IMAGE LABELS PVT. LTD.

CHAPTER 1 Industry Profile

The History of Labels: Colorful paper labels have been used to identify products since the early 1880s. Introduced to America by European artists, this profession became known as lithography, the first commercial art. The goal was easy: catch the customer's eye. In the early 1930s, an entrepreneur R. Stanton Avery manufactured the world's first self-adhesive labels and made it into a successful business. Pressure sensitive labels are an integral part of our lifestyle today. In 1969 Gary Stark weather, at Xerox's research facility in Webster, New York, demonstrates using a laser beam with the xerography process to create a laser printer. In 1984 Hewlett-Packard introduced the LaserJet laser printer, featuring 300dpi resolution, for US$3,600. World label continues to be innovative with new labeling products. History of Indian Label Industry: The Indian label Industry is now firmly in the fast growth path. The Indian label industry has a growth of 20% per annum and is at par with its global counterparts. As the base has increased, the incremental growth has become significant. In this scenario, many new players are entering the field and the established players are moving up the value chain. The trend touches every section of the industry. While the growth of self adhesive label and within the segment the interest in transparent and filmic labels is the major focus, the wet glue label holds it own and shows a double digit growth. The flexible shrink and wrap around label is the fastest growing segment albeit still having a small base. The focus is also on value addition in terms of aesthetic and finishes at one level and the brand protection, security and product tracking at the other level, the advent of smart label adds another dimension to the growth story, the industry is set to surpass the US$ 1 billion mark in the next three years.

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The labels printed in the country can be compared with the best in terms of quality, variety and prices. By and large, paper, films, adhesives, silicon, release liners and printing inks are all available locally and the scene has the homegrown players rubbing shoulders with global giants. Indian label stock market is also seeing a lot of action. Indian manufacturers have existed and grown along with the global giants. The growth translates into a demand for increasingly sophisticated and faster label presses. While many new label presses are being imported into the country the native manufacturers have stepped into serve the entry level and lowend segment. The label stock manufacturers in the country continue to grow and the home grown and international players find abundant opportunities in their niches. Inks, coatings, adhesives, release lines and other consumables are all available locally. The preliminary estimate complied over the label industry including wet glue paper labels, pressure sensitive labels, flexible wraparound labels an shrink sleeves grew from Rs. 1077 crore in financial year 2003-04 to Rs. 1381 crore in FY 2006-07. The label industrys size-including wet glue, pressure sensitive (including holograms), flexible and wraparound labels in 02-03 was Rs. 1842 crore. The growth trends seen earlier as anywhere from 10-18 percent for various segments of the label industry has been revised upward from 11-25 percent, so now may see a higher average growth rate-slightly more than 19 percent to the 2009-10 financial year. Indian label industry is still small by world standards but it is growing faster than the world average growth of 5.5 percent. Within the label segments, shrink sleeves and wraparound labels are growing fastest at over 17 percent, while pressure sensitive and thermal transfer labels are growing at 15 percent and wet glue label growth is about 10 percent. Although the label industry in India is estimated to be less than half a Percent of the world label production that is nearing 60 billion dollars, it is growing at a rate of more than 13 percent if we take all its paper and synthetic flexible components together. The Industry estimate excludes cloth labels that are silk-screened on locally manufactured machines (possibly over Rs 1000 crore) and tags (with no estimate at B N M I T School Of Management Studies Page 2

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this point), which can be of very high value (even machine readable), volumes, and precision for industries such as garments or tea bags.

Importance of Labels: Labels are useful to the customers in creating the brand image. The consumers also are influenced by the sheer look of the labels. It promotes among other things information about the products and sales of the product, the other uses are:

Product identification, name tags, advertising, warnings, and other communication. The labels are a modern and effective tools that paved the way to alternative communication, may it be for personal use or corporate services. The labels are great prints at affordable cost. The labels provide utmost convenience to every user. The labels are said to stay longer even through repeated handling over time. The labels are attractive prints that enhance ones personal style.

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CHAPTER 2 Company profile

Background and inception of the Company: Image Labels Pvt. Ltd. was established in the year 1996 as manufacturer of specialty pressure sensitive adhesive labels specific to the electronics, electrical and automobile industries. Promoters of the company are professionals with extensive experience in the graphic specialty printing industry. All through the formative years, thrust has been on self sufficiency and integration of support services into the main stream. Image Labels Pvt. Ltd. was started by four directors, Mr. Sujan Nailady, Mr. Jayashankar, Mr. Gopi M. R. and Mr. Srinivasa Reddy. This company is now The Second Largest Printing Technology Industry in South India. Industrial growths in label industry are increasing year by year. Over the years it is no doubt that label has also become one of the fast moving consumer goods. The Image Labels Pvt. Ltds growth over its competitors is significant. The organisational structure, cross-function team and strategic business unit are functioning effectively, thus it can be said the Image Labels is fully committed to growth. The company has been making 30% profit every year and the sales are been increasing at a very high rate. The company did not make profit in the year 2009 due to recession. It started with a capital of 19 lakhs and has made 100% profit in 10 years. It has reached a mark of 19 crores in the year 2006, and increasing every year. The company has consistently shown an average growth rate of 60% since inception. The company has state of the art technologies in design, pre-press and till final product. B N M I T School Of Management Studies Page 4

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Image labels, manufactures specialty pressure sensitive adhesive labels as per specification of customers. The company is mainly concentrates on the Fascia Panels, Pressure Sensitive Labels for the major players in the electronic white goods industry. It is involved in manufacturing Fascia Panels, Membrane Overlays and all types of Pressure Sensitive and Self Adhesive labels for Electrical and Automobile Industry. The long standing customers of the company are Siemens VDO, GE, Bharath Electronics, Compaq and Air Deccan. This companys products are made for specific customers and hence do not need much of advertising to get new clients. The product in use is seen by other companies and they approach Image Labels directly for further enquiry. This company is ISO 9001-2000 certified and is working towards getting TQM. The company has membership with SGIA, USA a recognized body for International Recognition enabling them to keep pace with the rest of the world with their information update on the international development in the industry. The companys product is approved by Underwriters Laboratory (UL), USA and the companys name is listed in the ULs Yellow Directory (International Directory). Product quality, pricing and delivery assurance are the key priorities keeping in view long-term relationship with clients. Stringent process control and quality assurance programs are constantly carried out to check the products at every stage. This is further enhanced by direct import of raw materials from reputed suppliers known for their quality and leadership such as 3M, GE, Sericol, Nitto, Averu Dennison, Autotype, etc. and processed parameters are rigid to ensure a consistently high level of product quality. Testing equipment and quality assurance forms major part of the facility and their products are self certified goods that can go into assembly without the need for inspection at the customer end and add to their quality. Great care is taken to balance the production plans and JIT (Just in time) deliveries to the customers. This is made possible because of their in-house process B N M I T School Of Management Studies Page 5

