.
e) Drinking water facilities
85
the Drinking Water facilities provided by the dairy and 25% are not satisfied with it.
f) Rest room facilities
86
the rest room facilities provided by the dairy and 90% are not satisfied with it.
g) After death facilities
87
the after death facilities provided by the dairy and 80% are not satisfied with it.
Q8- Are you satisfied with the techniques of performance appraisal of employees?
88
satisfied with the techniques of performance appraisal in the dairy and other 55% feel it only
satisfactory while 25% are not satisfied with it.
Q9- Are you satisfied with the environment of the dairy?
89
satisfied with the environment of the dairy and other 50% feel it only satisfactory while 20%
are not satisfied with it.
Q10- Are you satisfied with your pay scale?
90
satisfied with the Pay Scale provided by the dairy and other 62% feel it only satisfactory
Q11- Are you satisfied with the timings of the dairy?
91
satisfied with the timings of the dairy and other 10% feel it only satisfactory while 2% are not
satisfied with it.
Q12- Are you satisfied with the incentives provided by the dairy?
92
satisfied with the incentives provided by the dairy and other 10% feel it only satisfactory
Q13 - Are you satisfied with the extracurricular activities organized by the dairy?
YES NO
93
INTERPRETATION- In Parag milk union Lucknow, 12% employees are satisfied with the
extracurricular activities organized by the dairy while 88% employees are not satisfied with
it.
Q14- How is the interpersonal relationship between the management and employees?
a) Excellent b) Good c) Average d) Poor
94
INTERPRETATION- In Parag milk union Lucknow, the interpersonal relationships among
the employees are satisfactory, as 56% employee rated it as average, 39%of them rated it
good, 4% excellent and only 1% employees rated it poor.
Q15- Is there any special policy for the contract labour working in the factory?
YES NO
95
INTERPRETATION- In Parag milk union Lucknow, 88% employees are answered that
there is policy for contract labour while 12% employees said that there is no special policy
for contract labour.
Q16. Are you satisfied with the actions taken against the
A. theft by employees
a. fully satisfied b. partly satisfied c. least satisfied d. not satisfied
96
97
INTERPRETATION- In Parag milk union Lucknow, 20% employees are fully satisfied with
the actions taken against theft by emploees,43% are partly satisfied,17% are least satisfied
and 20% employees are not satisfied with these actions.
B. Absenteeism of employees
98
99
the actions taken against absenteeism by emploees,48% are partly satisfied,14% are least
satisfied and 2% employees are not satisfied with these actions.
Q17- Are you satisfied with the methods of grievance handling? a)
Fully satisfied b) Partly satisfied c) Least satisfied d) Not satisfied
100
101
the methods of grievance handling,48% are partly satisfied,16% are least satisfied and 14%
employees are not satisfied with these methods.
Q18-Are you satisfied with the employee welfare schemes conducted by the dairy?
YES NO
102
INTERPRETATION- In Parag milk union Lucknow, 25% employees are satisfied with the
employee welfare scheme conducted by the dairy while 75% employees are not satisfied with
it.
Q19- Is there any government insurance scheme for employees?
YES NO
103
INTERPRETATION- In Parag milk union Lucknow, 83% employees said that there is
government insurance scheme for the employees, but 17% employees are not aware of it.
Q20- If yes, then are you satisfied with it?
a) Fully satisfied b) Partly satisfied c) Least satisfied d) Not satisfied
104
s
105
INTERPRETATION- In Parag milk union Lucknow,6% employees are fully satisfied with
the government insurance scheme,10% are partly satisfied,32% are least satisfied and 52%
employees are not satisfied with these methods.
Q21-Is there any pension policy for the employees of the dairy?
YES NO
106
INTERPRETATION- In Parag milk union Lucknow, 100% employees said that there is no
pension policy for the employees of the dairy.
Q22- Is there any annual function organized by the dairy for the entertainment of
employees.
YES NO
107
INTERPRETATION- In Parag milk union Lucknow, 100% employees said that there is
organized annual function, but it is not organized at every year.
(6) FINDINGS
From the above analysis I get the following points, which can be described under the
subheading of Points of Satisfaction by the Employees and Points of dissatisfaction by the
employees. These points are as follows-
Points of Satisfaction by the Employees
Most of the employees are satisfied on the following points which are related with their job
and the dairy where they are working. These points are-
 Working condition of the dairy.
 Training and development policy.
 Holiday’s facilities.
108
 First aid facilities
 Drinking water facilities.
 Performance appraisal policy.
 Environment of the dairy.
 Pay scale.
 Timings
