Registration Form

1. Name of the Student : Yashwanth R

2. Name of the Guide : Prof. Harshitha

3. Proposed research area : performance management

4. Proposed research topic : performance appraisal of Nandhini (KMF) company

Student’s Signature:

Guide’s Signature with date

 3

PERFORMANCE APPRISAL OF NANDHNI

( KMF ) COMPANY
Mini Project work submitted in partial fulfillment of the requirements for the

award of the Degree of

BACHELOR OF COMMERCE
of

CMR UNIVERSITY

By

Name: YASHWANTH R

Reg. No. : 22CBCOA049

Under the guidance of

Name of guide. : Prof. Harshitha

CMR university

CMR UNIVERSITY
2021 Batch

II Semester

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DECLARATION (BY THE STUDENT)

I hereby declare that “performance appraisal of Nandhni ( KMF) company” is the result of
the mini project work carried out by me under the guidance of Prof. Harshitha Guide in
partial fulfillment for the award of Bachelor’s Degree in Commerce by CMR University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree Certificate.

Place: Bangalore Name : Yashwanth R

Date: Register Number: 22CBCOA049

 5

CERTIFICATE OF ORIGINALITY
(To be given by Guide and Department)

Date:

This is to certify that the Mini Project work titled “Performance appraisal of Nandhni (KMF )
company" is an original work of Mr. Yashwanth R ; bearing University Register Number
22CBCOA049 and is being submitted in partial fulfillment for the award of the Bachelor’s
Degree in Commerce of CMR University. The report has not been submitted earlier either to
this University for the fulfillment of the requirement of a course of study

SIGNATURE OF GUIDE SIGNATURE OF THE SCHOOL HEAD

DATE: DATE:

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 Table of Contents

Particulars Page No

DECLARATION
CERTIFICATE OF ORIGINALITY
ACKNOWLEDGEMENT
LIST OF TABLES
LIST OF FIGURES
LIST OF ABBREVIATIONS
EXECUTIVE SUMMARY
CHAPTERS:
CHAPTER NO.1
CHAPTER NO. 2
CHAPTER NO.3
CHAPTER NO. 4
CHAPTER NO. 5
 7

CHAPTER 1:
INTRODUCTION

Performance management can be defined as a systematic process to improve

organizational performance by developing the performance of individuals and
teams working with an organization. It is a means of getting better results from
the organization, teams and individuals by understanding and managing their
performance within a framework of planned goals, standards and competence
requirements. In other words, performance management is the process of
managing an organization’s management strategy. This is how plans are
converted into desired outcomes in organizations.
How is performance management works?
A performance management system tracks the performance of employees
in a manner that is consistent and measurable. The system relies on a
combination of technologies and methodologies to ensure people across the
organization are aligned with – and contributing to – the strategic objectives of
the business.

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A performance management system relies on three key processes:
1. Plan and act with goal management
● Align employee performance to the objectives of the organization.
● Assign work that is meaningful and fulfilling to increase employee
engagement.
● Quickly adapt goals when business priorities shift.
2. Monitor with continuous performance management
● Monitor the goals of each employee to ensure ongoing alignment with
organizational goals.
● Provide feedback and guidance to improve performance.
● Recognize good results as they happen.
3. Evaluate and recognize through performance assessments
● Assess performance consistently and accurately.
● Recognize and reward strong performers.
● Use data-driven insights from the system to quantify the value your
workforce delivers to the business.

Importance of performance management –

a. It Provides a Look into the Future
By consistently monitoring and managing workplace performance,
leaders can see potential future problems. Like with any type of issue,
early detection is key. The earlier problems are confronted the less effect
that they will likely have.
b. Helps Create Development and Training Strategies
The organization could then create training programs to change the
issue into an opportunity for improvement.
c. Provides Clarity in the Organization
It is a common problem that many employees are unsure of what
exactly their role entails, what is expected of them, and who they are to
report to.
d. Provides the Opportunity for Exchanging Feedback
Effective performance management provides an avenue through which
both the employer and the employee exchange feedback. In addition to
gaining insight, employees often feel much more valued when they can
voice their thoughts.
e. Increases Employee Retention Performance management also encourages
organizations to reward and recognize their employees. Lack of
 9

recognition is a big reason some employees leave a job and look for
another.
f. Boosts Employee Engagement
Performance management, when it truly involves employees, will boost
employee engagement. When there is a disconnect between management
and employees, it is almost as though employees are just going through
the motions of the day.
g. It encourages employee recognition and reward
Most businesses tend to neglect the importance of recognizing and
rewarding their employees. Doing that can be greatly disastrous to your
organization.
h. It helps in boosting employee productivity and engagement
One remarkable benefit of an engaged workforce is that they stay
longer, actively contribute to the company, and deliver better results.
i. Helps to enforce goal setting and achievement
A good performance management system helps employees to
understand the goals of the company and what they are expected to do to
achieve these goals. This means they understand how their contributions
affect the overall growth of the business.
j. It offers mentoring for increasing performance
The ultimate aim of performance management is to improve
performance. It will help managers to devise ways through which they
can increase performance while providing the opportunity to talk about
career prospects and direction.

