Final Research Project ReportOn

“A STUDY ON THE EFFECTIVNESS OF GRIEVANCS

MANAGEMENT SYSTEM IN TTK HEALTH CARE LTD”

For Submitted for Partial Fulfillment of Award Of“Masters of Business Administration”

(MBA -2008-2010)

Under The Guidance of: Submitted By:

Mr.UTTKARSH SHUKLA ABHISHEK AGNIHOTRI ROLL.NO. 0844070401

Naraina Vidya Peeth Management Institute

Gangagunj, Panki, Kanpur-208020

ACKNOWLEDGEMENT

My project work has been successfully accomplished due to cooperative efforts of

many people. I would like to pay my sincere gratitude and thanks to those people,

who directed me at every step in the project work.

I would like to express my sincere gratitude to Mr. UTTKARSH SHUKLA (Project guide) for

constantly guiding me and acting as my mentor during the course of my project and

tackling variety of hurdles with implicit patience throughout my research project and

whose deep involvement and interest in the project infused in me great inspiration

and confidence in taking up this study in right direction. Without his overall guidance

and help the project may not have seen to be completed.

In the end, i also want to thanks my friends for their support and help during the

Project.

Submitted by:ABHISHEK AGNIHOTRI

PREFACE

Every study is incomplete without having a well plow and concrete exposure,

concrete exposure, of the project. Management studies are not exception that

scopes , of the project at this level are very wide ranging .

Student of management are successfully processed and refined through the

mean of final report so that they may have a complete exposure to present scenario.

This final report has been taken as a part of M.B.A. Degree Course from N.V.P

affiliated to U.P Technical University, Luck now.

The purpose of the study is to use and apply our academic knowledge gained

during the curriculum in getting valuable insight of corporate culture with all its

attendants completes.

I have done a lot of hard work despite of all my sincere efforts. This is

possibility that there may be some are as which may remain in studied for that

apologies in advance. I once again think to all those who help one directly or indirectly

in preparing his project report.

Submitted by:ABHISHEK AGNIHOTRI

INDEX

               Topics                                                 Page No.

     

INDUSTRY profile………………………………………..5

. Introduction…………………………………………6-23

Company profile………………………………………….24-38

Product & service profile………………………………...39-45

Objective of study  ...………………………………….....46

Need of the study………………………………………...47

Scope of the study……………………………………….48

Limitation of the study……………………………………49

Riev of literature………………………………………….50-64

Research methodology …………………………………65

Method apply……………………………………….66-67

Research process………………………………….68

Data  analysis…………………………………………….69-79.

Recommendation ……………………………………….80

Bibliography…………………………………………………….81

INDUSTRY PROFILE

1.1. Introduction

The health care industry is considered an industry or profession which includes peoples'

exercise of skill or judgment or the providing of a service related to the preservation or

improvement of the health of individuals or the treatment or care of individuals who are

injured, sick, disabled, or infirm. The delivery of modern health care depends on an expanding

group of trained professionals coming together as an interdisciplinary team.

Health care industry plays an important part in the economy of a country. The health care

industry determines the GDP or the gross domestic product of any country. It also determines

exports status, employment, capital investment etc. Health care segment provides employment

openings to many individuals directly associated with the health care sector or other associated

sectors, related to the health care industry in some way or the other. Efforts are usually made to

keep the dollars rolling within the country economic set up. A business dealing in health care

adds to the already existing economy by buying utility programs, by paying taxes for property

etc.

The health care industry consists of the following:

Dentists and doctors

Protective care and nursing

Pharmacies

Allied medical, health services

Hospitals

The present era is likely to be dominated by expansion of demands in the market, increasing

prices and increasing awareness among the customers. Such changes will trigger a change in

the health care industry scenario for the better

1.2. Growth of Healthcare Industry

The fledgling healthcare industry in India is set to become a mammoth sized sector. A latest

study by global management consultants McKinsey predicts that India's healthcare industry

will reach a staggering USD 190 billion mark in less than two decades.

  The study reveals that health care consumption in India will grow at 10.8% annually to reach

USD 190 billion from its present size of just USD 25 billion.

 The report says increasing health awareness among the youth, metropolitan lifestyle and

increasing percentage of household expenditure on health are the key reasons for this growth.

 The McKinsey report says that rural healthcare is also set to show strong growth and will

account for almost half of the total consumption on healthcare in the country.

 Industry experts say that could be the reason for companies like Wockhardt, Apollo and even

Reliance Industries to make their early moves in the rural health care sector.

 While a cardiac procedure costs anything between USD 40,000-60,000 in the US, in India it

would cost you a mere USD 3000-6000. Also, the success rate of cardiac bypass in India is

98.7% against 97.5% in U.S. This is also making India a popular destination for tourists to

avail of the health services.

1.3. Healthcare Industry Trends

Health care industry trends manifest an upward growth but several areas need to be attended to

for enhancing health care services for the common man.

Different countries like Indonesia, Russia, Mexico, Brazil, India, Turkey and China comprise

approximately 1/5th of the worldwide health care sales. Health care industry trends also

suggest that the medical related conditions in the developing countries which are chronic in

nature will be similar to the ones existing in the developed countries. In order to meet

international standards, the existing health care industry is required to alter the mode of

operation for generation of higher revenue and greater contribution to the Gross Domestic

Product of the country.

Facts about the health care industry trends:

The cost related to health care was seen to rise in the 90s. Americans not possessing any

health care coverage or any kind of health insurance attained the 42 million mark.

It has been anticipated that the elderly sick people will impose considerable stress on the

health care sector of US.

The total number of different health care programs and different health care insurance

coverages are likely to increase in the coming years. The health care industry trends also

show that it is likely to attain 70.2 million in the year 2025.

The health care industry trends also indicate that the expenses for preventive measures is

negligible as compared to the amount spent on treating chronic diseases which accounts

for 70% of the fund used for health care.

Trends suggest that there are very less Americans (around 23%) who make an effort to

prevent any lifestyle diseases by consuming the optimum level of vegetable and fruits.

Health care industry trends suggest changes in the

following spheres:

The companies manufacturing medicines provide health care plans

More stress is to be laid on prevention than treatments

Sufficient supply of the essential health care products should be made available to the

consumers to meet the demand of the health care industry.

Health care industry trends manifest an upward growth but several areas need to be attended

for enhancing health care services for the common man.

1.4. Industry Snapshot

The global medical industry is one of the world's fastest growing industries,

absorbing over 10% of gross domestic product of most developed nations. It constitutes of

broad services offered by various hospitals, physicians, nursing homes, diagnostic laboratories,

pharmacies and ably supported by drugs, pharmaceuticals, chemicals, medical equipment

manufacturers and suppliers.

The medical and health care industry provides enormous employment opportunities to choose

from. Apart from using the services of medical professionals, this industry also utilizes the

expert services of public policy workers, medical writers, clinical research lab workers, IT

professionals, sales/marketing professionals and health insurance providers.

1.4.1 Size of the industry

1.4.2 Key growth drivers of the industry

1.4.3 Major segments of the industry

1.4.1. Size of the Industry

The United States of America has one of the largest medical and healthcare industries in the

world, followed by Switzerland and Germany. The USA's medical industry comprises of more

than 750,000 physicians and 5,200 hospitals. USA witnesses approximately 3.8 million

inpatient visits and 20 million outpatients visit on a daily basis. Furthermore, the United States

of America has the largest workforce i.e. one in every 11 US residents employed in the health

care business.

The Global prescription drug market was $550 billion in the year 2008. Also, the total health

care expenditures across the world were $4.5 trillion last year. Of which, US solely account for

$ 2.2 trillion, $ 2 trillion in OECD countries and remaining $ 0.3 in other countries of the world

1.4.2. Key Growth Drivers of this Industry

There are various factors, which govern the growth of the medical and healthcare industry.

Some of the key factors are:

Continuous investments in research & development has resulted in increased

productivity and better quality of drugs, medicines, medical instruments, hospital

equipment, and other medical supplies used in medical industry.

Provides employment to large chunk of human population. United States of America

has the largest workforce i.e. one in every 11 US residents employed in the health care

business.

Increased costs in the medical treatment in the developed nations have driven patients

to migrate to Asian countries.

Rise in ailments among the ageing population especially in developed nations has led to

the increase in demand of variety of drugs or medicines.

Innovative techniques of drug discovery and drug development, new cures and

treatments, gene testing for insurance, genetic predictions of disease and related issue,

human cloning and reproductive technologies are the other key drivers of the medical

industry.

1.4.3. Major Segments of the Industry

The global medical industry is highly fragmented, comprising of various ancillary sectors

namely

• Medical equipment and supplies.

• Pharmaceutical.

• Healthcare services.

• Biotechnology.

• Alternative medicines sector.

• Medical Equipment and Supplies :

Consists of various establishments or units engaged in designing, manufacturing,

selling and distributing of surgical and medical instruments, ophthalmic, lab apparatus,

electro medical, denta l , irradiation, surgical appliances and supplies.

Share of medical equipment and supplies

• Pharmaceutical Industry :

Comprises of several establishments involved in developing, researching, marketing

and distributing drugs or medicines. Globally, the market share of pharmaceutical

industry is US $340 billion. The global pharmaceutical sales account for US$ 602

billion, with an annual growth rate of 7%. In the year 2006, the global pharmaceutical

exports totaled US $ 271.9 billion having an annual growth rate of 10%.

• Healthcare Services Industry

It includes various establishments dealing in different type of services like testing,

outsourcing, transcription, quality assurance, validation, compliance, chemical analysis,

and other types of services. The global market share of biotechnology services industry

is worth US $ 50 billion, which is soon expected to witness a hike in coming years.

Presently, pharmaceutical testing service industry values to US $ 5.9 billion, which is

predicted to reach US $ 9.5 billion by the end of 2009. Microbiological testing service

industry accounts for US $ 2.4 billion. Globally, the medical outsourcing services

industry accounts for approximately US $ 200 billion.

Evolution of the Healthcare Services Industry in India

In India, healthcare is delivered through both the public healthcare system and the

private sector. The public healthcare system consists of healthcare facilities run by the

central and state governments, which provide services free of cost or at subsidized rates

to low-income families in rural and urban areas.

The government funds allocated to healthcare sector have always been low in relation

to the population of the country, and in 2003 were as low as 0.9 per cent of the GDP.

In the private sector healthcare industry, healthcare facilities are owned and run by for-

profit companies and non-profit or charitable organizations.

Healthcare facilities run by charitable organizations also provided services at

subsidized rates or free of cost depending on the income of the patient or the patient's

family. Initially, the government imposed high custom duties on imported medical

equipment making it difficult for private individuals to set up hospitals that provided

specialized care using sophisticated equipment.

As a result, there were very few privately run large hospitals but there were many small

private practitioners who provided primary and secondary care. Another, limitation

faced by the private sector was low penetration of medical insurance which meant that

almost everyone paid out of their pocket.

Therefore, many could not afford to go to private hospitals, as the fees were much

higher than the governments run hospitals. Gradually, with the rising population and

number of people suffering from diseases that required specialized care, together with

the limited government spending on healthcare, the quality of services at government

run hospitals suffered.

The existing government facilities were simply not enough to cater to the burgeoning

population, whether it was primary, secondary or tertiary care. The private sector

investment in the healthcare industry really took off in the 1990s after the liberalization

of the Indian economy. The number of privately run large hospitals and non-profit and

charitable hospitals began to increase.

In the recent past, there have been several innovations in the healthcare services

industry in India, giving patients a new experience of healthcare. The Amrita Institute

of Medical Sciences' fully digital, computerized and networked facility enabled it to

offer tele-medicine services such as tele-consultation, fetal tele-medicine and tele-

surgery.