 Interpersonal relationship among management to employees, employees to employees
and employees to lower level staff.
 Action taken against theft and absenteeism.
 Methods of Grievance handling.
109
Points of Dissatisfaction by the Employees
Many employees are dissatisfied on the following points which are related with their job and
the dairy, where they are working. These points are-
Recruitment policy.
Selection policy.
Canteen facilities.
Medical facilities.
Rest room facilities.
After death facilities.
Incentives.
Extracurricular activities.
Employee welfare scheme.
Government insurance scheme.
Annual function.
Special facilities provided to ladies’ staff.
110
(7) CONCLUSION
In Parag (Lucknow milk producers cooperative union), my research topic is “employee
satisfaction; in which I concluded that the level of satisfaction of employees are average in
the L.M.U. There are many points of satisfaction and dissatisfaction among the employees of
the dairy.
The employees of dairy are satisfied on certain point’s like-holidays facilities, training and
development, timings, first aid facilities etc., but there are number of points on which they are
not satisfied at all. Some of those dissatisfaction points’ are- recruitment and selection policy,
medical and after death facilities, employee welfare scheme, government insurance scheme
etc.
I would like to conclude my research report by giving following concluding points-
 The dairy should try to take an overall opinion of there employees regarding policies
of employee welfare.
 The dairy should try to provide immediate first aid facility to the injured employee
and provide them a fare amount of money in case of further medical treatment.
 The policies and rules which are set by the dairy should be strictly followed.
111
(8) SUGGESTIONS AND SCOPE FOR
FUTURE RESEARCH
SUGGESTIONS:
The employee welfare scheme should be revised and it should consider the
suggestions and recommendations by the employees of the dairy.
The dairy should introduce an incentive policy which motivates the employees to
give their best to the dairy.
Government insurance policy is also need a revision in order to provide more
benefits to the employees of the dairy.
Extracurricular activities should be organized in the dairy after a fixed time period
so that the employees can groom their personality.
Annual function should be organized on every year.
Pension policy should be made for the employees.
SCOPE FOR FUTURE RESEARCH
112
The study has covered only Parag (Lucknow Milk Producers Co-operative
Union). The other company in the study may also be considered and comparative
study may be undertaken.
The study covers only the period of 7 weeks. This period may be extended for
better results
BIBLIOGRAPHY
BOOKS
1) Human Resource and Personnel - K. Asawathappa
Management.
2) Annual Magazine of PCDF named
“SMARIKA”
3) Some past reports and documents
of PCDF.
4) Matter provided by the staff of LMU.
5) Matter provided by the research guide of mine Mr. D.P.Singh.
WEBSITES: -
 www.pragmilkup.com
113
 www.wekipedia.com
ANNEXURE
QUESTIONNAIRE
Q1-Are you satisfied with the Recruitment policy of the dairy?
Q2-Are you satisfied with the Selection policy adopted by dairy?
Q3-Are you satisfied with the working conditions of the dairy?
Q4-Are you satisfied with the training and development policy adopted by dairy?
Q5- Is there any rule regarding service and factory in your dairy?
114
YES NO
Q6- Is there any special facility provided to the ladies staff of the dairy?
YES NO
Q7-are you satisfied with facilities provided by the dairy regarding the following;-
YES/NO
a) Holidays facilities
b) Canteen facilities
c) First aid facilities
d) Medical facilities
e) Drinking water facilities
f) Rest room facilities
g) After death facilities
Q8- Are you satisfied with the techniques of performance appraisal of employees?
Q9- Are you satisfied with the environment of the dairy?
Q10- Are you satisfied with your pay scale?
Q11- Are you satisfied with the timings of the dairy?
Q12- Are you satisfied with the incentives provided by the dairy?
115
Q13 - Are you satisfied with the extracurricular activities organized by the dairy?
YES NO
Q14- How is the interpersonal relationship between the management and employees?
a) Excellent b) Good c) Average d) Poor
Q15- Is there any special policy for the contract labour working in the factory?
YES NO
Q16. Are you satisfied with the actions taken against the
A. theft by employees
B. Absenteeism of employees
Q17- Are you satisfied with the methods of grievance handling?
Q18-Are you satisfied with the employee’s welfare schemes conducted by dairy?
YES NO
Q19- Is there any government insurance scheme for employees?
YES NO
Q20- If yes, then are you satisfied with it?
Q21-Is there any pension policy for the employees of the dairy?
YES NO
Q22- Is there any annual function organized by the dairy for the entertainment of
employees.
116
YES NO
117