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capability, end to end ERP, trained work-force, and integrated operations from artwork to die-cut. The current manufacturing facility covering 65,000 sq. feet is fully owned, integrated-design, R&D and manufacturing facility for over 450 employees working round the clock in 3 shifts. Products Profile: The company specializes in the manufacture of special adhesive labels, and is making several products as per the customers requirements. The products are: Auto instrument dials Automotive decals Fascia panels Membrane overlays Brand logos and name plates Warning and caution labels PU dome labels Insulators and gasket Self adhesive labels Aviation labels Barcode labels Security labels Warranty labels Thermal pads (CPU and chip) Laser engraving High temperature labels Velcro Caution labels Foamex Nameplates In mold decorative labels

Auto instrument dials:B N M I T School Of Management Studies Page 6

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Separate product line Flat, backlit, thermo-formed dials Automotive decals/graphics: Decorative graphics for auto exteriors Labels for enclosures\external applications

Fascia panels and membrane overlays: Embossed key pads Brand fascia\ decorative panels High performance labels: Warning, caution and danger labels Electronic and electrical appliances Security labels: Tamper evidence label Bar coding labels In mold decorative labels: AC control switches with back lit Power window operation switch Hazardous warning switch Vehicle model identification name plate. Vision, Mission and Quality Policy:

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Vision: Our vision is to 220 by 2020, that means to reach 220 crores turnover by 2020.

Mission: The company aims to be the market leader in design and manufacture of self adhesive labels for engineering and industry and strives to bench mark its products with the very best available.

Quality Policy: Image Labels Pvt. Ltd., manufacture and supply self adhesive pressure sensitive labels and related activities, is committed to enhance customer satisfaction by supplying quality products on time, through continual improvement of process and restriction of hazardous substances in the organisation: Quest for excellence in every phase of activity and by all employees in the organisation apart from the excellence of its products and services it provides to customers, To earn the respect and regard of society through the achievement of excellence.

Nature of the Business Carried: The nature of the business carried on at Image labels is manufacturing of specialty pressure sensitive adhesive labels specific to the electronics, electrical and automobile industries. B N M I T School Of Management Studies Page 8

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Image Labels Private Limited is involved in manufacturing of specialty pressure sensitive adhesive labels made according to the customers specification. They import of raw materials from reputable suppliers known for their quality and leadership in the market such as 3M, GE, Autotype, Averu Dennison, Nitto, Sericol etc. and processed parameters are rigid to ensure a consistently high level of product quality and exports their products to Japan, Brazil, Philippines, USA.

OWNERSHIP PATTERN: Image Labels is a Registered Pvt. ltd. Company. Image Labels is a Partnership Firm started by four partners. They are: Mr. Sujan Nailady, Mr. Jayashankar, Mr. Gopi M. R. and Mr. Srinivasa Reddy. The directors share the profit and losses of the firm to the extent of shares held by them. The company is owned and jointly managed by the promoters of the company to the extent of the shares held by them. The partners are active partners. All the four partners take active participation in the smooth running of the business. Infrastructural Facilities: A sound infrastructure with an ability to adapt emerging technologies is the key for the success of any industry. Image Labels recognize this fact and have accepted it. Image Labels have in place state-of-the-art equipment to compliment their large B N M I T School Of Management Studies Page 9

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pool of knowledge workers. It is a perfect synergy which delivers only the best. Image Labels have a proven manufacturing process backed by good test equipment. Manufacturing facility covers a total work area of 60,000 sq. ft. clearly demarking the different product lines. The work force at Image Labels is exposed to quality assurance programs on a very regular basis. Testing equipment and quality assurance forms major part of the facility and their products are self-certified goods that can go in for assembly without the need for inspection at the customer end and add to their quality.

PROCUREMENT OF RAW MATERIALS: Only the very best of raw materials are used for production at Image Labels. They procure raw materials from market leaders such as 3M, GE, Nitto, Autotype, Avery Dennison and Sericol. Care is taken to strike a fine balance between production plans and Just-in-time deliveries. This is possible because of the in-house process capability, centralizing operations from art-work to die-cut. CANTEEN FACILITIES: The employees are provided with clean and hygienic canteen facility within the company premises. This facility is being provided to the employees at a rate of Rs. 250 per month. TRANSPORTATION FACILITIES: The employees working in various shifts are provided with transport facility. This includes pick up and drop to the company at regular intervals. OTHER FACILITIES: B N M I T School Of Management Studies Page 10

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State-of-the-art technology Process-Driven operations Company-wide tailored ERP system FIFO controlled storage In-house graphic design and pre-press In-house tool rooms for precision dies, tools and jigs and fixtures

ACHIEVEMENT/AWARD: ACHIEVEMENTS: Company is ISO 9001-2000 certificated. Member of SGIA (Specialty Graphics Imaging association) USA. Member of D&B (Don & Bradstreet).

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Provider of UL (Underwriters Laboratory) USA Components. Approved by RINA of Italy.

AWARDS: Quality Assurance award from L&T Komatsu in 2002. Quality Commitment award from APC. Best suppliers awards from Enercon Systems Pvt. Ltd. Quality Performance Recognition from Godrej & Boyce manufacturing Co. Ltd. Quality rating award from TVS Electronics in 2003. Certificate of appreciation from TVS Electronics Best supplier award from VEER-O-METALS Pvt. Ltd. Best supplier award from American Power Conversions in 2006.

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The area of operation is national. The Head Office of Image Labels is located at Vajarahalli, Off Kanakpura Main Road, Bangalore. The marketing concerns of the company are spread across: Pune in Maharashtra, Hyderabad in Andhra Pradesh, and, Chennai in Tamil Nadu.