Biotechnology Industry

It is one of the most research-intensive segments of the global healthcare industry.

Biotechnology industry is composed of many establishments, which are engaged in

making wide variety of biotech products. Biotechnology is primarily being used by the

pharmaceutical industry but there are other industries like agriculture, mining, waste

treatment industries as well, which are making continuous use of biotechnology.

Biotechnology companies focus on developing methods or products used for

preventing, diagnosing and treating dozens of life threatening and chronic diseases. The

biotechnology industry has mushroomed since its inception and at present it is

equivalent to US $ 50.7 billion. China, USA, India, Australia, and France are the

market leaders of biotech products in the world.

Alternative Medication Industry

It includes various groups involved in the promotion of different forms of alternative

medications and therapies like Ayurveda, homeopathy, aromatherapy, massage therapy

etc. The total market size of alternative medicine is valued at US $2.7 billion while

global market for traditional therapies accounts for US $60 billion.

1.5.World Healthcare Industry

1.5.1. US Healthcare Industry.

1.5.2. UK Healthcare Industry.

1.5.3. Canada Healthcare Industry.

With the invention of latest technological developments, the world health care industry is

catching up with the other leading industries of the world. World health care industry is one of

the largest industries catering to the medical needs of innumerable people around the globe.

Statistics show that in the year 2004, employment provided by the health care industry

accounted for 13.5 million job opportunities. Out of the 13.5 million jobs, some of the people

opted for self employment while others remained salaried workers related to the health care. It

has been predicted that between 2004 through 2014, increase in the health care jobs would be

by approximately 19% or as many as 3.6 million job opening would be produced.

The statistics provided above reflect the health care scenario in the USA. Generally, the world

health care industry comprises of the following segments:

• Hospitals

• Nursing

• Physicians

• Dentists

• Health care services at home.

• Medical practitioners

• Outpatient departments

• Ambulant health care facilities

• Diagnostic laboratories and medical services

World health care industry includes any medical institution which includes either a single

medical assistant to the medical practitioner or medical practitioners attached to different

hospitals and other medical establishments

1.5.1 US Healthcare Industry

President Obama has indicated that his administration will reform the American health system

to expand access and make health care more affordable. However, his administration will need

to address how these programs will be paid; the impact of expanding health insurance

coverage; and the potential shortages or strains these reforms could pose for the existing health

care system.

This report examines the challenges the President faces, explains how these reforms may be

enacted, the potential impact for employers as well as those in the health industry and provides

five ideas for making health care more affordable.

Key findings from the report include:

PwC estimates that President Obama's plan would provide coverage for two-thirds of the

uninsured; costing $75 billion if it were enacted in 2009.

Forty percent of the estimated 30 million Americans who would gain health insurance

would obtain this through their employers reversing a critical trend in the erosion of

employer-based coverage.

Many of the reforms proposed have been tested at the state level in Massachusetts, which

enacted universal healthcare legislation in 2006. The state now has the nation's lowest

uninsured rate in what had been the most costly healthcare state.

Approximately one-third of the cost of Obama's plan could come from existing funding for

the uninsured. The remaining amount will have to be raised through repealing tax cuts,

raising taxes or other limitations in spending.

Reforms are aimed at providing tax subsidies for the healthcare disenfranchised which

includes the estimated 15% of uninsured Americans and those small businesses that cannot

afford to offer coverage.

Expanding coverage will exacerbate current deficiencies in the health system, such as labor

shortages.

Without successful cost containment strategies, growing healthcare costs would increase

the costs of the Obama plan dramatically over time and reduce the effectiveness of

mandates - making federal costs unsustainable.

The health industry can improve care and lower costs through public-private efforts; PwC

has identified five ideas for the Obama administration to consider.

1.5.1.1. Contribution

It has been hoped-for, that by the year 2012, contribution of the United States health

care industry's to the gross domestic product will be approximately 17.7%. United

States health care industry constitutes 15% of the economy of United States Of

America. Records show that expenditure related to health care sector escalated by 9.3%

in the year 2002, when it attained $1.55 trillion. This figure was the highest recorded in

the last 11 years. This figure denotes that an expenditure of $5,440 is spent for every

individual. The hike in the percentage can be attributed to expenses related to

prescribed drugs, and hospitalization charges. Progress of this kind defeated all other

sectors consistently for four years.

The US health care industry manifested a stable growth between the years 1992-1999.

Expenditure on health care related articles soared up. On the other hand, the economy

of United States of America struggled. As an aftermath, expenses related to health

sector increased from 13.3% of gross domestic product or GDP in the year 2000, to

14.1% in the year 2001. 2002 witnessed a further increase to 14.9%. Economists are of

the opinion that changes associated with the United states health care industry is not

affected promptly. It takes at least 2 to 3 years to notice the change unless some drastic

incidents take place beyond the control of human beings.

1.5.1.2. US Health care industry-Facts:

Expenditure on prescribed drugs changed magnitude from $6.1 billion to $48.6 billion

in the year 2002 and individuals spending on their health care needs reached $212.5

billion in the same year.

Hospitalization related expenses reached $486.5 billion in the year 2002. The increase

was by 9.5% from 2001.

As informed by the Organization for Economic Cooperation and Development, the year

2001, witnessed a 10.9% contribution to the GDP by the healthcare sector of

Switzerland. The contribution to GDP in the Germany health care sector was 10.7%.

France and Canada had a contribution of 9.5% and 9.7% respectively to the gross

domestic product of the country. Despite the fact, around 43 million residents of USA

do not possess an insurance policy, United States of America, dedicates a major portion

of the economy to the health care industry in comparison to any other country where

industries dominate the economy.

1.5.2 UK Healthcare Industry

The UK healthcare industry serves the needs of an increasingly health-aware population. It is

an extremely diverse sector covering a very wide range of product types and healthcare uses.

The term "healthcare industries" is not clearly defined and may be used to encompass medical

devices, systems and technologies, laboratory equipment and associated support services eg

planning, design, management, training and education. The majority of large companies

operating in the UK are foreign-owned, notably American. The healthcare sector exports

around £4 billion worth of goods and services annually into a global market that is growing

rapidly, as individual expectations rise, and political pressure grows in many countries to

improve services and facilities. The sector employs about 50,000 staff.

The term "medical device" covers all products, except medicines, used in healthcare diagnosis,

prevention, monitoring or treatment of illness or handicap. The number of significant UK

medical device companies is small and vary from those with less than £1m/year turnover

(about 1800 companies or 85 %) to those with £500m - £ 1bn sales. It is estimated that about

38 million people in the UK per day have contact with a medical device. Patients on whom

devices are used include those visiting hospitals, GPs, dentists, opticians, chiropodists as well

as those who daily use glasses, contact lenses, dentures etc.

Overall the sector's export is growing rapidly as individual expectations rise, and political

pressure grows in many countries to improve services and facilities. The UK's increasing

presence in the global market has been attributed to three main factors: complementary

relationships between the industry, the Government, the NHS, the private sector and voluntary

organisations; a highly developed healthcare infrastructure; and an outstanding and well-

supported research base.

1.5.3 The Healthcare Industry in Canada

The health care industry in Canada is, from both financial and cultural perspectives, huge. The

amount of money spent every year in Canada on health care takes up a significant and growing

percentage of public spending. The profile, too, that health care has in the eye of the public

cannot be underestimated. Health care funding, access, waiting times and efficiencies regularly

dominate federal and provincial elections in Canada. But yet the circle of influence, those who

are involved in and make decisions about health care, is quite small. Influencing those

decision-makers is essential for anyone with a good idea about how to improve the health care

system.

The Deloitte’s innovation summit is a step in identifying that those leaders are, engaging them

in conversation and facilitating their conversation with each other.

1.5.3.1. Current challenges across Canada

Attendees at Deloitte’s 2007 Health Care Innovation Summit spent some time focused

on the ongoing provision of high quality care in the face of skyrocketing costs and an

aging population that will put more of a demand on the system and, over time, pay less

into it.

Allan Horsburgh, Chief Financial Officer of the Nova Scotia Department of Health,

made the point in dramatic fashion. “Our province is currently spending 46% of our

non-debt servicing dollars on health care,” said Horsburgh. Conservative estimates put

the growth in health care spending at 8.5% in that province, and revenue growth at 3%.

“Left unchecked, heath care spending will consume 100% of our provincial program

spending budget within 10 to 15 years.”

“People in the health industry understand the challenges facing health care quite

clearly, and there is an agenda to implement a more integrated health care system in

order to manage and thrive. However, to achieve results, more collaboration, long-term

planning and innovation needs to be injected,” says Shannon MacDonald, leader of

Deloitte’s Health Services practice in Canada. Horsburgh’s presentation made this real

for summit participants by showing that the funding for health care is an issue that can

quickly affect many other areas of provincial spending. While Nova Scotia’s situation

is more extreme than some other provinces, it is not unique.

Most jurisdictions in Canada face the same problems on some scale. The solutions that

are being devised by all members of the health care continuum — planners, funders and

practitioners — are being shared nationally and internationally at events like this one.

1.5.3.1. A broader partnership to deliver value

“The innovation summit allows health care industry leaders and other stakeholders to learn

from each other how to achieve the goal of integrated care,” said Dalton Truth Waite,

Deloitte’s Health Services senior manager. Some of the solutions being tried and tested include

“aging in place” programs, bringing an integrated basket of services to aging people in their

home, as opposed to expensive institutionalization.

As well, heath care systems across the country could come together to leverage their buying

power with members of the Life Sciences industry, such as drug companies and medical supply

firms, thereby delivering tremendous value to end-users. “Both health care providers and

private vendors know they need to work together to create a broader partnership to be part of

the transformative change in the health care industry,”

1.6.Global Contribution

Consuming just under 10 percent of gross domestic product of most developed nations, health

care can form an enormous part of a country's economy. Healthcare costs paid to hospitals,

physicians, nursing homes, diagnostic laboratories, pharmacies, medical device manufacturers

and other components of the health care system, consumed 16.3 percent of the GDP of the

United States, the largest of any country in the world. For the United States, the health share of

gross domestic product (GDP) is expected to hold steady in 2006 before resuming its historical

upward trend, reaching 19.5 percent of GDP by 2016.

1.7.Indian Scenario

India's rapid growth has brought about many changes in demographics and lifestyle. Rising

incomes, hectic pace of life and stress have resulted in a change in disease patterns, even as

there is greater awareness about health and a demand for quality healthcare.

Healthcare, which is a US$ 35 billion industry in India, is expected to reach over US$ 75

billion by 2012 and US$ 150 billion by 2017 according to Technopak Advisors in their report -

'India Healthcare Trends 2008'.

The healthcare industry is interestingly poised as it strives to emerge as a global hub due to the

distinct advantages it enjoys in clinical excellence and low costs. The industry, which was once

the exclusive domain of the government, has seen a steady participation of major corporate

houses which have helped set up premium hospitals and medical facilities across the country.

The sector offers immense potential to healthcare players as the country witnesses a rise in the

incidence of lifestyle-related and other diseases. A growing elderly population and rise in

income levels are also pushing for better facilities in the country.

Driving the sector's growth will be the health-conscious middle class which can afford and

wants quality healthcare. Over 150 million Indians have annual incomes of more than US$

1,000, and many who work in the business services sector earn as much as US$ 20,000 a year.

If the economy continues to grow at the current rate and the literacy rate keeps rising, much of

western and southern India will be middle class by 2020.

To meet this growing demand, the country needs US$ 50 billion annually for the next 20 years,

says a Confederation of Indian Industry (CII) study. India needs to add 2 million beds by 2027

to the existing 1.1 million, and requires immediate investments of US$ 82 billion as per the

Technopak Advisors report.