Performance-Management Programs
Although performance-management software packages exist, templates are
generally customized for a specific company. Effective performance-
management programs, however, contain certain universal elements, such as:

Aligning employees' activities with the company's mission and goals.

Employees should understand how their goals contribute to the company's
overall achievements.
Developing specific job-performance outcomes. What goods or services does
my job produce? What effect should my work have on the company? How
should I interact with clients, colleagues, and supervisors? What procedures
does my job entail?

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Creating measurable performance-based expectations. Employees should give
input into how success is measured. Expectations include results—the goods
and services an employee produces; actions—the processes an employee uses to
make a product or perform a service; and behaviors—the demeanor and values
an employee demonstrates at work.
Defining job-development plans. Supervisors and employees together should
define a job's duties. Employees should have a say in what types of new things
they learn and how they can use their knowledge to the company's benefit.
Meeting regularly. Instead of waiting for an annual appraisal, managers and
employees should engage actively year-round to evaluate progress

Advantages of Performance Management:

Increased communication: Performance management provides a platform for

open and ongoing communication between employees and managers. This
facilitates better understanding of job expectations, organizational goals, and
performance standards.

Clarity of goals: Setting performance goals and expectations helps employees to

understand what is expected of them, and how their work contributes to the
overall success of the organization. Clear goals and expectations also enable
employees to align their performance with the organization's objectives.

Employee engagement: Performance management fosters a sense of ownership

and engagement among employees by providing them with the opportunity to
be involved in setting their goals and objectives, and in assessing their own
performance.

Improved performance: Performance management provides regular feedback

and coaching to employees, which helps to improve their performance. This, in
turn, leads to improved productivity, quality of work, and customer satisfaction.
 11

Disadvantages of Performance Management:

Time-consuming: Performance management can be a time-consuming process

for managers and employees. The process involves setting goals, providing
feedback, coaching, and evaluating performance, which can be time-consuming
and resource-intensive.

Resistance to change: Performance management can be met with resistance

from employees who are not used to receiving feedback or who feel that the
process is too rigid. This can create a negative experience for employees, which
can negatively impact their performance and engagement.

Inadequate training: Managers may not be adequately trained in conducting

performance management, which can lead to ineffective feedback and coaching.
This can also result in demotivation and decreased morale among employees.

Limited focus on future performance: Performance management can focus too

much on past performance, which may not be an accurate predictor of future
performance. This can limit the effectiveness of the process in terms of
facilitating continuous improvement and development.

Risk of bias: Performance management is subject to the same biases that can
impact other human assessments, such as rater bias, halo effect, and recency
bias. This can result in subjective evaluations that do not accurately reflect
employee performance.

Overemphasis on metrics: Performance management can place too much

emphasis on metrics and numbers, which may not accurately reflect the
complexity and context of employee performance. This can lead to an
overreliance on quantitative data and a limited understanding of qualitative
factors that impact employee performance.

In conclusion, performance management has both advantages and

disadvantages. To be effective, organizations need to focus on creating a

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supportive and collaborative culture that emphasizes ongoing communication,
feedback, and employee development. This requires a commitment to ongoing
training and development for managers and employees, clear performance
standards and metrics, and a willingness to adapt and change as needed to
ensure that the process remains relevant and effective.

Talent development: Performance management provides opportunities for

employee development and growth through coaching, mentoring, and training.
This helps to retain and develop talent within the organization.