EXPORTS: The company exports its products to various countries like, United Kingdom Netherland Taiwan United States of America Brazil Kuwait Dubai Philippines Japan

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WORK FLOW MODEL:
RECEIPT OF RAW MATERIALS CHECKING OF RAW MATERIALS

CUTTING OF RAW MATERIAL

EXPOSING

WHITE PRINTING

AIR DRYING

OVEN CURING

BLANKING & FORMING

FINAL INSPECTION & REPORT PACKING CHECKING REPORTS

DESPATCH

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Production process of labels follows the following steps: 1) Receipt of raw materials: The order for raw materials is placed as per the product specification and the purchase order given by the customer. 2) Checking of raw material: The raw material is checked by the Inspector and an inspection report is submitted, if the quality of the raw material meets the specified standard. 3) Cutting of raw material: The material is cut into the desired shape and specification as specified by the customer. The piece so cut is approved by the supervisor. The cutting blade is resharpened after every use. 4) Exposing: The film to be exposed to vacuum should be free from dust and scratches. The exposing time and air vacuum is set. 5) White printing: The racks are identified. The colour code as specified by the customer is identified and mixed in proportion to the quantity required. 6) Air drying: This step ensures that the material is free from scratches or dust. Preventive measures are taken to keep the racks and the storage clean and free from dust. 7) Oven curing: Temperature is set according to the requirement of the material. Digital reading is used to set the temperature and check list is prepared to note the changes, if any. 8) Blanking and forming: The power press is set at this stage. If there is any variation in the dimension, it is rectified during this stage. The first piece which is produced is approved and work instructions are given accordingly. 9) Final inspection and report: B N M I T School Of Management Studies Page 15

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The products are checked and a report is made if there are no errors found. If there are any errors with the dimension of the product or the printing matter is found to be incorrect, the pieces are rejected. Approval is given only if the pieces meet the work standard specified. 10) Packing: The products are packed as per the requirement of the customer. In case of export, the products are given three-coat packing to avoid any damage in transit. 11) Checking reports: The reports are checked before the despatch. This is done to avoid any discrepancy between the customers requirement and the products produced. 12) Despatch: All the reports are re-checked and re-counting of the products is done as per the invoice received from the customer. Then the products are despatched to the destination. In case of export, air transport is used. For sending the products within the country, road or rail transport is used.

MC KENSYS 7S FRAME WORK B N M I T School Of Management Studies Page 16

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The 7-S is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, they are Strategy; Structure; Systems; Style; Skills; Staff; and Shared Values. The 7S framework first appeared in The Art of Japanese Management by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time the Tom Peters and Robert Waterman were exploring what made a company excellent. The 7S model was formed at a meeting of the four authors in 1978. It went on to appear in In Search of Excellence by Peters and Waterman, and was taken up as a basic tool by the global management consultancy Mckinsey; sometime later it is called Mckinsey 7S Model or framework. The 7-S is distinguished into hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are determined by the people at work in the organization. Therefore it is more difficult to plan or influence characteristics of the soft elements.

HARD Ss:
Structure: Basis for specialization and co-ordination influenced by organisations

size. Strategy: Actions a company plans in response to unanticipated changes. System: Formal and informal procedures that support strategy and structure.

SOFT Ss:

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Style/culture: The culture of the organisation consists of organisation culture and management style. Staff: The human resources of the company. Skills: The distinctive competencies of the company. Shared values: Guiding concepts and fundamental ideas around which a company is built. CHART SHOWING MC KENSY 7-S FRAMEWORK:

STRUCTURE AT ILPL:

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STRATEGY AT ILPL:

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One of the strategy adopted at ILPL to increase their sales was the 3 crore strategy. If the sales of the companys product reach 3 crore in a month, the staff will get double their salary. Objectives of this strategy:
Increase the productivity.

Reduce rejection and idle time.

SYSTEM AT ILPL: E R P System Enquiry is received from customer. Based on enquiry product study report (PSR) is done. After PSR, Sample Production Chart (SPC) is generated with all the available data. The sample is produced as per the SPC and it is supplied to the customer with the Sample Invoice. Customer sends the approval which is scanned and entered in the ERP. The master card is generated which helps for preparing the job card for production process.

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Delivery dates are committed to the customers. Work order is issued to the production team for manufacturing process. Production dept prepares the job card for step wise process of production. After the production the materials undergo the final quality inspection. As per the date the finished products are billed and dispatched to the customers. Delivery Challan are also updated and the logistics department gets the acknowledgment of delivery. STYLE AT ILPL:
At ILPL, employees have a freedom to give suggestions to the top management. The company also recognizes the suggestions given by the employees and they recognize values, respect and celebrate the cultural differences and diversity of background and thought of its employees. The managers spend more time interacting with employees in various departments. The employees are fully committed to give their best possible performance and output under all favorable and unfavorable circumstances. It actively encourages employees to share their knowledge and learning. It treats all employees as greatest assets and respects the individual rights and dignities of all people. It is fully committed to people development process in a fair equitable and transparent manner. It believes in creating a healthy open environment for the employees, where free expression of views can take place across hierarchies.

STAFF OF ILPL:

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The staff refers to the human capital of the company. The following are the details of staff of ILPL. Middle level employees Lower level employees 60 475

SKILLS AT ILPL: Skill development: - This training is imparted to the employees who need to develop skills in their areas. This helps employees to adopt themselves to new technologies, reduce wastage, improve quality and increase the productivity. Fire fighting training: - A briefing about the fire fighting devices such as fire extinguishers, breathing apparatus set etc is done. They conduct fire fighting training so as to keep the employees ready whenever the need arises. Induction Training: - The Purpose of Induction period is to help a new employee to settle down quickly into the job by becoming familiar with the people, surrounding, the job profile, and business. First Aid Training ISO Training General Safety Training Supervisor Development Training. SHARED VALUES OF ILPL:

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Customer Focus: Companys strategies are driven by the needs of the customer. The success can be measured by the satisfaction achieved by the customer. Excellence: Company accord a high premium to maintaining superlative standards throughout the organization. Company encourages employees to come up with smarter ideas with the fastest possible time. Creativity: It is the key to companys value system in innovation and originality. Company recognizes and has a high regard for individual expression and creative freedom to provide customer satisfaction. Integrity: Company is strictly observing ethical standards through editorial independence and creative expression, in order to earn the trust of viewers and subscribers.