1.7.1 Growth of Healthcare Industry in India

The rate of growth of the health care industry in India is moving ahead neck to neck with

the pharmaceutical industry and the software industry of the country. Much has been said

and done in the health care sector for bringing about improvement. Till date, approximately

12% of the scope offered by the health care industry in India has been tapped.

The health care industry in India is reckoned to be the engine of the economy in the years

to come. Health care industry in India is worth $17 billion and is anticipated to grow by

13% every year. The health care sector encompasses health care instruments, health care in

the retail market, hospitals enrolled to the hospital networks etc.

Expenses incurred by the Indian Government on health care are the highest amongst

developing countries. India's expenses on health care sector comprise 5.25% of the GDP.

Chances are that the health care market could experience a hike and attain a figure ranging

between $53 and $73 billion five years from now. This in turn will reflect an increase in the

gross domestic product to 6.2% GDP. The health care industry in India earns revenues

accounting for 5.2% of gross domestic product.

Employment opportunities are provided to as many as 4 million people in the health care

segment or other related sectors catering to the health care industry in India in some way or

the other. Owing to the vast differences in medical expenses in western countries and that

of India, India has become one of the favorites for health care treatments.

Due to the progressive nature of the health care sector in India, several foreign companies

are intending to invest in the country

1.7.2 Indian Healthcare Facts

• Indian healthcare market, currently estimated at US$ 34.2 billion.

•Healthcare delivery and pharmaceuticals account for nearly 75% of the total

healthcare market.

•Private healthcare is estimated to be the largest component of the healthcare sector

by 2012, expected to double to US$ 38 billion by 2012.

•The Indian Healthcare market has grown from US$ 22.8 billion in the year 2005, at

a CAGR of 16%.

•Market is expected to grow to US$ 50.2 billion and US$ 78.6 billion by 2011 and

2016 respectively.

1.8.Healthcare Market – Future Perspective

The future perspective of medical industry seems to be immensely bright and encouraging for

this industry in terms of the expected surge in global demand and upsurge in investments.

Several trends such as globalization, continuous investments in research and development,

newer techniques of drug development and discovery, product proliferation, mergers and

acquisitions are the key drivers of this industry.

Increasing corporatization of Private Healthcare in the backdrop of a growing and affluent

middle class is an emerging trend that has been pushing the growth of this industry. Most of

the nations are now emphasizing on the accreditation of medical professionals so as to ensure

legitimacy of the services provided by them. Robust advancement in the field of information

technology will allow critical medical data to be processed and transferred quickly over larger

distances, thereby saving time of both the patients and physicians in the speeding delivery of

treatment.

• With rise in income levels and increasing adoption of health insurance, the demand for

tertiary care is expected to grow

• The average annual growth in health expenditure by the BRIC countries is estimated at

11% for the 2006-11 periods, reaching about US$ 413 billion by the year 2011.

COMPANY PROFILE

2.1. Introduction

TTK Healthcare Ltd is a member of the TTK Group of Companies, a highly successful and

diverse multi-product, multi-unit manufacturing and marketing organization with a sales

turnover of Rs.500 crores.

The origin of the TTK Group dates back to 1908 when Mr.T.T.Krishnamachari started an

indenting house, to market the products of Lever Brothers. From this venture, the company

expanded its activities into the marketing of internationally well known branded products such

as Cadbury’s Chocolates, Woodward’s Gripe water, Flit Insecticides, Beecham’s Toiletries,

Morton’s sweets and Cosmetics from Cheese borough- Ponds.

In  course  of time the Group gradually  extended  its  marketing activity into manufacturing

and today produces a range of leading brands  such  as  the Woodward’s Gripe  Water, 

Prestige  Pressure Cooker  and Pressure Pan,  Kohinoor Condoms , Tantex Hosiery etc.

Some of the prominent companies of the TTK Group are TTK Healthcare Ltd, manufacturers

of ethical pharmaceuticals; TTK Prestige limited, manufacturers of the Prestige range of house

ware; TTK LIG Limited, manufacturers of the Kohinoor range of condoms; TTK Healthcare

Ltd (Printing Division) manufacturers of maps, atlases, guide books and industrial grades of

Paper.

2.2. Company Overview

TTK Healthcare Ltd was incorporated on May 21, 1958 as Orient Pharma Private Limited and

began its activities by distributing Woodward's Gripe Water in India.  In 1981,  the company

name was changed  to  TTK  Pharma Pvt Ltd and in 1986,  the  company  went public  with

linked issue of Equity Shares and  Debentures  which was oversubscribed 53 times.

The Company has since then broadened its activities and today has manufacturing facilities at

three centers employing over 1500 people. The Company is managed by a highly professional

and experienced Board of Directors.

2.3. Vision, Mission & Quality Policy

Vision:

The company envisions being a leading player in the chosen categories of the consumer and

the health care products in the minds of the Indian consumer as a manufacturer supplier of

quality products. This shall be achieved through customer centric process, people development

and corporation excellence.

Mission:

The basic mission of the company is “quality consumer/ health care products in affordable

prices” and in the process delivering long term value to all stake holders in the company.

Quality Policy:

The quality of the company is to provide to its internal and external customers products that are

fit for their intended purposes in conformance to the company’s quality specification and on

schedule.

The company will achieve objectives through continuous improvement and total employee

involvement.

2.4. Functional Areas of TTK

2.4.1. Purchase Department

2.4.2. Marketing Department

2.4.3. Production Department

2.4.4. Finance Department

2.4.5. Human Resource Department

2.4.6. Quality Assurance Department

2.4.1. Purchase Department

According to the requirement of the company the raw materials, hand packing materials are

purchased by this dept. Availability of raw materials is known from the store dept and the

orders are placed to the suppliers accordingly by purchase dept. For every receipt of raw

/packing material the goods inward number is allotted by the computer.

Purchasing managers/directors, and procurement managers/directors guide the organization’s

acquisition procedures and standards. Most organizations use a three-way check as the

foundation of their purchasing programs. This involves three departments in the organization

completing separate parts of the acquisition process. The three departments do not all report to

the same senior manager to prevent unethical practices and lend credibility to the process.

These departments can be purchasing, receiving; and accounts payable or engineering,

purchasing and accounts payable; or a plant manager, purchasing and accounts payable.

Combinations can vary significantly, but a purchasing department and accounts payable are

usually two of the three departments involved.

The method used by the company for decreasing administrative costs associated with repetitive

contracts for common material, is the use of company credit cards, also known as "Purchasing

Cards" or simply "P-Cards". P-card programs vary, but all of them have internal checks and

audits to ensure appropriate use. The purchasing Manager can sign in contracts for bulk

purchase when the cost is low. There is still oversight in the forms of audits and monthly

statement reviews, but most of their time is now available to negotiate major purchases and

setting up of other long term contracts. These contracts are typically renewable annually.

This trend away from the daily procurement function (tactical purchasing) resulted in several

changes in the company.

• The first was the reduction of personnel. Purchasing departments were now smaller.

There was no need for the army of clerks processing orders for individual parts as in the

past.

• Another change was the focus on negotiating contracts and procurement of large capital

equipment. Both of these functions permitted purchasing departments to make the

biggest financial contribution to the organization.

This value was manifested in lower inventories, less personnel, and getting the end product to

the organization’s consumer quicker. Purchasing manager’s success in these roles resulted in

new assignments outside to the traditional purchasing function – logistics, materials

management, distribution, and warehousing.

Goods brought for the purpose other than direct selling, such as for Research and

Development, are added to inventory and allocated to Research and Development expense as

they are used. On a side note, equipments brought for Research and Development are not

added to inventory, but are capitalized as assets.

2.4.2. Marketing Department

Marketing is an ongoing process of planning and executing the marketing mix (Product, Price,

Place, Promotion often referred to as the 4 Ps) for products, services or ideas to create

exchange between individuals and organizations.

The activities of Marketing department in TTK Healthcare Ltd includes advertising,

distribution and selling. It is also concerned with anticipating the customers' future needs and

wants, which are often discovered through market research.

Essentially, marketing is the process of creating or directing an organization to be successful in

selling a product or service that people not only desire, but are willing to buy.Therefore good

marketing must be able to create a "proposition" or set of benefits for the end customer that

delivers value through products or services.

The methodological approach of selling refers to a “systematic process of repetitive and

measurable milestones, by which a salesperson relates his or her offering of a product or

service in return enabling the buyer to achieve their goal in an economic way”.

While the sales process refers to a systematic process of repetitive and measurable milestones,

the definition of the selling is somewhat ambiguous due to the close nature of advertising,

promotion, public relations, and direct marketing

Sales departments often form a separate grouping in a corporate structure, employing

individuals who specialize in sale specific roles. Selling involves sales which are the pinnacle

act of completed of a purchasing activity. Selling also involves salespeople who are the

primary agents of facilitating sales.

Selling is the profession-wide term, much like marketing defines a profession. Recently,

attempts have been made to clearly understand who is in the sales profession, and who is not.

TTK Healthcare Ltd. looks at marketing, advertising, promotions, and even public relations as

ways to create a unique transaction.

The main focus of selling is on the human agents involved in the exchange between buyer and

seller. It involves salespeople who possess specific set of sales skills and knowledge that are

required to facilitate the exchange of value between buyers and sellers that is unique from

marketing, advertising,etc.

2.4.3. Production Department

In microeconomics, production is the act of making things, in particular the act of making

products that will be traded or sold commercially. Production decisions concentrate on what

goods to produce, how to produce them, the costs of producing them, and optimizing the mix

of resource inputs used in their production. This production information can then be combined

with market information (like demand and marginal revenue) to determine the quantity of

products to produce and the optimum 'pricing'.

This department deals with the production activity of TTK Health care Ltd.

Some of the licensed product of the company are manufactured at the sub contractor’s

premises

The sub contractor’s ensures that the manufacturing activities are carried out as per the

work instructions.

The production dept takes care the visit the sub contractor premises periodically during

manufacture of products

Mass Production

Characteristics Equipment is expensive and used for a solitary purpose.

A very small variety of goods are produced.

Goods are transported from one fixed work station to another.

Advantages Greater specialisation.

Optimum utilisation of workers and machinery.

Low production costs per unit.

Restricted handling of materials.

Production control is simplified.

High sales earning profit.

Division of labour.

Equipment standardized.

Products uniform.

Disadvantages Expensive capital for equipments/machineries.

Expensive redesigning

Products may lack quality

Staff may be demotivated since work is repetitive and boring

2.4.4. Finance Department

The field of finance refers to the concepts of time, money and risk and how they are

interrelated. The term "finance" may thus incorporate any of the following:

The study of money and other assets

The management and control of those assets

Profiling and managing project risks

The science of managing money

The industry that delivers financial services

As a verb, "to finance" is to provide funds for business or for an individual's large

purchases

Finance is one of the most important aspects of business management. Without proper

financial planning a new enterprise is unlikely to be successful. Managing money (a liquid

asset) is essential to ensure a secure future, both for the individual and an organization. In TTK

Healthcare Ltd;

The inflow and outflows of cash is maintained by finance dept.

The inflow of the cash involves income, sales etc. The outflow of cash involves

expenses like General expenses ,salaries etc

This dept involves the managerial activity of the company

The funds in form of loans & barrowings allocated by the finance dept for each and

every dept for carrying the managerial activity.

2.4.5. Human Resource Department

Human resources is a term with which many organizations describe the combination of

traditionally administrative personnel functions with performance, Employee Relations and

resource planning. The field draws upon concepts developed in Industrial/Organizational

Psychology. Human resources has at least two related interpretations depending on context.