Fair and objective assessments: Performance management provides a fair and

objective way to assess employee performance by using data-driven metrics and
clear performance standards. This reduces the risk of subjective evaluations and
rater bias.
 13

Performance appraisal
Introduction:

A performance appraisal is a systematic and periodic process of measuring

an individual’s work performance against the established requirements of the
job. It’s a subjective evaluation of the employee’s strengths and weaknesses,
relative worth to the organization, and future development potential.
How and Why performance appraisal used
The performance appraisal process:
Individual appraisals on employee performance are conducted. A one on one
interview is scheduled between the manager and employee to discuss the
review. Future goals should be discussed between employee and manager. A
signed-off version of the performance review is archived.
5 steps
● Develop an evaluation form.
● Identify performance measures.
● Set guidelines for feedback.
● Create disciplinary and termination procedures.
● Set an evaluation schedule.
Why?
Performance appraisals are essential for the growth of a company and
the employee. It helps the company to find out whether the employee is
being productive or is a liability. It helps the employee to find out where
his / her career is heading. It is an essential part of HR management. A
performance approval need not be a stressful event for the HR /
supervisor or for the employee.

Relationship between performance management and

performance appraisal

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 The connection between performance appraisal and performance
management is that performance appraisals are the most common tool
used for performance management. Performance management requires
accurate tools to measure and monitor the performance of employees.
Performance appraisals allow managers to evaluate performance
thoroughly, while also providing the employee with goals and objectives
to increase future performance. This appraisal is then passed to human
resource (HR) professionals for performance management.

 The Types of Performance Appraisals?

Performance appraisals can be broken down into four distinct significant types:

 The 360-Degree Appraisal. The manager gathers information on the

employee’s performance, typically by questionnaire, from supervisors,
co-workers, group members, and self-assessment.
 Negotiated Appraisal. This type of appraisal uses a mediator to help
evaluate the employee’s performance, with a greater emphasis on the
better parts of the employee’s performance.
 Peer Assessment. The team members, workgroup, and co-workers are
responsible for rating the employee’s performance.
 Self-Assessment. The employees rate themselves in categories such as
work behavior, attitude, and job performance.
Note that some organizations use several appraisal types during the same
review. For instance, a manager could consult with the employee’s peers and
assign a self-assessment to the employee. It doesn’t have to be a case of
either/or.

Performance appraisals come in many forms. Managers and human resources

staff responsible for these appraisals need to choose the best methods based on
the size of their organization and what sorts of responsibilities the employees
fulfill.
 15

 Methods of performance appraisals include:

 720-Degree feedback: You could say that this method doubles what you
would get from the 360-degree feedback! The 720-degree feedback
method collects information not only from within the organization but
also from the outside, from customers, investors, suppliers, and other
financial-related groups.
 The Assessment Center Method: This method consists of exercises
conducted at the company's designated assessment center, including
computer simulations, discussions, role-playing, and other methods.
Employees are evaluated based on communication skills, confidence,
emotional intelligence, mental alertness, and administrative abilities. The
rater observes the proceedings and then evaluates the employee's
performance at the end.
 Behaviorally Anchored Rating Scale (BARS): This appraisal measures
the employee’s performance by comparing it with specific established
behavior examples. Each example has a rating to help collect the data.
Checklist Method: This simple method consists of a checklist with a series of
questions that have yes/no answers for different traits.
 Critical Incidents Method: Critical incidents could be good or bad. In
either case, the supervisor takes the employee’s critical behavior into
account.
 Customer/Client Reviews: This method fits best for employees who offer
goods and services to customers. The manager asks clients and customers
for feedback, especially how they perceive the employee and, by
extension, the business.
 Field Review Method: An HR department or corporate office
representative conducts the employee's performance evaluation.
 Forced Choice Method: This method is usually a series of prepared
True/False questions.

 General Performance Appraisal: This method involves continuous

interaction between the manager and the employee, including setting
goals and seeing how they are met.
 Human Resource Accounting Method: Alternately called the “accounting
method” or “cost accounting method,” this method looks at the monetary

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 value the employee brings to the company. It also includes the company’s
cost to retain the employee.
 Management by Objective (MBO): This process involves the employee
and manager working as a team to identify goals for the former to work
on. Once the goals are established, both parties discuss the progress the
employee is making to meet those goals. This process concludes with the
manager evaluating whether the employee achieved the goal.
 Performance Tests and Observations: This method consists of an oral test
that measures employees' skills and knowledge in their respective fields.
Sometimes, the tester poses a challenge to the employee and has them
demonstrate their skills in solving the problem.
 Project Evaluation Review: This method involves appraising team
members at the end of every project, not the end of the business year.
 Ratings Scales: These ratings measure dependability, initiative, attitude,
etc., ranging from Excellent to Poor or some similar scale. These results
are used to calculate the employee's overall performance.

● What Are the Objectives of a Performance Appraisal?