SWOT ANANLYSIS SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that

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objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. STRENGHTS OF ILPL: Located in Bangalore, a very industrialized place. Fully automated machines which reduce the rejections. This company is the largest in the southern area. Has created market dominance. Maintains a high quality of its products (ISO 9001 - 20008). Most of the clients are large corporate companies and hence their need for the product is high. The finished products can be suitably changed according to the need of the customers as the designs are made by the company using softwares. Has reputed customers like APC, L&T, GE, HERO HONDA. Direct import / Sourcing raw materials.

Long term relationships with key suppliers such as 3M, Nitto, GE, Autotype, Avery Dennison, Sericol and Lintec.

Responsive development team. Have good management and good support from employees. Have good brand name in this printing and label sector.

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Highly skilled and creative R&D department. Has excellent working environment. WEAKNESS OF ILPL: Skilled labour problem. Problems in availability of raw materials. No frequent transportation for the workers. Small quantities of the product such as labels required by clients cannot be made as the company is fully automated. There is a normal practice of rejection of finished goods to an extent of approximately 10%. Efforts should be made to reduce this percentage so that the profitability of the company increases The company is not fast on advertisement as a means for increasing its sales. The company has a very weak web site which has to be updated.

OPPORTUNINITIES FOR ILPL: The company has huge opportunities to enter foreign market. Company is getting new customers and orders in bulk. Adapting to new technologies. The company can increase its sales because of its market dominance and quality.

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The company does not many competitors; hence the opportunity for growth is tremendous.

THREATS TO ILPL: Having big competition from Johnson & Johnson and S.J.S. Enterprises. Changing Government policies. Increase in raw material prices.
BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH, 2009
FIGURES FOR THE YEAR ENDED 31.03.2009 FIGURES FOR THE YEAR ENDED 31.03.2008

PARTICULARS I 1 SOURCES OF FUNDS: Shareholders Funds A) Capital B) Reserves and Surplus Loan Funds A) Secured Loans B) Unsecured Loans Deferred Tax Liability TOTAL II 1 APPLICATION OF FUNDS: Fixed assets A) Gross Block B) Depreciation Block C) Net Block

SCHEDULE NO.

A B C D L

14000000.00 28521783.34 112854538.09 19245993.51 2924595.00 177546909.94

1800000.00 51035412.24 84189897.34 15224866.05 3294651.00 155544826.63

190545386.65 43877275.39 146668111.26

159792179.34 23776950.05 136015229.29

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1096581.09 2 3 Investments Net Current Assets A) Inventories B) Sundry Debtors C) Cash & Bank Balances D) Advances & Deposits Current Liabilities A) Duties & Taxes B) Sundry Creditors C) Other Liabilities & Provisions Net Current Assets (A-B) Total Contingent Liability 31682855.00 28796566.72 5965993.11 11472735.05 77918149.88 1318850.39 42678541.90 4138540.00 48135932.29 29782217.59 177546909.94 190800.00

1033581.09 18784740.00 34409043.62 4969265.52 10712576.52 68875625.58 7132587.97 40199838.37 3047183.00 50379609.34 18496016.24 155544826.62 174800.00

F G H I J

MANUFACTURING TRADING & PROFIT & LOSS A/C FOR THE YEAR ENDED 31.03.2009
PARTICULARS SCHEDULE NO FIGURES FOR THE YEAR ENDED 31.03.2009 193778012.63 130494540.85 63283471.78 4998416.38 68281888.16 E Administrative, Selling & Distribution Expenses Profit Before Interest Financial Charges 4 37253772.93 31028115.23 20831128.79 FIGURES FOR THE YEAR ENDED 31.03.2008 224406272.36 155925010.92 68481261.44 5711619.87 74192881.31 37703868.50 36489012.81 8115440.35

A B C D

Sales Cost of Goods Sold Gross Profit (A-B) Other Income

1 2 3

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G H I L

Profit Before Depreciation Depreciation Profit Before Tax Provision For Income Tax Deferred Tax Profits Before Tax

10196986.44 20100325.34 -9903338.90 410290.00 -10313628.90 00 -10313628.90 00 -10313628.90

28373572.46 8104338.28 20269234.18 9379778.00 10889456.18 842364.00 10047092.18 1088945.62 8958146.56

M K

Dividend Dividend Distribution Tax Surplus After Dividend Payouts Less: Transferred to Statutory Reserve Surplus Transferred to Profit & Loss A/C

GENERAL INTRODUCTION

MOTIVATION:Motivation is derived from the word Motive. A motive is an inner state that energises, activates or moves and directs or channels behavior towards goals.

DEFINITION OF MOTIVATION: According to Encyclopedia of Management, Motivation refers to the degree of readiness of an organisation to pursue some designated goal and implies the determination of the nature and locus of the forces, including the degree of readiness.

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According to Robert Dubin, Motivation is the complex of forces starting and keeping a person at work in an organisation.

IMPORTANCE OF MOTIVATION: High performance: Motivated employees will put maximum efforts for achieving organisational goals. The untapped reservoirs of physical and mental capabilities are tapped to the maximum extent. Better performance will also result in higher productivity. Low employee turnover and absenteeism: When the employees are satisfied with their jobs and they are well motivated with monetary and non-monetary incentives, they will not leave the job. The rate of absenteeism will also be low because they will try to increase their output. Better organisational image: Those organisations which offer better monetary and non-monetary facilities to their employees will have a better image.

Better industrial relations: A good motivational system will create job satisfaction among employees. The employment will offer the employees better service conditions and various other incentives.

TYPES OF MOTIVATION:There are two ways by which people can be motivated. They are: 1. Positive motivation or pull-mechanism

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2. Negative motivation or push-mechanism. 1. Positive motivation: People are said to be motivated positively when they are shown a reward and the way to achieve it. Such a reward may be financial or non-financial. Monetary incentives provide the worker with a better standard of life while non-monetary incentives satisfy the ego of a man. Positive motivation seeks to create an optimistic atmosphere in the enterprise.