The original usage derives from political economy and economics, where it was traditionally

called labor, one of four factors of production. The more common usage within corporations

and businesses refers to the individuals within the firm, and to the portion of the firm's

organization that deals with hiring, firing, training, and other personnel issues.

The objective of Human Resources is to maximize the return on investment from the

organization's human capital and minimize financial risk. It is the responsibility of human

resource managers to conduct these activities in an effective, legal, fair, and consistent manner.

Human resource management of TTK Healthcare Ltd. serves these key functions:

Selection

Training and Development

Performance Evaluation and Management

Promotions

Redundancy

Industrial and Employee Relations

Record keeping of all personal data.

Compensation, pensions, bonuses etc in liaison with Payroll

Confidential advice to internal 'customers' in relation to problems at work (Grievance

Redressal)

Career Development

Human Resource Development

In terms of recruitment and selection the company considers carrying out a thorough job

analysis to determine the level of skills/technical abilities, competencies, flexibility of the

employee required etc. At this point they consider both the internal and external factors that

can have an effect on the recruitment of employees. The external factors are those out-with the

powers of the organization and include issues such as current and future trends of the labor

market e.g. skills, education level, government investment into industries etc. On the other

hand internal influences are easier to control, predict and monitor, for example management

styles or even the organizational culture.

In order to know the business environment in which the organization operates, three major

trends are considered:

Demographics – the characteristics of a population/workforce, for example, age, gender

or social class. This type of trend may have an effect in relation to pension offerings,

insurance packages etc.

Diversity – the variation within the population/workplace. The company focus on the

social engineering theory without understanding the more important points:

•Diversity of ideas to prevent stagnation of products and business development;

•Expanding the customer base through "outreach"; and

•Profit.

Diversity, based on social engineering “is about creating a working culture that seeks,

respects and values difference” without regard to how diversity increases productive and

unity of effort.

Skills and Qualifications – as industries move from manual to a more managerial

professions so does the need for more highly skilled graduates. If the market is "tight"

(i.e. not enough staff for the jobs), employers will have to compete for employees by

offering financial rewards, community investment, etc.

Modern Concept of Human Resources

The company has adopted the modern concepts of human resourses such as:

Recruitment & selection of suitable manpower.

Training & periodical & source personal policy through out the organization.

Define rules & regulations for the conduct of personnel on duty.

Coordinate training of management staff and subject training programme on the basis of

personal appraisal.

To represent and participate in conciliation proudly.

Before act and attend labour court of adjudication.

Maintain of staff records register.

Maintain Industrial Discipline Acts for personal budgeting.

2.4.6. Quality Assurance Department

Quality assurance, or QA for short, is the set of planned and systematic actions necessary to

provide appropriate confidence that a product or service will satisfy the requirements for

quality.

Quality Assurance is a wide range concept concerning all the matters collectively or

individually, which directly affect the quality of product. It controls the quality of a product by

doing in-process quality checks, effectively functioning as the brain of an organization

Early efforts to control the quality of production

Efforts taken by the company to maintain th quality of the products are as follows:

Raw materials purchased are sent to the quality assurance dept to check the quality of the

material.

The raw material is checked through chemist analysis, biological laboratories.

After a proper checking, only the raw materials that are approved are sent for production.

If the materials are not of particular quantity they are rejected & sent to the stores dept in

turn to return to the suppliers.

The quality assurance dept prepares a reject project for rejected materials and hire reject

materials.

The quality assurance dept checks not only the raw materials but also finished product after

their production activity gets over.

The quality assurance dept also checks the quality of all types of containers, bottles and

plastic containers printed material like table, sachets, export container etc.

Quality control applies to all forms of products and services. This introduced the rules: "fit for

purpose" and "do it right the first time". It includes the regulation of the quality of raw

materials, assemblies, products and components; services related to production; and

management, production, and inspection processes.

One of the most widely used paradigms for Test management is the PDCA (Plan-Do-Check-

Act) approach, also known as the Shewhart cycle.

Failure Testing

A valuable process to perform on a whole consumer product is failure testing, the operation of

a product until it fails, often under stresses such as increasing vibration, temperature and

humidity. This exposes many unanticipated weaknesses in a product, and the data is used to

drive engineering and manufacturing process improvements. Often quite simple changes can

dramatically improve product service, such as changing to mould-resistant paint or adding

lock-washer placement to the training for new assembly personnel.

Statistical Control

Many organizations use statistical process control to bring the organization to Six Sigma levels

of quality, in other words, so that the likelihood of an unexpected failure is confined to six

standard deviations on the normal distribution. This probability is less than four one-millionths.

Items controlled often include clerical tasks such as order-entry as well as conventional

manufacturing tasks.

Traditional statistical process controls in manufacturing operations usually proceed by

randomly sampling and testing a fraction of the output. Variances of critical tolerances are

continuously tracked, and manufacturing processes are corrected before bad parts can be

produced.

Total Quality Control

Deep Analysis of quality assurance practices and premisses used about them is the most

necessary inspection control of all in cases where, despite statistical quality control techniques

or quality improvements implemented, sales decrease.

The major problem which leads to a decrease in sales was that the specifications did not

include the most important factor, “What the specifications have to state in order to satisfy the

customer requirements?”.

The major characteristics, ignored during the search to improve manufacture and overall

business performance were:

Reliability

Maintainability

Safety

As the most important factor had been ignored, a few refinements had to be introduced:

Marketing had to carry out their work properly and define the customer’s specifications.

Specifications had to be defined to conform to these requirements.

Conformance to specifications i.e. drawings, standards and other relevant documents, were

introduced during manufacturing, planning and control.

Management had to confirm all operators are equal to the work imposed on them and

holidays, celebrations and disputes did not affect any of the quality levels.

Inspections and tests were carried out, and all components and materials, bought in or

otherwise, conformed to the specifications, and the measuring equipment was accurate, this

is the responsibility of the QA/QC department.

Any complaints received from the customers were satisfactorily dealt with in a timely

manner.

Feedback from the user/customer is used to review designs.

Consistent data recording and assessment and documentation integrity.

Product and/or process change management and notification.

If the original specification does not reflect the correct quality requirements, quality cannot be

implemented into the product.

For instance, all parameters for a pressure vessel should include not only the material and

dimensions but operating, environmental, safety, reliability and maintainability requirements.

To conclude, the above forms the basis from which the philosophy of Quality has evolved, and

the achievement of quality or the “fitness-for-purpose” is “Quality Awareness” throughout the

company.

ISO 17025

ISO 17025 is an international standard that specifies the general requirements for the

competence to carry out tests and or calibrations. There are 15 management requirements and

10 technical requirements. These requirements outline what a laboratory must do to become

accredited. Management system refers to the organization's structure for managing its

processes or activities that transform inputs of resources into a product or service which meets

the organization's objectives, such as satisfying the customer's quality requirements, complying

with regulations, or meeting environmental objectives.

The CMMI (Capability Maturity Model Integration) model is widely used to implement

Quality Assurance (PPQA) in an organization. The CMMI maturity levels can be divided in to

5 steps, which a company can achieve by performing specific activities within the organization

2.5. Research And Development

The Research and Development Centre of TTK Healthcare was established in 1975 to develop

a range of proprietary medicines. The laboratory has been approved by the Ministry of Science

and Technology, Government of India. The centre has been recognized for conducting

doctoral research by Academic Institutions.

TTK Healthcare is actively involved in setting up a full fledged Research facility at Bangalore

to develop the technology for the manufacture of wide range products.

Extensive multicentric trials are conducted in respect of all products in the Clinicare, Indian

Medicine and Modern Medicine Divisions. Only after the products are proven, are they

launched commercially.

2.6. Exports

• TTK Healthcare’s thrust on exports has paid rich dividends.

• Blood bags and blood transfusion sets are exported to UK, Egypt and Germany.

Antibiotic bulk drugs are exported to Germany and Nigeria. 

• Herbal  products  are exported to USA,  Singapore  and Malaysia  while 

• Woodward's Gripe Water is exported to   the Caribbean countries. 

• Fryums and snack pellets are exported to the Middle East, Srilanka and Singapore. 

Exports are expected to grow significantly in the immediate future with TTK

Healthcare establishing marketing tie-ups in Mexico, USA and Canada.

2.7. Overseas Collaborators

The TTK Group has collaborated with a number of established foreign corporations including:

London International Group, UK

Kali-Chemie, West Germany

Nicholas Kiwi, a division of Sara-Lee, USA

Hatu-Ico, Spain

Green Cross Medical Corporation, Korea

Korea Green Cross Corporation, Korea

Dong-A Pharm, Korea

2.8. Rights Issue From TTK Healthcare

TTK  Healthcare  is coming out with a Rights issue  of  13,55,673 equity  shares  of  Rs.10

each at a premium of  Rs.35  per  share aggregating  to Rs.6.10 crores. While 12,91,118 shares

will  be issued  to  existing shareholders in the ratio of  2  shares  for every  5  shares, the

balance 64,555 shares will  be  offered  to employees of the company and associate companies.

The Rights Issue will augment the long term working requirements of the Company. TTK

Healthcare is in the process of upgrading its manufacturing facilities to meet the specifications

of the ISO 9000 at all its facilities, which it hopes to achieve. Capital is also required to

provide development and promotional support for new products to be introduced by the

company.

TTK Healthcare net rises 15.23 times for Sep`08 qtr

TTK Healthcare, part of TTK group of companies and a Bangalore-based diversified

healthcare company disclosed a phenomenal rise in standalone net profit for the quarter ended

September 2008. During the quarter, the profit of the company rose 15.23 times to Rs 22.84

million from Rs 1.50 million in the same quarter previous year.

Net sales for the quarter rose 11.10% to Rs 538.10 million, while total income for the quarter

rose 11.32% to Rs 544.77 million, when compared with the prior year period.

The company posted earnings of Rs 2.82 a share during the quarter, registering 14.84 times

growth over prior year period.

Quarterly Results - Standalone (Rs in mn)As at Sep - 08 Sep - 07 %ChangeNet Sales 538.10 484.33 11.10Net Profit 22.84 1.50 1422.67Basic EPS 2.82 0.19 1384.21

2.9. Future Plans Of The Company

TTK Healthcare has come a long way from its early marketing days. Today the company has

diversified into a wide range of highly sophisticated, high technology products heralding a new

era in the Indian pharmaceutical scenario. The next few years  will see  rapid  growth in the

bio medical devices  market.  TTK Healthcare will launch a range of products that include

heart valves, incinerators, oxygenators, humidifiers, third generation cephalosporin,

Quinolones, anticancer drugs, unique herbal drugs, special nutritional supplements, etc. The

Petcare product range will grow as will the Woodward's Division. Newer products will

continue to evolve as research advances and technologies emerge.

PRODUCT AND SERVICE PROFILE

3.1 Overview

TTK Healthcare is committed to providing customers with innovative "value for money"

solutions and improving their quality of life.

The Company's brand wagon consists of products that are sought after by a wide range of

customers. The Woodward's Gripe Water brand is the market leader in the baby care category.

The Eva range of personal care products (Talc, Deodorant, Skincare) bring together the gentle

touch of nature, backed by TTK's extensive research.

TTK Healthcare has an All India Sales and Distribution network for marketing not only their

own products, but also the KIWI Brand (Shoecare), Brylcreem (Haircare) and Kohinoor and

Durex brands (Contraceptives). The Company also specializes in sales and distribution in India

as a joint venture partner. It has a successful tie up with Sara Lee Household and Bodycare Pvt.

Ltd. and TTK-LIG Ltd. The Company's distribution network comprises of 2800 redistribution

stockists who cover both the urban and rural consumers.