Although we've already mentioned some of the objectives and methods of

performance appraisals, let's clearly delineate them in their easy-to-understand
section. First, a performance appraisal aims to:

Provide helpful information to help make decisions regarding transfers,

promotions, terminations, etc.
Supply the necessary data to identify employee training and development
program requirements.
Help make confirmation/acceptance decisions regarding employees who have
completed a probationary period.
Help make decisions regarding raising an employee's salary, offering incentives,
or changing variable pay.
Clarify expectations and facilitate communication between managers and
subordinates.
Help employees realize their whole potential performance level.
 17

Collect relevant employee data and keep the records for various future
organizational purposes.
What Is a Performance Appraisal: The Importance of Performance Appraisals?
Organizations need performance appraisals to accurately gauge every
employee's performance and confirm that they are working in the right area and
doing the job they were hired for. In addition, good performance appraisals
increase efficiency and help cut costs.

Regular performance appraisals also help assure that credit is given where it’s
due, which helps keep morale high.

What are performance appraisals used for?

Performance appraisals are used to review the job performance of an employee
over some period of time. These reviews are used to highlight both strengths
and weaknesses to improve future performance.

What are the benefits of a performance appraisal?

When executed correctly, performance appraisals can pay off big. Among
other things, they are capable of boosting employee morale and engagement,
clarifying expectations, helping to get the best out of staff, and incentivizing
hard work and dedication.

It’s not just companies that benefit, either. Open lines of communication make
it easier for employees to raise concerns, express themselves, find their right
path, feel appreciated, and be rewarded when they do a good job.

When should a performance appraisal take place?

Performance management is an ongoing process. Throughout the year,
managers are encouraged to engage with employees to establish goals, note
progress, and provide feedback. Formal reviews or appraisals often take place
on a yearly or quarterly basis.
The Bottom Line

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Communication between employees and their manager or supervisor can be
very rewarding. Performance appraisals are capable of boosting morale and
output, benefiting all parties.

That’s assuming they go well, though. Sadly, many performance appraisals

aren’t executed in the most effective way. In many cases, they may be rushed
or simply follow a set framework that perhaps doesn’t always benefit every
type of industry or person. Poorly handled appraisals can be
counterproductive. Without a bespoke approach and careful consideration of
how to structure meetings and set reasonable targets, the performance
appraisal process can potentially cause all types of problems.

● Advantages of Performance Appraisals

Documentation: A PA provides a document of employee performance over a
specific period of time. It’s a piece of paper that can be placed in an employee
file.

Structure: This process creates a structure where a manager can meet and
discuss performance with an employee. It forces the uncomfortable
conversations that often need to happen.

Feedback: Employees crave feedback, and this process allows a manager the
opportunity to provide the employee with feedback about their performance
and discuss how well the employee goals were accomplished. It also provides
an opportunity to discuss employee development opportunities.

Clarify Expectations: Employees need to understand what is expected of them

and the PA process allows for a manager to clarify expectations and discuss
issues with their employee.
 19

Annual Planning: It provides a structure for thinking through and planning the
upcoming year and developing employee goals.

Motivation: The process should motivate employees by rewarding them with a

merit increase and as part of a comprehensive compensation strategy.

● Disadvantages of Performance Appraisals

Creates Negative Experience: If not done right, the performance appraisal can
create a negative experience for both the employee as well as the manager.
Proper training on processes and techniques can help with this.

Time Consuming: Performance appraisals are very time consuming and can be
overwhelming to managers with many employees. I’ve known managers who
were responsible for doing an annual PA on hundreds of employees.

Natural Biases: Human assessment are subject to natural biases that result in
rater errors. Managers need to understand these biases to eliminate them from
the process.

Waste of Time: The entire process can be a waste of time if not done
appropriately. Think about the time investment when the end result is negative.
It is time wasted on all fronts.

Stressful Workplace: Performance appraisals can create stressful work

environments for both employees and managers. Proper training can help to
reduce the stress involved in the process.

Finally, performance appraisals are only as good as the performance

management system it operates within.

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Organizations that only do performance appraisals for the sake of doing them
are wasting their time.

But organizations that incorporate performance appraisals into a comprehensive

performance management system and use them to implement business goals
have an advantage for accomplishing their goals and ultimately their strategic
plan.

If you are interested in learning more about performance appraisals, you might
find the book Performance Appraisal Source Book: A Collection of Practical
Samples helpful.