Monetary motivators include: Incentives Pay in conformity with market trend Skill-based reward system Merit pay Employee stock option Performance bonus.

Non-Monetary motivators include: Awards: Trophies, Plaques, Citations Tokens: Vacation trips, Gifts like Watches or Tie-pins Club membership Medical benefits Group life insurance Retirement benefits.

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2. Negative motivation: Negative or fear motivation is based on force or fear. Fear causes employees to act in a certain way. In case, they do not act accordingly then they may be punished with demotions or lay-offs. The fear acts as a push mechanism. Fear creates frustration, a hostile state of mind and an unfavourable attitude towards the job which hinders efficiency and productivity. THEORIES OF MOTIVATION:There are several theories on motivation. The significant theories among them are: Maslows theory of hierarchy of needs Herzbergs two-factor theory Vrooms expectancy theory Alderfers ERG theory The Porter and Lawler model of expectancy theory Mc Gregors theory X and Y Carrot and stick approach theory Acquired needs theory Equity theory of work motivation.

MASLOWS THEORY OF HIERARCHY NEEDS: According to Maslow, human needs form a hierarchy, starting at the bottom with the physiological needs and ascending to the highest need of self-actualisation. He has categorized human needs into five categories. He says when one set of needs are satisfied, they no longer work as motivators as a man seeks to satisfy the next higher

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level needs. There is a priority of certain needs over others. The importance of needs will influence the level of motivation.
MASLOWS NEED HIERARCHY Self Actualisation

Esteem Needs Social Needs

Security Needs Physiological Needs

The need hierarchy: 1) Physiological Needs: These are the basic necessities of human life-food, water, warmth, shelter and sleep. Maslow says that until these needs are satisfied to the required level, man does not aim for the satisfaction of the next higher level of needs. In organisation context, these needs include basic needs like pay, allowance, incentives and benefits. 2) Security or Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of food, job or shelter. When physiological needs are satisfied, man starts thinking of the way by which he can continue to satisfy these safety needs. In organisation context, these needs include conformity, security plans or membership in unions. 3) Social or Affiliation Needs:

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When the physiological and security needs are satisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for the association of other human beings and strives hard to be accepted by the group. Social needs at work include human relations, formal and informal work groups. 4) Esteem Needs: These needs are power, prestige, status and self-confidence. These needs make people aim high and make them achieve something great. These needs for employees include status symbol, awards and promotions. 5) Self-Actualisation Needs: This is the highest need in the hierarchy. This refers to the desire to become what one is capable of becoming. This refers to the needs which help an individual to develop his potentialities. He tries to do whatever he can and has a sort of self-development. The selffulfillment needs give satisfaction to the person concerned and are good for the society also. Maslow has categorized the needs in order of priority. An individual spends money from one need to another. When one need is satisfied then the other becomes the motivator. All the needs are interdependent. It is not necessary that only one need is satisfied at one time. A person may move to other needs even if earlier needs are not fully satisfied. When the peak of a need passes then it causes to be a motivator. MORALE: DEFINITION OF MORALE: According to Edwin B. Flippo has defined morale as, a mental condition or attitude of individuals and groups, which determine their willingness to cooperate. Good morale is evidenced by employee enthusiasm, voluntary conformance with regulations and orders and willingness to cooperate with others in the accomplishment of an organisations objectives. Poor morale is evidenced by surliness, insubordination, a feeling of discouragement and dislike of the jos, company and associates. According to Michael J. Jucius, Morale is a state of mind or of willingness to work which in turn affects individuals and organisational objectives.

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IMPORTANCE OF MORALE: High level morale contributes to sound superior-subordinate relations. High morale leads to employee satisfaction. High level morale and employee satisfaction reduces grievances. High morale leads to employee commitment to industrial peace by avoiding the occurrence of industrial disputes. Morale helps the employees to build teams easily to maximize their contribution. It also results in reduction in absenteeism and labour turnover.

FACTORS AFFECTING MORALE: The level of satisfaction with job standards. Workers attitude towards the company and supervisor. The level of consideration the supervisor shows to his subordinates. The work load and the work pressure level. The treatment of individuals by the management. The level of workers pride in the company and its activities. The level of workers satisfaction with salary. Worker satisfaction with the progress and opportunities for further progression. The workers attitude towards fellow workers. Workers perception of rewards system. The employees age and educational level. SIGNS OF HIGH MORALE:

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A tendency for the group to hold together not merely as a result of external pressures but rather through internal cohesiveness. A lack of tendency of its members to divide into sub-groups. An ability of the group to adapt itself to changing circumstances and to handle internal conflicts. A feeling of belongingness and togetherness among the members of the group. A commonness of goals among the members of the group. A desire on the part of the members to retain the group and a regard for its positive value. A passive attitude of the members with respect to the objectives of the group and to its leaders.

WARNING SIGNS OF LOW MORALE:

High rate of absenteeism.

Tardiness. High labour turnover. Strikes and sabotage. Lack of pride in work. Wastage and spoilage.

FACTORS TO IMPROVE MORALE: Two way communication:

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There should be proper communication between management and employees. All policies and programmes should be explained to the employees through down ward communication. Proper incentive system: There should be proper system for monetary and non-monetary benefits for the employees. The employees showing better performance should be given incentives. Human relations approach: This approach suggests that employees should be treated as human beings. Their feelings and emotions should be given due weightage. The contribution of every employee to the organisation should be recognised. Welfare schemes: There should be proper welfare schemes for the employees and their families like housing facilities, medical facilities, school facility for the children, recreation facility and social security. All these measures will develop positive attitudes in employees. Participation in management: Workers should be made a part of management by opting them in decision making bodies. It will encourage industrial democracy in the organisation. Improve workers training: The workers should be given proper training so that their performance on jobs is better. This will give satisfaction and pleasure for working on their jobs.

RESEARCH DESIGN

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STATEMENT OF THE PROBLEM: The study focused on the following aspects at Image Labels Pvt. Ltd.: How is the overall morale of the company? Are the workers motivated to achieve more than their targets? In what way the workers like to be rewarded?

PROJECT TITLE: STUDY ON THE LEVEL OF MOTIVATION AND MORALE OF THE EMPLOYEES AT IMAGE LABELS PVT. LTD.