3.2 Product Divisions

Starting  with  Woodward's Gripe water TTK  Healthcare  has  been gradually  extending  its

product range up to  the  sophisticated, high  technology  product like heart valves and a range

of  bio-medical  devices.  The Company derives its strength from the diverse expertise

available within the Group in areas such as polymers, precision engineering, latex,

pharmaceuticals, foods and nutrition.

The  products of TTK Healthcare can be broadly classified into the following divisions:

3.2.1 Pharmaceuticals Division

3.2.2 Consumer Products Division

3.2.3 Biomedical Devices Division

Apart from the SBUs, their Satellite Divisions are

3.2.4 Foods

3.2.5 Maps

3.2.1 Pharmaceuticals Division

TTK Healthcare's Pharmaceuticals Division has many breakthrough herbal and allopathic

formulations, across various therapeutic segments. The range includes calcium supplements,

haematinics, cervical dilators, thrombolytic agents, rejuvenators, multimineral supplements,

liver correctives and pain management products.

Besides being the first Pharmaceutical Company in India to be awarded the ISO certification

by BIS, TTK Healthcare was also the first to launch technology-driven life-saving products

like Urokinase and Dopamine. The Company has also developed medicines like Lactare based

on Ayurveda - the ancient traditional system of medicine.

TTK Healthcare's Pharmaceuticals Division functions through 3 main divisions –

a) Modern Medicine Division (MMD),

b) Indian Medicine Division (IMD) and

c) Animal Welfare Division (AWD)

a)Modern Medicine Division (MMD)

Started  in 1960, this division produces a wide range of medicines  including

antihypertensive, antiangina drugs, anticholinergics   and  natural  calcium supplements.

TTK Healthcare also manufactures some of the most widely  used antibiotics  -

ampicillin, amoxycillin and cloxacillin. These drugs are produced at a very modern bulk

drug facility in Hyderabad.  The factory also manufactures formulation from the bulk

drugs. A comprehensive range of modern medicine for various conditions such as

emergencies due to shock, calcium deficiency, etc are manufactured at the facility at

Chennai.

i) Cardio Vascular Range:

Dopamine - an emergency injectable in case of shock.

Urokinase - to dissolve blood clots in myocardial infection.

Hiperten - for management of high blood pressure.

Nengil - for angina

ii) Gynecological Range:

Ossopan - a calcium supplement for pregnant women and lactating mothers.

Epidosin - a smooth muscle relaxant.

iii) Antibiotic Range:

Nepocil Ampicilin - broad based spectrum semi-synthetic penicillin.

Nepoclox - a combination of Ampicillin and Cloxacillin for stubborn infections.

Nepotax   - a   powerful   bactericidal   third    generation cephalosporin.

iv) General Products:

Metalin - a liquid iron and Protein tonic.

Oricitral - a systematic alkalizer.

Serutan - pancreatic enzyme tablets.

The future of modern medicine division: Products to be introduced within the next two years include:

A spectrum of antibiotics including later generation quinolones.

Cardio-vascular drugs.

Psychotropic drugs.

Anticancer drugs particularly for cervical, lung and breast cancer.

b)Indian Medicine Division (IMD)

The Indian Medicine Division of TTK Healthcare was  established in  1975  with the

objective of developing and  marketing  unique herbal  formulations based on ancient

Ayurvedic system of medicine. Every herbal formulation undergoes stringent analysis

and clinical trials. A wide range of products for men, women and children are

produced by this division. These include products of illnesses for which there are no

known allopathic alternatives. With the herbal market growing fast, both in India and

abroad, the success of this division is ensured.

i) Products for Women/Children:

Lactare - a herbal route to improve lactation.

Lukure - a product for leucorrhoea.

Elcarim - a herbal appetizer and growth promoter for children.

ii) Products for Men:

Mustong - a health fitness supplement.

Virilex - for vinity and male sexual dysfunctions.

iii) General Products:

Tefroli - a proven liver corrective and protective.

Valmus - relieves anxiety and stress.

Arthrid - for relief from stiff joints

Cofrem - a safe cough remedy

The future of Indian medicine division

This division continues to develop products for which were there is no allopathic

alternative available, eg, for psoriasis and Uterine dysfunctions; herbal tranquilizers,

etc.

c) Animal Welfare Division (AWD)

TTK Healthcare produces a range of products for livestock and poultry such as

antibiotics, vitamins feed supplements, etc. The pet care range launched by TTK

Healthcare marks a breakthrough in the veterinary products market. Pet care products

for household  pets  have also been introduced  like  herbal  skin oils, calcium

supplements, soaps and shampoos, etc.

The Animal Welfare Division (AWD) caters to the requirements of veterinarians,

hatcheries, poultry farms and dairy farms through a variety of herbal and allopathic

formulations.

The division's product range includes:

Feed supplements,

Liver correctives,

Calcium and phosphorous supplements,

Fertility inducers,

Anthelmintics,

Antispasmodic & cervical dilators,

Antihistamines,

Trace minerals & vitamin-A supplements,

Antibiotics,

Ectoparasiticide,

Cocktail enzymes etc.

The AWD has an extensive, well-trained sales force that is in touch with nearly 9000

Veterinarians across the country, and reaches out to the customer through a nation-wide

network of 450 stockists.

3.2.2 Consumer Products Division

The Consumer Products Division (CPD) markets and distributes Woodward's Gripe Water -

the undisputed market leader in the baby care category - and the recently introduced

Woodward's Baby Soap.

TTK Healthcare started operations with Woodward's Gripe Water, a product  established

internationally for over  years, first marketing it in 1948 and then starting its manufacture in

1961. Other products such as special pediatric nutritional supplements and a range of pediatric

formulations will be launched shortly.

TTK Healthcare markets a range of consumer products manufactured by its group companies.

These products include the Kohinoor range of condoms EVA range of products such as Eva’s

deo spray, talcum powder, moisturizer, lip drench

The future of the consumer products division

Product extensions in the Kohinoor range.

Durex International Condoms.

3.2.3 Biomedical Devices Division

a) Clinicare devices:

Demonstrating Indian technology at its forefront this division produces a range of bio-

medical products. Bio-medical technology involves the application of engineering

technologies to health care. The range of products can be further categorized into:

b) Cardio Care System:

The tilting-disc heart valve which will be manufactured for  the first  time in India by

TTK Healthcare is probably  the  most significant  of the company's products.

Other products in this category include:

ECG Electrodes,  

Cardotomy Reservoirs,  

Cardiopulmonary Custom Packs and

Mediastinal Drainage Systems.

c) Heart Valves:

The Heart Valve Division also manufactures and markets Clinimesh - a versatile prosthesis

for surgical reconstruction of thoracic and abdominal wall defects, Clinistern - stainless

steel needled suture for sternum closure and Clinipatch - a versatile prosthesis for surgical

reconstruction of septal wall defects.

3.2.4 Foods Division

In the mid 1980s, TTK Healthcare set up a unit with Italian machinery to produce extruded

food products. Products in this range include snack foods like Rice Sevai, Fryums and vadams.

TTK manufactures Potato and Cereal based pellets in its state-of -the-art facility, for markets in

India and abroad. The production unit is designed not only to assure the highest quality but also

to ensure consistency in quality.

The Cereal and Potato based pellets come in various shapes, such as Wheels (mini & penta),

Tubes (mini, short, long & square), Sticks, 3 Rings, Ribbed, Star, Checks, Chips, Drops etc

besides Onion Rings.

The customer base for TTK Ready-to-fry Snack Pellets includes multinationals and the trade in

India. The Exports division services the foreign countries and the products are regularly

exported to the overseas markets.

3.3 Distribution Services

Ever since its early beginnings as an indenting agency 76 years ago, TTK has been known for

its strong distribution and marketing network. The Group's leading brands owe a great deal to

the well-organized dealer and stockist network that TTK & Co., TTK Prestige and TTK

Healthcare have developed over the years, thereby making the TTK products readily available

in 3,20,000 outlets in India's cities, towns and villages. The Group's distribution strength

includes 10,000 direct dealers stocking its consumer durables and more than 2,800 distributors

stocking TTK Healthcare's Consumer Products range.

The Company is continuously on the look out for Joint Venture and Third Party distribution

opportunities so as to leverage its extensive distribution network

OBJECTIVES OT THE STUDY

4.1. Primary Objectives:

To analyze the grievance procedure that is implemented by the organization to resolve the

employee grievances.

To examine, the competence level of grievance resolution practices and the extent to which

they are favorable to the employees.

4.2. Secondary Objectives:

To determine the factors that causes grievance among employees.

To analyze the existing methods that is carried out by the organization to identify

grievances and the benefits that the employees get from the same.

To improve or revise the existing grievance procedure that is required by the employees of

the organization.

To suggest possible solutions to the company to take requisite deterrent procedures to avoid

the grievances henceforth.

To identify the overall satisfaction level of the existing grievance management system of

the organization.

NEED FOR THE STUDY

The grievance redressal procedure is a device by which grievances are settled, generally to the

satisfaction of the trade union or employees and the management. The effective grievance

handling procedure is essential as most grievances seriously disturb the employees’ morale,

productivity and their willingness to cooperate with the organization. Thus it is an important

part of labour relations.

The grievance machinery enables a management to detect any defects or flaws in the working

conditions or in labour relations, and undertake suitable corrective measures. If good morale or

code of conduct is to be maintained, it is essential that the grievance procedure is worked

honestly and without prejudice, failing which there is likely to be an explosion, and production

schedules would be shattered and the morale of the employees would be irretrievably impaired.

This project envisages the studies about the grievance management system followed in TTK

Healthcare Ltd. This study necessitates finding out the competence level of the grievance

handling mechanism, as handling grievances is an important part to reinforce good labour

relations.

The study acts as a channel or avenue by which the company may get to know about the

employees’ satisfaction in relation to the prevailing grievance procedure.

The main intension of this study is to provide fair and equitable processes which enable

employee concerns to be addressed as quickly as possible.

SCOPE OF THE STUDY

There is hardly a company or an industrial concern which functions absolutely smoothly at all

times. Thus, there must be a well designed grievance procedure which ensures that there will

be a systematic handling of grievances.

The study is confined to the employees of TTK Healthcare Ltd. It evaluates the efficacy of

grievances being handled in the organization. It helps to appraise the grievance procedure as

required by the employees. This in turn maintains good morale and a code of discipline among

employees.

It uncovers the extent to which the grievance procedure is exploited by the employees and also

about what they anticipate in the redressal procedure. This helps the organization to evaluate

the existing grievance procedure.

This study identifies the problem that hampers the proper functioning of grievance machinery.

It helps the organization to become aware of the flaws in working conditions or any other

factors which are the root cause for grievance.

To aid the company with certain counteractive proceedings that has to be taken to enhance the

current redressal procedure. It also helps to recognize and scrutinize the employee grievances

and its causes in the organization.

[

LIMITATIONS OF THE STUDY

Every study will have its own advantages and disadvantages. No study is perfect how ever

perfect it seems, as there is always room for improvements.

Even in this study even though every effect has been made to bring it to perfection and no

stone left unturned, there are still certain limitations which needs to be highlighted without

which this study can become biased.

Such limitations are:

The study has been restricted to TTK Healthcare Ltd, Chennai.

Some respondents were less interested in answering the questionnaire, as it was an interruption

to their regular work.

Primary data has been collected using questionnaire, which has the problem of respondents not

given factual information occasionally.

Some of the respondents could not be interviewed as they were not available.

REVIEW OF LITERATURE

7.1.Introduction

Emergence of grievance is a natural outcome of interaction among people whether in the

organizational context or in other context. In the organizational settings, employees may have

some grievances against employers; in the same way, employers may have grievance against

employees. Grievance is a state of dissatisfaction over some issues related to employment.