I can provide you with further information about the advantages and
disadvantages of performance appraisals.
 21

CHAPTER 2 :
COMPANY PROFILE

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the

Apex Body for the dairy co-operative movement in Karnataka. It is the
second largest dairy co-operative amongst the dairy cooperatives in the
country. In South India it stands first in terms of procurement as well as
sales. One of the core functions of the Federation is marketing of Milk
and Milk Products. The Brand "Nandini" is the household name for Pure
and Fresh milk and milk products. KMF has 16 Milk Unions covering all
the districts of the State which procure milk from Primary Dairy
Cooperative Societies(DCS) and distribute milk to the consumers in
various Towns/Cities/Rural markets in Karnataka.
Karnataka Dairy Development Cooperation(KDDC), the first ever World
Bank/ International Development Agency funded Dairy Development
Program in the country started in Karnataka on co-operative lines with
the organisation of Village Level Dairy Co-operatives in 1974. The AMUL
pattern of dairy co-operatives started functioning in Karnataka from
1974-75 with the financial assistance from World Bank/IDA, Operation
Flood II & III. The Anand Pattern three tier organisation structure – Dairy
Cooperative Societies at the village level, District Milk Unions at the
District level to take care of the procurement, processing and marketing
of milk and provide technical input services for enhancing milk

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production at producers level and Federation at the state level to co-
ordinate the growth of the sector in the State, are resolutely and
harmoniously working hand-in-hand in creating self-sustaining rural
economy based on cooperative dairying. KMF is one of the few
federations in the country, who have converted dairying from a
subsidiary occupation into an industry.
Coordination of activities among the Unions and developing market for
Milk and Milk products is the responsibility of KMF. Marketing Milk in the
respective jurisdiction is organized by the respective Milk Unions.
Surplus/deficit of liquid milk among the member Milk Unions is monitored
by the Federation. While the marketing of all the Milk Products is
organized by KMF, both within and outside the State, all the Milk and
Milk products are sold under a common brand name NANDINI.

The Federation is striving to create a self-reliant and vibrant rural

economy in Karnataka by providing a supportive and conducive
environment for the growth of Dairy Cooperatives as autonomous
economic and social institutions. The Federation is largely successful in
realizing the objectives of dairying during the last four decades of dairy
development in Karnataka State. It is by-and-large successful in
providing a viable subsidiary occupation to unemployed rural poor so as
to raise their income earning capacities and to supply adequate quantity
of quality milk at reasonable prices to urban consumers.
The results of effective dairy development by KMF have made a far-
reaching and extensive impact on the rural landscape in Karnataka. The
best remunerative milk purchase price to farmers, efficient and timely
input services, delivered at the door-steps to farmers, such as, unfailing
veterinary health services to any remote village, quality artificial
insemination for breed improvements, supply of balanced cattle feed at
less than the market price, etc., have made the farmers to increasingly
patronize their cooperative. The extent of patronization by farmers is so
complete, that the dominant share of marketable surplus milk of farmers
in Karnataka is procured by KMF dairies and hardly there is any
organized private dairy milk procurement, which is widely prevalent in
other parts of the country.
 23

Karnataka Milk Federation

Trade name Nandini

Native name ಕರ್ನಾಟಕ ಸಹಕಾರ ಹಾಲು ಉತ್ಪಾ ದಕರ ಒಕ್ಕೂ ಟ

Type Cooperative

Industry Dairy

Founded 1974

Headquarters Bangalore, Karnataka

,
India

Key people Balachandra Jarkiholi (President)

Products Milk, curd, ghee, butter, paneer, cheese, milk powder, sweets, chocolates,
ice cream, frozen desserts

Owner Ministry of Cooperation, Government of Karnataka

Parent Government of Karnataka

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 Vision & Mission

 Vision
To march forward with a missionary zeal which will make KMF a
trailblazer of exemplary performance and achievements beckoning other
Milk Federations in the country in pursuit of total emulation of its good
deeds.
To ensure prosperity of the rural Milk producers who are ultimate owners
of the Federation.
To promote producer oriented viable cooperative society to impart an
impetus to the rural income, dairy productivity and rural employment.
To abridge the gap between price of milk procurement and sale price.
To develop business acumen in marketing and trading disciplines so as
to serve consumers with quality milk, give a fillip to the income of milk
producers.
To compete with MNCs and Private Dairies with better quality of milk
and milk products and in the process sustain invincibility of cooperatives.
 Mission
Heralding economic, social and cultural prosperity in the lives of our milk
producer members by promoting vibrant, self-sustaining and holistic
cooperative dairy development in Karnataka State.
 25

 Objectives

KMF is a Cooperative Apex Body in the State of Karnataka representing

organisations of milk producers' and implementing all round dairy
development activities to achieve the following objectives:

 To ensure assured and remunerative market round the year for the
milk produced by the farmer members.
 To make available quality milk and other premier dairy products to
urban consumers.
 To build & develop village level institutions as cooperative model units
to manage the dairy activities.
 To ensure provision of inputs for milk production, processing facilities
and dissemination of know how.
 To facilitate rural development by providing opportunities for self
employment at village level, preventing migration to urban
areas,introducing cash economy and opportunity for a sustained
income.