OBJECTIVES OF THE STUDY: To assess the satisfaction level of employees pertaining to the present motivation methods. To study how the employees like to be rewarded- monetary or non- monetary benefits. To know whether the individuals are willing to work in groups. To know the overall morale at the company.

SCOPE OF THE STUDY: Subject scope: The study is confined only to know the level of satisfaction of the employees towards the motivation techniques and the morale at Image Labels Pvt. Ltd.

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Geographical scope: The study was conducted considering the employees at Image Labels Pvt. Ltd which is located in Bangalore.

METHODOLOGY: The study takes input from both primary and secondary sources of data. The study is mainly descriptive which is aimed at fact finding.

SOURCES OF DATA: Secondary data Primary source

SECONDARY DATA: Company website. Journals. Employee data maintained by the HR department.

PRIMARY SOURCE: Primary data is originated by research for specific purpose. The primary data has been collected through structured questionnaire. A report is prepared depending on the response and information collected.

SAMPLE DESIGN:

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Study focus: The study is focused only on the employees at Image Labels Pvt. Ltd. Sample units: Employees were selected at random from various departments. Sample size: 100 employees were selected as sample for the study. Sampling technique: Convenience sampling method is used.

RESEARCH INSTRUMENTS:

QUESTIONNAIRE:

It is a research instrument consisting of a series of structured questions and prompts at data collection from the respondents. Questionnaire has an edge over other methods of survey as they are comparatively less expensive, they do not require much effort as interview or observation method and has a set of standardized answers that make it easy to compile data from a questionnaire.

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Questionnaires are limited by the fact that the respondents must be able to read the questions and respond to them. Questionnaire is frequently used quantitative marketing research tool. They are widely used as a tool to collect wide range of information from a large pool of respondents. Good questionnaire is essential for the success of any survey or research.

TYPES OF QUESTIONS USED: Multiple choice question: Respondents have several options to choose from. Likert scale is used as a tool for measuring the responses. Close ended question: Respondents answers are limited to the options provided. Most of the questions used in survey are close ended questions. Open ended question: No options were provided. Respondents could fill in what they found to be applicable. Question 21 and 22 were open ended questions in the questionnaire.

LIMITATIONS OF THE STUDY: The study is based on the response received from the employees at Image Labels. Analysis of the data obtained from questionnaire is done with the assumption that the respondents have given accurate information.

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This study holds significant only in the present situation (time is a limiting factor). The conclusions drawn are subjective to researchers knowledge.

DATA ANALYSIS TOOLS: Tables. Graphs.

1. Table showing the experience of employees. Particulars 0-2 years 2-4 years Above 4 years Total
(Source: Primary Data)

Number of respondents Percentage of response 50 20 30 100 50% 20% 30% 100%

1. Graph representing table 1.

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Experience
0-2 years 2-4 years Above 4 years

30% 50% 20%

(Source: Table1)

Analysis: 50% of the employees have work experience of 0-2 years. 30% of the employees have work experience of 2-4 years. 20% of the employees have work experience of above 4 years.

Interpretation: The data shows that majority of the employees have been in the company from 0-2 years. 2. Table showing motivation of the employees to join ILPL. Particulars Fringe benefits Salary Opportunity for growth Other reasons Number of respondents 0 20 60 20 Percentage of response 0% 20% 60% 20%

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Total
(Source: Primary data)

100

100%

2. Graph representing table 2.

Graph2
100% 0% Fringe benefits Salary Opportunity for growth Other reasons

Graph 2

(Source: Table 2)

Analysis: 20% of the respondents have joined the company for salary. 60% of the respondents have joined the company for the opportunity to grow. 20% of the respondents have joined the company for other reasons. Interpretation: Majority of the respondents have joined the company due to opportunity to grow. 3. Table showing the satisfaction of employees towards the benefits received. Particulars Yes Number of respondents 76 Percentage of response 76%

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No Total
(Source: Primary data)

24 100

24% 100%

3. Graph representing table 3.

Graph3
Graph 3

76% 24% Yes No

(Source: Table 3)

Analysis: 76% of the respondents are satisfied with the benefits they receive at ILPL. 24% of the respondents are not satisfied with the benefits they receive at ILPL. Interpretation: The data provides us with the information that majority of the employees are satisfied with the benefits they receive at the company.

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4. Table representing the respondents awareness of the term motivation. Particulars Yes No Total
(Source: Primary data)

Number of respondents 100 0 100

Percentage of response 100% 0% 100%

4. Graph representing table 4.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes

100%

0%

No

Graph 4

(Source: Table 4)

Analysis: 100% of the respondents are aware of the term motivation. Interpretation:

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The data provides us with the information that all the respondents are aware of the term motivation and hence they can be motivated using either monetary or non-monetary benefits.

5. Table representing the pattern of motivation followed in ILPL. Particulars Monetary benefits Non-monetary Both Total
(Source: Primary data)

Number of respondents 52 24 24 100

Percentage of response 52% 24% 24% 100%

5. Graph representing table 5.

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Graph5

24% Monetary 52% 24% Non-m onetary Both

(Source: Table 5)

Analysis: 52% of the respondents have said the pattern of motivation is monetary. 24% of the respondents have said the pattern of motivation is non-monetary. 24% of the respondents have said that both monetary and non-monetary benefits are received. Interpretation: Majority of the respondents say the pattern of motivation followed is monetary in the company. 6. Table showing respondents perception on motivation leads to higher performance. Particulars Strongly disagree Disagree Neither agree nor disagree Agree Number of respondents 0 2 4 56 Percentage of response 0% 2% 4% 56%

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Strongly agree Total
(Source: Primary data)

38 100

38% 100%

6. Graph representing table 6.

Graph6
Strongly disagree Disagree Neither agree nor disagree

56%

Agree

Strongly agree

38%

0%

2%

4% Graph 6

(Source: Table 6)

Analysis: 38% of the respondents strongly agree that effective motivation leads to higher performance. 56% of the respondents agree that effective motivation leads to higher performance. 4% of the respondents neither agree nor disagree on the point. 2% of the respondents disagree that effective motivation can lead to higher performance. Interpretation:

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The data provides us with the information that majority of the respondents agree that effective motivation can lead to higher and better performance. 7. Table representing satisfaction of the employees towards the motivation system. Particulars Yes No Total
(Source: Primary data)

Number of respondents 80 20 100

Percentage of response 80% 20% 100%

7. Graph representing table 7.

Graph7
Graph 7

80%

20% Yes No

(Source: Table 7)

Analysis: 80% of the respondents are satisfied with the companys motivation system. 20% of the respondents are not satisfied with the companys motivation system.