Generally, expression of this dissatisfaction in oral form is known as complaint while in

written form, it is known as grievance. This is latter form of expression of dissatisfaction which

requires redressal. For example, Michael Jucius has defined grievance as follows:

“A grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or

not, arising out of anything connected with the company which an employee thinks, believes or

even feels to be unfair, unjust, or inequitable”.

National commission on labor (India) has taken the view that:

Complaints affecting one or more individual workers in respect of wage payments, overtime,

leave, transfer, promotion, seniority, work assignment and other discharges constitute

grievances”. Based on the above definition, we may derive that:

1. Grievance is a feeling of an employee that an injustice has been done to him.

2. The feeling may be unvoiced or expressly stated by the employee; may be valid and

legitimate, or untrue; and may arise out of something connected with the work or the

organization.

When employees have grievances and these are not redressed properly, these result in to

frustration, discontent, and indifference to work, poor morale, and low productivity.

Accumulated grievances among employees may lead to turmoil in the organization.

7.2.Causes Of Grievances

In an organization, there may be a number of factors, significant or insignificant, which may

cause grievance, for example, Calhoon has observed that:

“Grievances exist in the minds of individuals, are produced and dissipated by situations, are

fostered or healed by group pressures, are adjusted or made worse by supervisors, and are

nourished or dissolved by the climate in the organization which is affected by all the above

factors and by the management”.

The above statement shows that the grievances may emerge at any level of the organization

and by any factor in the organization:

7.3.1 Wages and Working Conditions.

7.3.2 Supervisors.

7.3.3 Management Policy and Practices.

7.3.4 Employee’s Own Maladjustment.

7.3.5 Difference of Opinion.

7.3.6 Status of Trade Union.

7.3.7 Doubts and Fears.

In each category, the factors responsible may be as follows:

7.2.1 Wages and Working Conditions

Frequent break down of machinery.

Wage raise and methods of payment.

Overtime and incentive schemes.

Poor physical conditions at the work place.

Non-availability of proper tools and machines.

Unplanned changes in work schedules and procedures.

Very tight production standards.

No correlation between wage payment

7.2.2 Supervision

Poor relationship with the supervisor.

Failure to maintain proper disciplines.

Poor supervision styles

Unclear and vague job instructions.

Harassment, Favouritism and Bias.

Victimization of sub-ordinates.

7.2.3 Management policies and practices

Improper seniority, promotion, transfer, and discharge rules.

Lack of opportunities for career growth.

Unfair penalties imposed for misconduct.

hostility towards trade union activities

Discrimination between union employees and non-union employees.

Improper implementation of agreements and awards.

Improper rules and regulations.

Termination of employment.

7.2.4 Maladjustment of employee:

Work too hard or too easy to be interesting and motivating.

Too much ambitious to adjust with the present work.

Improper attitudes towards work creating dissatisfaction.

Frequent transfer of employees.

Employee fails to live-up to the conditions set by the management or neglect to

adhere to the contract.

7.2.5 Difference of Opinion:

Different interpretations of legal provisions.

Different interpretations of contract terms which are too general, contradictory or

ambiguous.

7.2.6 Status of Trade Unions:

Age of Trade union.

Strength of Trade Union.

Status of Trade Union.

7.2.7 Doubts and Fears:

Unilateral, illiberal and conservative attitude of managers and supervisors.

Partial attitude of foremen with fellow workers.

“A good process can enhance outcomes and give people satisfaction that their complaints have

been heard, even if the outcome is less than optimal.”

7.3.Need For Grievances Redressal

The grievance redressal procedure is a device by which grievances are settled, generally to the

satisfaction of the trade union or employees and the management. This procedure is an

important part of labour relations. It is essential, whether a plant is an organized one or not.

The grievance machinery enables a management to detect any defects or flaws in the working

conditions or in labour relations, and undertake suitable corrective measures. If good morale or

code of conduct is to be maintained, it is essential that the grievance procedure is worked

honestly and without prejudice, failing which there is likely to be an explosion, and production

schedules would be shattered and the morale of the employees would be irretrievably impaired.

The adoption of the grievance procedure is essential for a variety of reasons:

a) Most grievances seriously disturb the employees. This may affect their morale

productivity and their willingness to co-operative with the organization. If an explosive

situation develops, this can be promptly attended to if a grievance handling procedure is

already in existence.

b) It is not possible that all the complaints of the employees would be settled by first-line

supervisors, for these supervisors may not have had a proper training for the purpose,

and they may lack authority. Moreover, there may be personality conflicts and other

causes as well.

c) It serves as a check on the arbitrary action of the management because supervisors

know that employees are likely to see to it that their protest does reach the higher

management.

d) It acts as an outlet for employee gripes, discontent and frustrations.

A well designed grievance procedure would provide:

a) A channel or avenue by which any aggrieved employee may present his grievance.

b) A procedure which ensures that there will be a systematic handling of every

grievance.

c) A method by which an aggrieved employee can relieve his feelings of dissatisfaction

with his job, working conditions, or with the management.

d) A means of ensuring that there is some measures of promptness in the handling of the

grievance.

7.4.Benefits Of Grievance System

It encourages human problems to be brought in to open so that, management can

learns about them and try corrective action and adjust the grievance.

It leads to grievance prevention. It helps to identify and solve the problems before

they become serious.

It is a way of giving employees emotional release for their dissatisfaction. It acts

like a moral support.

It helps in establishing and maintaining work culture and the way of life. It puts a

check and balance up on arbitrary management action.

It allows the manager to put on guard to make sound human decision in each case.

It acts as a channel or avenue by which any aggrieved employee may present his

grievance.

It gives or suggests a procedure to handle every grievance systematically.

It gives a way to relieve the worker from his dis-satisfaction with his job or working

condition.

It should lead employees to know what to do if they have grievance or where to

look or appeal.

It leads to more faith, in mutually agreed grievance procedure.

It serves as an outlet fro employees gripes, discontentment, and frustration. It acts

like a pressure wall on a steam boiler.

Superiors to be more careful while taking actions.

It can assist in minimizing discontent and dissatisfaction which may have adverse

effect upon co-operation.

7.5.Do’s In Handling Grievances.

Investigate and handle each and every case as though it may eventually result in an

arbitration hearing.

Talk with the employees about his grievance; give him a good and full hearing.

Get the union to identify specific contractual provisions allegedly violated.

Enforce the contractual time limits for the company to handle a grievance.

Determine whether all the procedural requirements, as dictated by agreement, have

been compiled with.

Visit the work area where the grievance arose.

Determine the relevant contract provisions, and understand the contract thoroughly.

Determine if there has been equal treatment of employees.

Examine the grievant’s personal record.

Fully examine prior grievance records.

Evaluate any political connotations of the grievance.

Permit a full hearing on the issue.

Identify the relief the union is seeking.

Treat the union representative as your equal.

Command the respect of the union representatives.

Hold your grievance discussions privately.

Provide the grievance process to non-union members as well.

Satisfy the union’s right to relevant information.

Demand that proper productivity levels be maintained during the processing of

incentive grievances.

Fully inform your own superior of grievance matters.

7.6.Don’ts In Handling Grievances

Discuss the case with union steward alone; the grievant should definitely be there.

Make agreements with individuals that are inconsistent with the labour agreement.

Apply the grievance remedy to an improper grievance.

Hold back the remedy if the company is wrong.

Admit the binding effect of a past practice.

Relinquish your authority to the union.

Settle grievances on the basis of what is fair. Instead, stick to the labour agreement

which, after all, should be your standard.

Make mutual consent agreements regarding future action.

Bargain over items not covered by the contract.

Concede implied limitations on your management’s rights.

Argue grievance issue off the work premises.

Treat as “arbitrable” claims demanding the disciplining or discharge of

management members.

Commit the company in areas beyond your limits of responsibility or familiarity.

Give away your copy of the written grievance.

Discuss grievances of striking employees during an illegal work stoppage.

Settle a grievance when you are in doubt.

Support another supervisor in a hopeless case.

Refer a grievant to a different form of adjudication.

Overlook the precedent value of prior grievance settlement.

Give long written grievance answers.

Trade a grievance settlement for a grievance withdrawal.

Negate the management’s right to promulgate plant rules.

Deny grievances on the premise that “your hands have been tied by the

management.”

Agree to informal amendments in the contract.

7.7.Tips For Successful Grievance Management

System

For projects with environmental and social impacts, grievances are a fact of life. How a

company responds (or is perceived to be responding) when such grievances surface is

important and can have significant implications for business performance. A grievance

mechanism should be scaled to fit the level of risks and impacts of a project. It should flow

from a company’s broader process of stakeholder engagement and business integrity

principles, and integrate the various elements of engagement discussed in the preceding

sections. In fact, having a good overall community engagement process in place and

providing access to information on a regular basis can substantially help to prevent

grievances from arising in the first place, or from escalating to a level that can potentially

undermine business performance. Thus, from a basic risk-management perspective, spending

the time and effort up front to develop a well-functioning process is a good investment.

Ideally, grievance procedures should be in place from the beginning of the social and

environmental assessment process and exist throughout construction and operations through

to the end of project life. As with the broader process of stakeholder engagement, it is

important that management stays informed and involved so that decisive action can be taken

when needed to avoid escalation of disputes. The following points are worth considering

when setting up a mechanism for addressing external grievances.

7.7.1 Process Is Important

•For affected communities and other stakeholder groups seeking to have their

complaints resolved, the perception of transparency and “fairness of process” is

important.

•A good process can enhance outcomes and give people satisfaction that their

complaints have been heard, even if the outcome is less than optimal.

•When designing grievance procedures, one should think about whether they will be

readily understandable, accessible and culturally appropriate for the local

population. It is important to clarify at the outset who is expected to use this

procedure, and to assure people that there will be neither costs nor retribution

associated with lodging a grievance.

•The entire process – from how a complaint is received and reviewed, through to

how decisions are made and what possibilities may exist for appeal – should be

made as transparent as possible through good communication.

7.7.2 Scale the Mechanism to Project Needs

•Grievance mechanisms should be designed to fit the context and needs of a

particular project. Smaller projects with relatively straightforward issues might have

simpler means of addressing complaints, such as through community meetings,

community liaison personnel and suggestion boxes allowing for anonymity.

• Larger, more complex projects will likely need a more formalized process and

mechanism and a higher level of dedicated resources for receiving, recording,

tracking, and resolving complaints. However, grievance mechanisms should not be

thought of as a substitute for a company’s community engagement process or vice-

versa.

• The two are complementary and should be mutually reinforcing. Even in the same

project, not all grievances can or should be handled in the same way.

7.7.3 Put It in Writing and Publicize It

• A policy or process for addressing complaints cannot be effective if nobody knows

about it. A company’s grievance procedures should be put into writing, publicized,

and explained to relevant employees.

• Simply put, people should know where to go and whom to talk to if they have a

complaint, and understand what the process will be for handling it.

• As with all information, it should be provided in a format and language readily

understandable to the local population and/or communicated orally in areas where

literacy levels are low.

• As a general rule, it should not be overly complicated to use nor should it require

legal counsel to complete.

7.7.4 Bring In Third Parties Where Needed

• Sometimes, ensuring “fairness of process” for affected individuals or groups

requires certain measures to level the playing field of perceived power.

• At a minimum, communities need to have access to information. Companies can

facilitate this by providing project related information in a timely and

understandable manner.

• In cases where significant imbalances in knowledge, power, and influence.

“Grievance mechanisms should not be thought of as a substitute for a company’s

community engagement process or vice versa. The two are complementary and

should be mutually reinforcing.”