The philosophy of dairy development is to eliminate middlemen and

organise institutions to be owned and managed by the milk producers
themselves, employing professionals. To sum it up, every activity of KMF
revolves around meeting one basic objective: 'Achieve economies of
scale to ensure maximum returns to the milk producers, at the same
time facilitate wholesome milk at reasonable price to urban consumers'.
Ultimately, the complex network of cooperative organisation should build
a bridge between masses of rural producers and millions of urban
consumers and in the process achieve a socio-economic revolution in
every hinterland of the State.

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  Evolution

Karnataka Milk Federation which is most popular as KMF, evolved itself

as a premier and most profitable dairy farmers' organization in the State
of Karnataka.
As an agency in 1975 to implement the World Bank Aided Dairy
Development Projects,Karnataka Dairy Development Corporation
(KDDC) was formed, the company grew itself fast and as it spreads the
wings of new found rural economic activity - Dairying all over the State,
the genesis of apex cooperative body took the shape of KMF in 1984
encompassing entire State with 13 District Co-operative Milk Unions
executing the various parameters of Dairy activity - organization of Dairy
Co-operatives, Milk Routes, Veterinary Services, Procurement of milk in
two shifts of the day, Chilling, Processing of milk, distribution of milk and
also establishment of Cattle Feed Plants, Nandini Sperm Station, Liquid
Nitrogen Supply, Training Centres - as its main stay.
The entire system was reconstructed on the model of now well known
`ANAND' pattern dairy cooperative societies. Eight southern districts of
Karnataka was considered initially with a target of organizing 1800 Dairy
Co-operative Societies, four Milk Unions and processing facilities were
set up to the tune of 6.5 lakhs per day by 1984.
Under Operation Flood - II &III, project which started in 1984 & 1987
covered the remaining parts of Karnataka. Thirteen milk unions were
organized in 175 talukas of all 20 districts then and the field work was
extended by organizing more dairy cooperative societies. The
processing facilities i.e. chilling centers, milk dairies and powder plants
were transferred in phases to the administrative control of respective
cooperative milk unions and the activities continued to be implemented
by these District Organisations. Additional processing facilities were
created & existing facilities augmented every decade with the help of
Govt. / Zilla Panchayat and NDDB (Under Perspective Plan) to handle
ever increasing milk procurement without declaring milk holidays. The
processing facility as exists at 57.40 lakh liters/day is further
strengthened.
 27

 Organisation Chart

The organization is three tiered on Co-operative

principles.
A. Dairy Co-operative Societies at grass root level.
B. District Co-operative Milk Unions at single / multi
district level.
C.Milk Federation at State level.
All above three are governed by democratically elected
board from among the milk producers. Under the
direction of elected boards, KMF, various functional
Units & Unions are performing the assigned tasks to
ensure fulfilment of organisation objectives.

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 CHAPTER 3:
REVIEW OF LITERATURE AND DESIGN

 STATEMENT OF THE PROBLEM

 Study analyses on the satisfaction and expectation of consumer

with regard to nandini milk and milk products. .
 . Declining nandini sales due to heavy competitors in the market
and lack of loyal retailers
 . Improve customer satisfaction by using alternative channel of
service

 NEED FOR THE STUDY
In this today’s modern market customer satisfaction among customers has its
majority of the roles in the service turnover of the company, every business
invest heavily aspect to build a strong image and gain market share and also to
retain large number of customer, to know customer satisfaction for the
services provided by komul is the need for the study. The main need to study
about the company is to know whether they satisfied the customer needs and
the customer are satisfied with the service or not. It helps to determine the
post-purchase feedback customer to improve the delivery and service of the
product. Help a company to build a long relationship with the customers.

 OBJECTIVE OF THE STUDY

o To recognize the satisfaction level of consumers towards nandini
milk products.

o To know the customer awareness about nandini milk product.

o To identify the demand of the customer towards nandini milk

products.

o To know the customer partialities while obtaining the milk and

milk products.
 29

 SCOPE OF THE STUDY

o . The project is defining consumer’s satisfaction towards nandini
milk and milk products in recent trends.

o . The study will help the organization to

make innovative strategy
to improve their services to meet customer satisfaction.

o The study aid the organization to understand the behavior of

specific customers while purchasing nandini milk.

o Customer satisfaction level can be increased via considering

various aspects

o In this study we can know the market share of different

competitor and accordingly Formulate strategy to improve the
market share.

o . This study helps to enhance the marketing strategy of komul.