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SUMMER TRAINING PROJECT REPORT

LEVEL OF EMPLOYEE SATISFACTION

Management Research Project -I

Under the guidance of: Submitted by:

Roll no. -162110018

M.B.A. 3rd semester

In this Project I have studied “LEVEL OF EMPLOYEE SATISFACTION IN PARAG

(LUCKNOW MILK PRODUCERS CO-OPERATIVE UNION).” Managing human

important. Recognition of people as a valuable resource in the organization leads the

increasing trend of employee maintenance, job security, etc.

labor standards, transparency, accountability, and participation. My research project deals

with “LEVEL OF EMPLOYEE SATISFACTION IN PARAG (LUCKNOW MILK

influencing a sense of professionalism in the budding professionals of tomorrow.

It is mandatory for every student of “Master of Business Administration” from institute of

“DSMNRU, LUCKNOW” to undergo summer training at organization location with a project

Operative Milk Union Ltd.), for 7 weeks.

Sr. No. Topic Page

 INTRODUCTION OF THE EMPLOYEE 8

2 REVIEW LITERATURE 12-12

3 RESEARCH METHODOLOGY 13-15

 DATA COLLECTION TECHNIQUES 14

4 COMPANY PROFILE 16-75

 INTRODUCTION OF THE COMPANY 17

 HISTORY OF THE ORGANISATION 24

 PRODUCT AND SERVICES OFFRERED BY THE 46

5 DATA ANALYSIS AND INTEREPRETATION 75-103

8 SUGGESTIONS AND SCOPE FOR FUTURE RESEARCH 108-108

 SCOPE FOR FUTURE RESEARCH 108

Introduction Employee Satisfaction:

Objectives of the study:

order to complete my M.B.A. research.

growth of the company.

Scope of the study:

The sources and effect of stress:

Factors causing stress:

Why should an employer care?

Happiness in the workplace leads to much higher levels of productivity it increases

The specific objectives are as follows:

 To evaluate the working environment in parag Lucknow.

 Other satisfactions of employees like leave, promotion, motivation interest, medical

the employees of Parag Milk Factory, Lucknow.

provided by my marking guide.

research report we collected primary data through questionnaire.

Questionnaires are administered in direct personal interview.

Universe selected for Research is Lucknow.

For this research we make use of stratified random Sampling.

STATISTICAL TOOL TO BE USED

Established : In the year 1938

Registration : 23rd march 1938

First dairy inspector : Mr. N.K. Bhargawa

Board of capital : state govt. of 90%, co-operative10%

Location : 22, Jopling Road, Lucknow.

Area of distribution : Initially Bakshi Ka Talab, Tewariganj and Gosaiganj

and presently the entire city.

Pradeshik co-operative Dairy Federation has mentioned.

manager of that division. General Manager of every division is responsible to managing

implementation of system for sorting the problems of unions.

functional divisions well before, approval, implementation be routed through the

The state government appoints the Managing Director of the organization.

He /She is of the rank of I.A.S Officer.

which can be divided in following categories: -

Class 1: General Manager : 1

Class 3: Subordinates : 183

Class 4: Lower Staff : 92 Approx.