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Interpretation: Majority of the respondents are satisfied with companys present motivation system.

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8. Table representing employees satisfaction towards pay level at ILPL compared to other similar organisations. Particulars Very bad Bad Satisfactory Good Very good Total
(Source: Primary data)

Number of respondents 0 18 34 36 12 100

Percentage of response 0% 18% 34% 36% 12% 100%

8. Graph representing table

Graph8
Graph 8

34%

36%

18% 12% 0% Verybad Bad Satisfactory Good Verygood

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Analysis: 18% of the employees are unhappy with the pay levels as compared to other organisations. 34% of the employees are satisfied with the pay levels as compared to other organisations. 36% of the employees are happy with the pay levels as compared to other organisations. 34% of the employees are very happy with the pay levels as compared to other organisations. Interpretation: The data provides us with the information that the respondents are satisfied with the pay level at ILPL as compared to other similar organisations. 9. Table representing employees satisfaction with the employee review system. Particulars Yes No Total
(Source: Primary data)

Number of respondents 82 18 100

Percentage of response 82% 18% 100%

9. Graph representing table 9.

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Graph 9

No

18%

Graph 9

Yes

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

(Source: Table 9)

Analysis: 82% of the respondents are satisfied with the employee review system. 18% of the respondents are unhappy with the employee review system. Interpretation: Majority of the respondents are satisfied with the employee review system at ILPL. 10. Table showing awareness of the employees regarding the goals, objectives and responsibilities of their job. Particulars Yes No Total
(Source: Primary data)

Number of respondents 100 0 100

Percentage of response 100% 0% 100%

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10. Graph representing table 10.

Graph10
120% 100% 80% 60% 100% 40% 20% 0% Yes 0% No Graph 10

(Source: Table 10)

Analysis: 100% respondents are aware of the goals, objectives and responsibilities that are a part of their work. Interpretation: The data provides us with the information that all the respondents were aware of the goals, objectives and responsibilities that are a part of their work in ILPL. 11. Table showing whether the motivation techniques help in reaching organisational goals. Particulars Yes No Total
(Source: Primary data)

Number of respondents 86 14 100

Percentage of response 86% 14% 100%

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11. Graph representing table 11.

Graph11

14%

86%

Yes No

(Source: Table 11)

Analysis: 86% of the respondents feel that the present motivation techniques help them to reach the organisational goals. 14% of the respondents feel that the present motivation technique does not help them to reach the organisational goals. Interpretation: The data provides us with the information that majority of the respondents are able to reach the oganisational goals owing to the motivation techniques used in ILPL.

12. Table representing how frequently the employees and their manager discuss motivation techniques and reviews.

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Particulars Monthly Quarterly Yearly Total
(Source: Primary data)

Number of respondents 60 32 8 100

Percentage of response 60% 32% 8% 100%

12. Graph representing table 12.

Graph12
Graph 12

60%

32%

8% Monthly

Quarterly

Yearly

(Source: Table 12)

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Analysis: 60% of the respondents say that they discuss the motivation techniques with their manager monthly. 32% of the respondents say that they discuss the motivation techniques with their manager every quarter. 8% of the respondents say that they discuss the motivation techniques with their manager on a yearly basis. Interpretation: The data provides us with the information that the respondents discuss motivation techniques with their manager on a monthly basis.

13. Table showing recognition or reward given to employees based on their performance. Particulars Yes No Total
(Source: Primary data)

Number of respondents 48 52 100

Percentage of response 48% 52% 100

13. Graph representing table 13.

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Graph13
53% 52% 51% 50% 49% 48% 47% 46% Yes No Graph 13

(Source: Table 13)

Analysis: 48% of the employees feel they are recognized or rewarded for their contribution in the company. 52% of the employees feel their contribution to the company is nor recognized nor rewarded.

Interpretation: The data provides us with the information that most of the respondents feel they are not recognized for their contribution in the company. 14. Table showing whether the present motivation technique analyses strengths and weaknesses of the employees. Particulars Yes Number of respondents 88 Percentage of response 88%

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No Total
(Source: Primary data)

12 100

12% 100%

14. Graph representing table 14.

Graph14
Graph 14

No Yes

12%

88% 0% 20% 40%

60%

80%

100%

(Source: Table 14)

Analysis: 88% of the respondents say that the present motivation system analyses their strengths and weaknesses. 12% of the respondents say that the present motivation system does not analyse their strengths and weaknesses. Interpretation: Majority of the respondents feel that the present motivation system analyses their strengths and weaknesses.

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15. Table showing whether manager or supervisor give frank feedback to their subordinates. Particulars Yes No Total
(Source: Primary data)

Number of respondents 90 10 100

Percentage of response 90% 10% 100%

15. Graph representing table 15.

Graph15
10%

Yes No 90%

(Source: Table 15)

Analysis: 90% of the employees feel that their manager or supervisor gives frank feedback about their work.

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10% of the employees feel that their manager or supervisor does not give frank feedback about their work. Interpretation: Majority of the respondents say that their manager gives them frank feedback about their work.

16. Table showing whether the employees are provided with training in the areas they lack expertise. Particulars Yes No Total
(Source: Primary data)

Number of respondents 80 20 100

Percentage of response 80% 20% 100%

16. Graph representing table 16.

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Graph16
Graph 16

80% 60% 40% 20% 0% Yes No 20% 80%

(Source: Table 16)

Analysis: 80% of the respondents agree that they were provided with training and development programs. 20% of the respondents say they are not provided with training and development programs in the areas the lack expertise. Interpretation: Majority of the respondents have said that they are provided with training and development programs in the areas the lack expertise.

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17. Table showing whether the employees are motivated enough to achieve more than their targets. Particulars Yes No Total
(Source: Primary data)

Number of respondents 76 24 100

Percentage of response 76% 24% 100%

17. Graph representing table 17.

Graph17

24% Yes No

76%

(Source: Table 17)

Analysis: 76% of the respondents say they are motivated to achieve more than their set targets. 24% of the respondents say they do not feel motivated enough to achieve more than their set targets.