A company may wish to reach out to other partners to assist in the process. In terms of

advocacy, an NGO might be brought in to assist local communities and advocate on

their behalf. Where mediation is desired, academic or other local institutions may be

sought out to play an “honest broker” role in mediating between the company and

stakeholder groups. In certain circumstances, it can be good practice for a company to

provide funding for such third-party advice or facilitation in a way that is acceptable to

all parties and doesn’t compromise the integrity of the process.

7.7.5 Make It Accessible

•Projects that make it easy for people to raise concerns and feel confident that these

will be heard and acted upon can reap the benefits of both a good reputation and

better community relations.

•One of the best ways to achieve this is to localize your points of contact. Hire people

with the right skills, training, and disposition for community liaison work and get

them into the field as quickly as possible.

•Talking with a familiar face who comes to the village regularly, or lives nearby,

creates an informal atmosphere in which grievances can be aired and sorted out, or

referred up the chain of command.

•This is usually more convenient and less intimidating to people than having to travel

distances to the company offices during business hours to file a formal complaint.

“Maintaining a regular presence in the local communities greatly helps to personalize

the relationship with the company and engender trust”.

7.7.6 Response time and transparency matter

• It is good practice for a company to publicly commit to a certain time frame in which

all recorded complaints will be responded to (be it 48 hours, one week or 30 days)

and to ensure this response time is enforced.

•This helps allay frustration by letting people know when they can expect to be

contacted by company personnel and/or receive a response to their complaint.

•A related issue is making sure that company personnel receiving grievances (typically

community relations staff) have the authority to resolve basic complaints themselves,

as well as a direct reporting line to senior managers if the issue is more serious or

costly to address.

7.7.7 Keep good records and report back

•Whether it is simply keeping a log book (in the case of small projects) or maintaining

a more sophisticated database (for bigger projects with more serious impacts),

keeping a written record of all complaints is critical for effective grievance

management.

•The record should contain the name of the individual or organization; the date and

nature of the complaint; any follow-up actions taken; the final result; and how and

when this decision was communicated to the complainant.

• In some countries, detailed personal information such as passport numbers are

required to officially “register” a grievance. This can be intimidating to stakeholders

and discourage them from using the mechanism, Overly personal data should

therefore be optional and kept confidential unless required to disclose to authorities.

• In addition to informing the complainant of the outcome (in writing where

appropriate), it is also good practice as part of the broader community engagement

process to report back periodically to communities and other stakeholder groups as to

how the company has been responding to the grievances it has received.

“It is good practice for a company to publicly commit to a certain time frame in

which all recorded complaints will be responded to”.

7.7.8 Don’t impede access to legal remedies

• If the project is unable to resolve a complaint, it may be appropriate to enable

complainants to have recourse to external experts. These may include public

defenders, legal advisors, legal NGOs, or university staff.

•A company may find that it can work in collaboration with these third parties and

affected communities to find successful resolution of the issues. However, this is not

always possible, and situations may arise where complainants will choose to pursue

legal recourse.

•Under these circumstances, companies should be familiar with the judicial and

administrative channels for dispute resolution available in the country of operation

and should not impede access to these mechanisms.

7.8.Grievance Redressal in Indian Industry

In Indian industry, adequate attention has not been paid to the settlement of grievances.

Legislative framework only indirectly deals with the redressal of individual grievances.

It consists of:

1. The Industrial Employment (standing orders) Act,1947: It provides that every

establishment employing 100 or more workers should standing orders which should

contain, among other matters, provision for means of redressing the workers grievance

against unfair treatment or wrongful exactions by the employer or servants.

2. The Factories Act, 1948: It provides for the appointment of welfare officers in every

factory wherein 500 or more workers are ordinarily employed. These officers are

generally entrusted with the task of dealing with grievance and complaints. However,

these provisions are not helpful due to the dual role which these officers are called upon

to play.

3. The Industrial Dispute Act, 1947: This law provides

• The employer in action to every industrial establishment in which fifty or more

workmen are employed shall provide for a grievance settlement authority for the

settlement of disputes connected with an industrial workman employed in the

establishment. The provisions of this authority shall be in accordance with rules

made in that behalf.

• Where an industrial dispute connected with an individual workman arises in an

establishment referred to above, a workman or any trade union of workmen of

which such workman is a member may refer such dispute to the grievance

settlement authority for settlement.

• The grievance settlement authority shall follow such procedure and complete its

proceedings with such period as may be prescribed.

• No reference shall be made to boards, courts or tribunals of any dispute referred to

in this section unless such dispute has been referred to the grievance settlement

authority concerned and the decision of the authority concerned and the decision of

the authority is not acceptable to any of the parties to the dispute.

7.9.Grievance Procedure Of TTK Healthcare

The company takes all possible efforts and endeavor to settle grievance(s) of any employee so

as to maintain better industrial Relations and discipline and also to preserve the motivation and

morale of all the employees. For this purpose, the following procedure has to be adopted to

ensure quick disposal of all grievances.

First Stage:

If a worker has any grievance about his work environment, condition of service etc. he shall

first approach his immediate supervisor for the settlement of such grievance. He will in turn

analyse the grievance and arrange for settlement of such grievance and the same shall be

communicated to the worker concerned verbally.

Second Stage:

If any supervisor fails to settle grievance as stated in the first stage, the worker concerned may

contact his department head through his supervisor. The department head, after hearing the

worker and the supervisor, will find out a solution to reach a settlement of the grievance of the

worker.

Final Stage:

If there is no settlement even after approaching his department head, the worker may contact

the head, personnel department along with an union office bearer who will in turn arrange for a

meeting with department head and the supervisor. After detailed discussion, the head,

personnel department in consultation with the department head and supervisor will try to find

out a solution for settling the worker’s grievance and the ultimate decision will be final and

binding.

As far as possible, all steps have to be taken to settle worker’s grievance at the first stage itself.

RESEARCH METHODOLOGY

8.1 Introduction

Research methodology is the systematic design, collection, analysis and reporting of data and

findings relevant to a specific marketing situation facing a company. It may be understood as a

science of study how research is done scientifically. In it we study the various steps that are

generally adopted by a researcher in studying his research problem along with the logic behind

them. Researchers not only need to know how to develop various tests, but also to apply

particular research techniques that are relevant. Research methodology can be undertaken by

many creative and affordable ways such as:

a) Engaging students or professors to carry out the projects.

b) Internet can be used to collect considerable information at very little cost by examining

competitor’s websites and accessing published data.

c) Checking out rivals also does it.

Research in common parlance refers to a search for knowledge. One can also define research

as a scientific investigation. The advanced learner’s Dictionary of current English lays down

the meaning of research as “A careful investigation or inquiry especially through search for

new facts in any branch of knowledge.”1

Redman and Mory defines research as “A systemized effort to gain new knowledge.”2 Some

people consider research as a movement from the known to unknown it is actually a voyage of

discovery.

D.Selsinger and M.Stephenson in the Encyclopedia of social sciences define research as “the

manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct

or verify knowledge, whether that knowledge aids in construction of theory or in the practice

of an art.”

8.2 Objectives of Research

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden and

which has not been discovered as yet. Though each research study has its own specific

purpose, we may think of research objectives as falling into a number of following broad

groupings:

1) To gain familiarity with a phenomenon or to achieve new insights into it (studies with

this objective in view are termed as exploratory or formulative research studies).

2) To portray accurately the characteristics of a particular individual, situation or a group

(studies with this objective in view are known as descriptive research studies).

3) To determine the frequency with which something occurs or with which it is associated

with something else (studies with this objective in view are known as diagnostic

research studies).

4) To test a hypothesis of a casual relationship between variables (such studies are known

as hypothesis- testing research studies).

8.3 Types Of Research

The basic types of research are as follows:

8.3.1 Descriptive vs. Analytical.

8.3.2 Applied vs. Fundamental.

8.3.3 Quantitative vs. Qualitative.

8.3.4 Conceptual vs. Empirical.

8.3.1 Descriptive vs. Analytical:

Descriptive research includes surveys and fact-finding enquires of different kinds. The

major purpose of descriptive research is description of the state of affairs as it exists at

present. The main characteristic of this method is that the researcher has no control over

the variables; he can only report what has happened or what is happening.

In analytical research, on the other hand, the researcher has to use facts or information

already available, and analyze these to make a critical evaluation of the material.

8.3.2 Applied vs. Fundamental:

Applied research aims at finding a solution for an immediate problem facing a society

or an industrial/business organization, whereas fundamental research is mainly

concerned with generalizations and with formulation of a theory. The central aim of

applied research is to discover a solution for some pressing practical problem, whereas

basic research is directed towards finding information that has a broad base of

applications and thus, adds to the already existing organized body of scientific

knowledge.

8.3.3 Quantitative vs. Qualitative:

Quantitative research is based on the measurement of quantity or amount. It is

applicable to phenomena that can be expressed in terms of quantity. Qualitative

research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena

relating to or involving quality or kind.

8.3.4 Conceptual vs. Empirical:

Conceptual research is that related to some abstract idea(s) or theory. It is generally

used by philosophers and thinkers to develop new concepts or to reinterpret existing

ones. On the other hand, empirical research relies on experience or observation alone,

often without due regard for system and theory. It is data –based research, coming up

with conclusions which are capable of being verified by observation or experiment.

8.4 Research Approaches

There are two basic approaches to research. They are,

8.4.1 Quantitative approach.

8.4.2 Qualitative approach.

8.4.1 Quantitative approach:

Quantitative approach involves the generation of data in quantitative form which can be

subjected to rigorous quantitative analysis in a formal and rigid fashion. This approach

can be further sub- classified into

a) Inferential approach.

b) Experimental approach.

c) Simulation approach.

a) The purpose of Inferential Approach to research is to form a database from

which to infer characteristics or relationships of population.

b) Experimental Approach is characterized by much greater control over the

research environment and in this case some variables are manipulated to

observe their effect on other variables.

c) Simulation Approach involves the construction of an artificial environment

within which relevant data and information can be generated. Simulation data

can also be useful in building models for understanding future conditions.

8.4.2 Qualitative approach:

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour. Research in such a situation is a function of researcher’s

insights and impressions. Such an approach to research generates results either in non-

quantitative form or in the form which are not subjected to rigorous quantitative

analysis.

8.5 Research Process

Research process consists of series of appropriate actions or steps necessary to effectively

carry out research and the desired sequencing of these steps.

Research Process

STEP 1: Problem Identification

Problem Identification

Sample Design

Research Design

Sampling Plan

Questionnaire Design

Preparation of Report

Analysis of Data

Collection of Data

Pilot Study

Follow - Up

In research process, the first and foremost step is that of selecting and properly defining

a research problem. A researcher must find the problem and formulate it so that it

becomes susceptible to research. A research problem, in general, refers to some

difficulty which a researcher experiences in the context of either a theoretical or

practical situation and wants to obtain a solution for the same.

STEP 2: Research Design

A research is purely and simply the framework or plan for a study that guides the

collection and analysis of the data.

Types of research

There are 3 basic types of research design. They are:

Exploratory Research Design.

Descriptive Research Design

Experimental Research Design

Exploratory research design:

This type of research concerned with discovering the general nature of a

problem and the factor that relate its design is flexible and may proceeds without a fixed plan.

It is generally based on secondary data and convenience samples. It is a study in search of

secondary data. It is also a survey of knowledgeable persons and includes methods like group

discussions, brainstorming, concept storing. It involves analysis of selected cases.

Descriptive research design:

It includes survey and fact finding inquiries of different kinds. The studies concerned

with specific predictions, with narration of facts and characteristics concerning individual,

group or situation are all examples of descriptive research studies.