 RESEARCH DESIGN

DESCRIPTIVE RESEARCHT

 his study answering several question start with what, who, where, how
and when this research is very tough as well it evaluate eminent degree
of high qualified skills understand and solve the problem. In this study, I
have used descriptive research design to conduct a survey on customer
satisfaction in nandini milk products.

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 PRIMARY DATA
The primary data are collected from nandini milk
customer who has purchased their milk products from
the nandini milk outlets and stores. And it is also
collected with the help of the questionnaires the
respondents are just 100 members, interview by the
personal method to help the more effective study on
the customer satisfaction towards komul. The questions
are in the form of open and close ended.

 SECONDARY DATA
The secondary data will be composed by the help of brochure, journals,
book in the libraries and in the form of a various employee in the
organization. Research was conducted in kolar and some part of
Bangalore where there is effective market for nandini products.

 HYPOTHESIS
 Null Hypothesis (H0): There is no relationship exist between quality of
nandini milk products and satisfaction level of the customer.
 Alternative Hypothesis (H1): There is a relationship exist between
quality of nandini milk products and satisfaction level of the customer.

 LIMITATIONS OF THE STUDY

 The project is limited to a time period of six 6 weeks.
 The project is totally based on customer satisfaction towards
nandini milk products.
 As the study was conducted at kolar findings may not be related
to other areas where nandini milk Products owns its market
existence.
 Data given by respondents may limit to their own knowledge,
feelings and awareness
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 CHAPTER 4:
ANALYSIS AND INTERPRETETION

Nandini Milk is a brand of milk produced by the Karnataka Milk Federation

(KMF), a cooperative dairy organization in the Indian state of Karnataka. Data
analysis and interpretation of Nandini Milk KMF can provide valuable insights
into the production, sales, and consumption patterns of milk in Karnataka.
Production: According to KMF's annual report for the year 2020-21, the
organization procured 82.99 lakh liters of milk per day from its member
farmers, which translates to an annual procurement of 30.28 crore liters of
milk. Nandini Milk KMF has a network of 14 milk unions and 1693 milk
collection centers across Karnataka, which enables it to procure milk from
more than 76 lakh farmer members. The report also states that the KMF has a
processing capacity of 81.33 lakh liters per day, which indicates that it is able
to process almost all of the milk it procures.
sales: Nandini Milk KMF's sales revenue for the year 2020-21 was Rs. 18,028.82
crores, which is an increase of 6.17% over the previous year. The report also
states that Nandini Milk KMF has a market share of 64% in Karnataka's liquid
milk market. This indicates that Nandini Milk KMF is the dominant player in the
liquid milk market in the state.
Consumption: According to a report by the National Dairy Development Board,
the per capita consumption of milk in Karnataka is 290 grams per day, which is
higher than the national average of 232 grams per day. This suggests that milk
is an important part of the diet of people in Karnataka, and Nandini Milk KMF
plays a significant role in meeting the milk consumption needs of the state

 Data analysis and interpretation of Nandini Milk KMF can

be done in several ways, depending on the available data
and the specific questions of interest. Here are some
possible approaches
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 Sales and revenue analysis: One way to analyze Nandini Milk KMF
is to look at the sales and revenue data. This could involve looking
at trends over time, such as monthly or yearly sales figures, and
identifying any patterns or changes in demand. It could also
involve analyzing the revenue generated from different products,
such as milk, curd, or butter, and identifying which products are
most profitable

 Production and distribution analysis: Another way to analyze

Nandini Milk KMF is to look at the production and distribution
data. This could involve analyzing the amount of milk produced by
the cooperative, as well as the number of dairy farmers who
contribute to the production. It could also involve analyzing the
distribution channels for the milk products, such as the number of
retail outlets and the geographic regions where the products are
sold.
 Customer analysis: A third way to analyze Nandini Milk KMF is to
look at the customer data. This could involve analyzing customer
feedback and reviews, as well as conducting surveys or focus
groups to understand customer preferences and needs. It could
also involve analyzing customer demographics, such as age,
gender, and income, to identify target markets for the products.