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Interpretation: The data provides us with the information that majority of the respondents are motivated to achieve more than their targets.

18. Table showing the way in which the employees like to be rewarded. Particulars Monetary Non-monetary Both Total
(Source: Primary data)

Number of respondents 40 50 10 100

Percentage of response 40% 50% 10% 100%

18. Graph representing table 18.

Graph18
Graph 18

50% 40% 30% 20% 10% 0%

40%

50%

10% Monetary Non-m onetary Both

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(Source: Table 18)

Analysis: 40% of the respondents say that will be motivated to perform better with monetary rewards. 50% of the respondents say that will be motivated to perform better with non-monetary rewards. 10% prefer to be rewarded with both monetary and non-monetary rewards. Interpretation: Majority of the respondents appreciate non-monetary rewards.

19. Table showing the overall morale at the company. Particulars Good Satisfactory Bad Total
(Source: Primary data)

Number of respondents 72 28 0 100

Percentage of response 72% 28% 0% 100%

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19. Graph representing table 19.

Graph19
Bad 0%

Satisfactory

28%

Graph 19

Good

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

(Source: Table 19)

Analysis: 72% of the respondents feel that the overall morale of the company is good. 28% of the respondents feel that the overall morale of the company is satisfactory. None of the respondents feel that the overall morale is bad. Interpretation: The overall morale of the company is good as said by the respondents.

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20. Table showing whether the employees have attended an interview of another company in the past six months. Particulars Yes No Total
(Source: Primary data)

Number of respondents 0 100 100

Percentage of response 0% 100% 100%

20. Graph representing table 20.

Graph20
100% 50% 0% Yes No 100% Graph 20

0%

Analysis: None of the respondents have attended an interview of another company in the past six months. Interpretation:

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The data shows that all the employees are loyal to the organisation as none of the respondents have attended any interview of another company.

FINDINGS AND OBSERVATIONS:

Majority of the respondents are working in Image Labels form 0-2 years. 30% of
the respondents have working experience of more than 4years. Majority of the respondents have joined ILPL from a career point of view. Majority of the respondents have chosen opportunity to grow over fringe benefits and salary. Other reasons to join the company include- family problems, wanted a job for earning a livelihood and reputed company. Most of the respondents are satisfied with the benefits they receive at ILPL. All the respondents are aware of the term motivation. Hence it can be concluded that the employees can be motivated to perform better. The pattern of motivation followed is giving monetary benefits. Monetary benefits are given in the form of incentives to the employees. The non-monetary benefits given are word of appreciation by the managers to their subordinates. Majority of the respondents agree with the fact that effective motivation can lead to higher performance and productivity. Hence if provided with better incentives, they can perform their work with more efficiency. Most of the respondents are satisfied with the present motivation system followed by the company which is providing monetary benefits. 20% of the respondents are unsatisfied with the motivation system and feel it needs to be improved.

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Majority of the respondents are satisfied with the pay package in ILPL as compared to other similar organisations. Few of the respondents feel other companies pay higher salary than ILPL. Most of the respondents are satisfied with the employee review system which is conducted monthly. All the respondents are aware about the goals, objectives and responsibilities which are a part of their work. These values were communicated to them during the induction programme. Majority of the respondents feel that the motivation techniques help them in reaching organisational goals. The respondents feel they are not being recognized for their work in the organisation. Their contribution to the organisation is going unrecognized. Majority of the respondents say that the present motivation techniques analyses their strengths and weaknesses. They can work on the said weaknesses and perform better in future. Most of the respondents have said that their manager or supervisor give them frank feedback about their work. The supervisors critically evaluate the work done by their subordinates. Majority of the respondents have said that they have undergone training and development programmes in the areas they lack expertise. Training was mainly provided during induction.

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Majority of the respondents are motivated enough to achieve more than their targets. This shows that the employees at ILPL have high regards and respect towards the company. Most of the respondents prefer non-monetary benefits than monetary benefits. Non-monetary benefits like issuing of certificates for the work done by them would make them happier. The overall morale in the company is good. There is excellent co-ordination and team spirit among the employees. The company is like a family to them and the attachment towards the company is tremendous. None of the respondents have attended an interview of another company in the past 6 months. This shows the loyalty and affection of the respondents towards ILPL.

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RECOMMENDATIONS:

The employees feel that non-monetary benefits like issuing of certificates or presenting of awards during the companys annual meetings will be more motivating than monetary benefits like providing incentives. Their morale and level of job satisfaction will boost up. This will also increase their level of satisfaction towards the motivation techniques.

The employees contribution towards the organisation must be recognized and appreciated. Employees who have completed 5 years of service in the company must be honoured and their contribution must be recognized in a well organised meeting.

Few of the respondents have complained of heavy work load. The work load must be evenly distributed to all the employees of the department as completion of the work will be faster through this. This will also enhance team spirit in the department. The amount of work which an individual can handle without exerting much pressure must be allotted to him/her. Few changes should be done in the work place. Few of the respondents have said that a foul smell is emitted by the machines during its operation. Provision for

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proper ventilation should be made to ensure smooth flow of air to all the departments, especially the production department.

The motivation system should be in such a way that it not only increases organisational effectiveness but also enhances every individuals professional growth.

Yearly increments should be provided to employees. The employees are not being provided with yearly increments. This is cause of dissatisfaction among them.

Provisions should be made for inter-department transfer as most of the employees have been working in the same department from many years. This would also enhance the employees skills and knowledge about various departments.

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CONCLUSION:

The practices at Image Labels are satisfactory, but a little improvement will help them in achieving higher success in the business.

Money is not the only factor that can motivate individuals to perform better. The company has to adopt non-monetary ways of motivating the employees. Appreciation of the work done by the employees by the top level management will boost the morale of the employees. The employees will be enthusiastic to achieve more than their targets if such recognition is given to them.

The survey was conducted to find out the level of motivation of the employees and morale. From my study I can conclude that the employees are motivated enough to achieve their targets. They are extremely happy with their colleagues and they enjoy the organisation environment.

Image Labels has well framed personnel policies which are favourable to the employees. It can be concluded with the positive response gained from the respondents of the survey.

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