Experimental research design:

This research design is also known as hypothesis- testing research. Here the researcher

tests the hypothesis of casual relationships between variables. Such studies require procedures

that will not only reduce bias and increase reliability, but will permit drawing inferences about

causality.

STEP 3: Sample Design

All the items under consideration in any field of inquiry constitute a “universe” or

“population”. The items so selected constitute what is technically called a sample.

Sample design is a definite plan determined that before any data are actually collected for

obtaining a sample from a given population. Samples can either probability samples or

non-probability samples.

Probability samples are those based on:

•Simple random sampling.

•Systematic sampling.

•Stratified sampling.

•Cluster/Area sampling.

Non-probability samples are those based on:

•Convenience sampling.

• Judgment sampling.

•Quota sampling techniques.

Simple random sampling is used to determine the sample size. This sampling is used

because every possible sample has a known and equal chance of selection. A simple

random sample is a sample generated by a process that guarantees, in the long run, that

every possible sample of a given size will be selected with known and equal probability.

STEP 4: Sampling Plan

The sampling plan calls for three decisions.

a) Sample Unit – WHO IS TO BE SURVEYED,

Sample unit consists of the employees and labours of TTK Healthcare Ltd.

b) Sample Size – HOW MANY PEOPLE ARE TO BE SURVEYED.

The numbers of respondents surveyed in TTK Healthcare Ltd are 200.

c) Sample Procedure –HOW SHOULD THE RESPONDENTS BE CHOSEN.

To obtain a respondent of the sample, a proper sample could be used. This study has

made use of proper sample in which area sample type has been used.

STEP 5: Questionnaire Design

This method of data collection is very common and has been used to perform this

research. The questions where carefully framed keeping in mind the objectives of the

research. The questionnaire was prepared in an unbiased manner giving enough scope to

the employees to speak out what they feel. A total of 21 questions were asked in the

questionnaire.

Types of Questionnaire:

There are four types of Questionnaires, they are as follows:

Non- disguised structured questionnaire

Non- disguised non-structured questionnaire

Disguised structured questionnaire

Disguised non-structured questionnaire

The Non- disguised structured questionnaire is used for the study. This approach employs a

standardized questionnaire to collect the data on belief, feelings and attitudes from the

respondents. So nothing about the purpose of study is concealed from the respondents.

Types of Questions:

Questions are of two types, they are as follows:

Open-ended questions

Close-ended questions

Open-ended questions: These questions are used to get the suggestion from the

respondents in order to get feedback to the company.

Close-ended questions:

It is of two types, they are as follows

• Dichotomous (Yes/No) questions: in this type of questions the respondents are

given two choices in which the respondents has to select one. For this type of

questions we can apply statistical tools like internal estimate method.

E.g.) Are you aware of the grievance redressal system that is prevailing within the organization?

a) Yes b) No

• Multiple choices questions: in this type of questions the respondents are given 4-5

choices in which the respondents has to select one. For this type of questions we

can apply statistical tools like Chi-square and weighted average method.

E.g.) Is the grievance procedure followed in your organization easy to understand?

a) Very Easy b) Easy c) Neither Easy Nor Difficult d) Difficult

e) Very Difficult

Advantages of Questionnaire:

It is free from bias of the interviewer; answers are in respondent’s own words.

Respondents who are not easily approachable can also be reached conveniently.

Large samples can be made use of and thus the results can be made more dependable

and reliable.

Finally, Questionnaire was developed on the basis of objectives having close-ended, having

multiple-choice questions. A Non-disguised well-structured close-ended questionnaire was

used to conduct the study.

STEP 6: Collection of Data

The type of data collection adopted for this research was primary data. Data was

collected from the employees personally with the help pf questionnaire. Hence, more

quantitative and better responses were obtained from the employees.

While deciding about the method of data collection to be used for the study, the

researchers should keep in mind two types of data.

• Primary Data – are those, which are collected afresh and for the first time, and thus

happened to be original in character.

• Secondary Data – are those which have already been collected by someone else and

which have already been passed through the statistical process.

Collection of primary data:

We collect primary data during the course of doing the experiments in an experimental

research but in case we do research of the descriptive type and perform surveys, whether

sample surveys or census surveys, then we can obtain primary data either through

observation or through direct communication with respondents in one form or another or

through personal interviews.

Collection of Secondary data:

Secondary data means data that are already available i.e., they refer to the data, which

have been already collected and analyzed by someone else. When the researcher uses

Secondary data, then he has to look into various sources from where he can obtain them.

In this case he is certainly not confronted with the problems that are usually associated

with the collection of original data. Secondary data may either be published data or

unpublished data. Usually published data are available in:

•Various publications of the central, state and local governments.

•Various publications of foreign governments or of International bodies and their

subsidiary organizations.

•Technical and trade journals.

•Books, Magazines and newspaper.

•Reports and publication of various associations connected with business and industry,

banks, stock exchanges.

•Reports prepared by research scholars, universities, Economies.

Selection of appropriate methods for data collection:

The researcher must judiciously select the methods for their own study, keeping in mind

the following factors:

• Nature, Scope and object of enquiry

• Availability of funds

• Time factors

• Precision required

Period of project: Jan 2009 – March 2009.

Area covered: TTK Healthcare Ltd.

STEP 7: Pilot Study

The data gathering exercise was begun with a survey pretest analysis. Samples of 20

employees were interviewed to assess the suitability of the questionnaire design. On the

basis of the response entertained by them, and analysis of the same, questionnaire was

found to be suitable for the study.

STEP 8: Analysis of Data

The purpose of this analysis is to interpret and draw conclusion from the mass of

collected data. The statistical tools applied to obtain the results are as follows:

Statistical Tools Applied

The collected data is processed, analyzed and interpreted to obtain a certain level of

quality in the analysis of data. Editing is the process by which data collected is prepared

for subsequent coding which in turn is the procedure of classifying the answers to a

question into meaningful categories. After data is collected, it is processed; various

suitable statistical techniques were used to obtain the results.

1) Tabulation Method

2) Percentage Method

3) Bar Diagram

a) Simple Bar Diagram

b) Multiple Bar Diagram

4) Pie Diagram

The statistical tools used in this study are

1. Chi-Square Test

2. Interval Estimation Method

3. Weighted Average Method

4. Correlation Analysis

5. Parametric Test ( t – Test)

Tabulation Method

The data has to be presented in a tabular form in an orderly way before the analysis and

interpretation of data. Tabulation is defined as “the order of systematic representation of

numerical data and columns, designed to facilitate the comparison between the figures.”

Tabulation is a statistical tool used for condensation of the data in a statistical tool used

for condensation of the data in a statistical process. Thus all the data collected are

tabulated for easy analysis.

Percentage Method

Percentages refer to obtain a kind of ratio, which are used in making comparison between

2 or more series of data. Percentages are used to describe relationships.

Bar Diagram

Bar diagram is a popular form of diagrammatic representation. This diagram consists of

series of rectangular bars standing on a common base. This comparison among the bars is

only based on their lengths. The length of the bar diagram is proportional to their

magnitude.

Simple Bar Diagram:

A simple bar diagram represents single variables like sales, production, profits, etc.

Multiple Bar Diagrams:

Multiple bar diagram is used for comprising two or more sets of statistical data. Bars

are constructed side by side to represent the sets of values for comparison.

Pie Diagram

The pie diagram ranks its components and a circle can be divided in to sectors. As their

360 degrees at the centers, proportionate sectors are cut taking the whole data equal to

360 degrees.

Chi-Square Test

Chi-square test is an important test among the several tests of significance developed by

statisticians. Chi-square, symbolically written as χ2, as a non-parametric test, it can be

used to determine if categorical data shows any dependency or the two classifications is

independent. Test enables us to explain whether or not attributes are associated. Chi-

square is not a measure of the degree of relationship or the form of relationship between

two attributes, but is simply a technique of judging the significance of such association or

relationship between two attributes. In study we see whether the target fixed and opinion

of the program is independent and target fixed and extension of the program independent.

Test will help in deciding this issue. In such a situation, we proceed with the hypothesis

that the two attributes are independent. On this basis we first calculate the expected

frequencies and then work out the value of chi-square. If the calculated value is less than

that of the table value at a certain level of significance for given degree of freedom, we

conclude that the null hypothesis stands which means the two attributes are independent

or not associated. But if the calculated value is greater than its table value our inference

then would be that the null hypothesis does not hold good which means the two attributes

are associated.

Chi-square is calculated as follows:

χ2 = Σ (Oij-Eij) 2

Eij

Where,

O- Observed frequency of the cell.

E- Expected frequency of the cell.

In a contingency table, the degree of freedom is worked out as follows:

Degree of freedom= (c-1)* (r-1)

Where,

c- Number of columns.

r- Number of Rows.

Interval Estimation

Interval estimation helps to estimate the population parameters with the help of

corresponding values from simple proportion variation.

The formulae used to calculate interval estimation scale is:

{(p^-(1.96 * S.E)) < P < (p^ + (1.96 * S.E))}

Where, S.E = Standard error

N = Sample size

Weighted Average Method

The respondents have used this method to assign ranks as chosen. This method is very

helpful in selecting the most important criteria selected by the respondents. Weighted

Average Method enables us to calculate an average that takes into account the importance

of each value to the overall total value.

The formula for calculating the Weighted Average Method is:

Net Score = Σ (Weighted average for the column * No of Respondents in the column)

__________________________________________________________

Total weight

Correlation Analysis

This analysis helps us to determine the strength of the linear relationship between the two

variables X, Y, in other words as to how strongly are these two variables correlated. The

correlation method used in this study is Karl Pearson’s Coefficient of Correlation (or

Simple Correlation) which is the most widely used method of measuring the degree of

relationship between two variables. This coefficient assumes the following:

i. that there is linear relationship between the two variables;

ii. that the two variables are casually related which means that one of the variables is

independent and the other one is dependent; and

iii. a large number of independent causes are operating in both variables so as to

produce normal distribution.

Karl Pearson’s Coefficient of Correlation(r) can be worked out thus.

r = (cov (u, v) / (σu * σv))

where,

Covariance (u, v) = (uv/N) – u v

σu = ((u2/N)- u2)

σv = ((v2/N) - v2)

u = u / N

v = v / N

Percentage of Determination = r2 * 100

Parametric Test (t - Test)

This test is based on t-distribution and is considered as an appropriate test for judging the

significance of a sample mean or for judging the significance of difference between the

means of two samples in case of small samples when population variance is not known

(in which case we use variance of the sample as an estimate of the population variance).

In case two samples are related, we use paired t- test( or what is known as difference test)

for judging the significance of the mean of difference between the two related samples.

Formula

t = (X - µ) / (σs / √n)

σs = √∑ (Xi- X)2 / (n – 1)

X = ∑ Xi / n

STEP 9: Preparation of Report

After the data analysis is completed, the research must prepare a repot and communicate

the conclusion and recommendation to management. This is a key step in the process of

market research.

STEP 10: Follow-Up

After the company has spent a conversable amount of efforts and money and conducting

the research and preparing a report, it is important for the findings to be used.

CONCLUSION

The overall performance of the services in the workshop is satisfactory to many

of the customers. Nothing in the world can be perfect. Some faults are seen in the

services though not major ones but some of the problems may give side effect and make

cause more trouble in the future. So the problems need to be identified and solved

immediately. Some of the main things are as follows.

Prompt delivery should be made.

Charges are high and need to be decreased.

The efficiency of workers is to be increased.

Check list should be maintained so that any other extra jobs that the

customers are unaware can be solved.

If the problems identified are solved effectively, then the customer satisfaction

level increases on the organization.

BIBLIOGRAPHY

Websites:

www.google.com

www.wikipedia.com

www.healthindia.com

www.ttkhealtcare.com

www.indianmedicalassociation.org