 Overall, data analysis and interpretation of Nandini Milk KMF can

provide valuable insights into the performance and potential of the
cooperative. By understanding sales and revenue trends,
production and distribution patterns, and customer preferences,
the KMF can make informed decisions about product
development, marketing, and distributin strategies.

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 According to reports, KMF had a market share of
around 60% in the organized dairy sector in
Karnataka in 2021, making it one of the largest
players in the market. Additionally, Nandini has a
presence in several other states in India, including
Tamil Nadu, Andhra Pradesh, and Maharashtra.
According to various news sources, Nandini milk
had a market share of around 32-35% in the state of
Karnataka in 2021, which makes it one of the
leading milk brands in the state. However, it's worth
noting that market share can fluctuate over time
based on various factors such as consumer
preferences, competition, and market trends..
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 . According to the KMF website, the federation processes

around 76 lakh liters of milk per day and has a network of
over 13,000 milk producers. According to reports, Nandini
milk has a significant market share in Karnataka, with KMF
controlling around 70% of the milk market in the state.

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 Operating income of Karnataka Milk Federation from financial year
2020 to 2022(in billion Indian rupees).
The income from operations of Karnataka Milk Federation was over
49 billion Indian rupees in fiscal year 2022. KMF is an Indian dairy
cooperative that manufactures and sells dairy products such as
milk, ghee, curd, butter, and ice cream under the Nandini brand
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Chapter – 5
Findings, Suggestions and Conclusion:

 FINDINGS
 Majority of the respondent are male which accounts up to 62%
and female is 38%.
 52% of the respondent age group is between 21-26, 10%
respondent age varies from 15- 20 and 19% respondent ages in
between 27-32 and rest respondent are above the age of 32.
 Majority of respondent who’s qualification is post graduate and
under graduate which respectively 41% 36% and 10th, 12th,
professional, and others respondents belong to are 2%, 8%, 8%,
6% respectively.
 . Majority of respondent occupation is student which accounts
47.9% of the total respondents and second highest response is
from self-employees that is 19.1 and private –govt employee
accounts about 14.9 and 17% respectively.
 100 of respondent have an idea about the nandini milk products.
 Majority of respondent use nandini milk products and 1% may
belong to own consumption.
 About 73% of the total respondents uses nandini milk products on
daily basis.
 Majority of respondent about 80% are using nandini milk and
other 20% relies on other brands like Amul, Hatsun, Thirumala,
and own consumption.
 This survey clearly shows about 60% of customers are happy with
taste along with super happy customers which contributes around
25%. .
 Majority of the respondent about 57% concludes that nandini milk
products are affordable and 36. % thinks it is economical.

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 SUGGESTIONS

 Products design can be improved which should suit present era which
will result in sale of the products.
 Proper measure need to be taken regarding the packing and distribution
which have an direct impact on customer satisfaction.
 Expansion of market in rural areas with reasonable pricing strategies.
 There must be proper importance need to be given on the taste and
flavors.
 Customer satisfaction can be increased through making products
available in every part.
 Making necessary marketing strategies in order to gain competitive
advantage over its rivalries.
 Pricing strategies need to carry to achieve proper balanced cost as well
as profit.
 In order to attract low income groups there must be reasonable
discounts and other low cost techniques.
 Ensuring basic education to the retailer and wholesalers about the
products and service and ensure customers are treated fairly.
 There must be no compromise related to taste quantity quality of the
milk products.
 Promotion of the nandini milk products in social media must be
undertaken which will have an effective and good impact on majority of
the population and it can be used as platform for promotion of its new
products.
 Promotion of the nandini milk products in social media must be
undertaken which will have an effective and good impact on majority of
the population and it can be used as platform for promotion of its new
products.
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Conclusion:
 On this study ,I tried to find out satisfaction level
of the customer towards nandini2 milk product
offered by komul .This study has given a clear
image that customer feel good about product and
service. We can clearly say products meet them
and company provides good quality of product and
services. In addition it has been observed that
company need to improve its existing levels
performance for better outcome.
 From the following studies, we can conclude that komul
has been serving Clients to create an excellent image
and trust between customers exceptionally well Most of
them are completely satisfied with the company's
products and services.
 The company can adopt customer friendly
methods and train its sales staff to serve customer
in the best way possible. Customer retention
should be Emphasizes and should adopt policies to
maintain reservations. A closer relationship should
be developed with customers to avoid brand
turnover and ensure repeat sales.

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BIBILOGRAPHY :

● https://ide.co
● https://www.mondelezinternational.com
● https://www.englishteastore.com
● https://www.moneycontrol.com
● https://business.mapsofindia.com
● https://www.kmfnandini.coop/