on Mgt Heritage 2010

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INTRODUCTION

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COMPENSATION MANAGEMENT

Compensation Management is an integral part of the management of the organization.

Compensation Management contributes to the overall success of the organization in several

ways. To be effective, the managers must appreciate the value of competitive pay, their humanresources, and have an investment view of payroll costs. We want to maintain pay levels that

attract and retain quality employees while recognizing the need to manage payroll costs.

Pay is a difficult topic of conversation in most organizations. In fact, the topic is altogether taboo

in many workplaces. It simply isn't discussed unless absolutely necessary. And, when it is

necessary, such as when a pay raise (or lack of one) must be explained to an employee, many

managers find themselves at a loss for words. As the dreaded date of such a discussion

approaches, managers may begin checking their sick time banks to see if they can disappear for a

day or two.

While it may be a touchy subject, pay is a critical factor in the work lives of employees. Jobs are

accepted or rejected based in part on starting salary and the opportunity for future increases in

pay. Employees compare their pay to that of others in the same line of work. They constantly

compare their pay level to their level of contribution, trying to determine whether the ratio of

give and receive is a fair one. While it may not be a frequent topic of open discussion, employees

think about pay often.

Approaches of compensation management

There are 3P approach of developing a compensation policy centered on the fundamentals of

paying forPosition, Person and Performance. Drawing from external market information and

internal policies, this program helps establish guidelines for an equitable grading structure,

determine capability requirements and creation of short and long-term incentive plans.

The 3P approach to compensation management supports a company's strategy, mission and

objectives. It is highly proactive and fully integrated into a company's management practices and

business strategy. The 3P system ensures that human resources management plays a central role

in management decision making and the achievement of business goals.

* Paying for position

* Paying for person

* Paying for performance

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Because it is so important to employees, the issue of pay deserves to be clearly addressed. In

spite of their hesitance, managers are capable of dealing with this sometimes difficult issue in a

professional and effective manner. By keeping the following basic points about pay in mind, they

can address virtually any pay-related topic with their employees in a professional and productive

manner.

Specificity is Key

Pay is a topic with many different shades and a variety of implications. Whenever approaching

the subject, it is important to work out the details beforehand so that specifics can be clearly

communicated. For the manager, this means that the increase amount is nailed down before

discussing a promotion with an employee. No chance of misunderstanding or false expectations

can be permitted. Far too often, managers are apt to discuss generalities. "It will mean a good

increase." What exactly does that mean in terms of the employee's monthly budget? If care is not

taken here, good news can become the source of conflict and resentment.

By the same token, if asked for a raise, the manager should request that the employee suggest a

specific number that he believes reflects his value. Once the employee provides that number, the

manager can do his homework and decide what, if anything can be done. The employee can then

be given a definitive response.

Pay is Relative

What one employee considers a fantastic increase maybe an insult to another? Each individual

has a unique set of creativity and competencies. Pay should be based on the performance,

position and the competencies/skills the person is having.

Pay is Not Created Equal

Various forms of pay have different purposes. The two most common forms of direct cash

compensation in most companies are base pay and bonus. Base pay is the annual salary or hourly

wage paid to an employee given the job he holds, While bonus is typically (or at least should be)

rewarded based on the achievement of a goal of the organization.

Discussions about bonus payments should be as specific as possible. This is the opportunity to

point out particular accomplishments that contributed to overall team or company success. Even

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if the bonus is paid to all employees based on a simple overall company profit target, the

manager should use the opportunity to point out specifically how individual employees helped

achieve that target.

Distributing bonus checks presents a unique motivational opportunity for a manager. Handing

money to an employee while discussing actions and behaviors he would like to see repeated,

creates a powerful link between performance and reward.

Discussions about base pay increases can be a bit different. Most companies claim to link their

annual base pay increases to performance. In reality, however, base pay decisions take into

account a variety of factors, including the relative pay of others in the same job, the company's

increase budget, market practices and where the individual falls within his pay range. Even when

performance is a factor, the manager is faced with the difficult task of evaluating an entire year's

worth of activity and then categorizing it according to the percentage increase options allowed by

the budget. It becomes very difficult to pinpoint specific employee actions or accomplishments

as the reason for the increase.

For these reasons, it's appropriate for the discussion about base pay increases to be more general

and balanced. Both strengths and weaknesses of the employee should be addressed. The actual

increase is then based on an overall assessment, as opposed to a link with one or two specific

outcomes. Any other factors that impact the increase percent, such as budget or pay range should

be openly discussed as well.

'Why?' is Critical?

All organizations pay according to some underlying philosophy about jobs and the people who

do them. This philosophy may not be in writing, but it certainly exists. Pay maybe treated in a

formal and structured manner at one company. At another, any appearance of structure is

intentionally avoided so that decisions can be made arbitrarily. Either way, the approach taken

reflects a fundamental belief about people, motivation and management.

Managers often want to view each individual as a separate case. It is important to understand,however, that employees operate within a compensation system. A manager is wise to take the

time to learn as much as possible about his company's compensation system. This knowledge

will form the context for pay discussions and will go a long way toward helping the employee

make sense of what is said.

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While the answer to "how much?" is of course important to employees, they are also concerned

about the "why?" of pay. In other words, while the actual amount of pay is very important,

employees also are interested in the rationale used to determine it. Research has shown that pay

satisfaction increases with understanding of the pay scheme.

Managers often leave this area to the HR department. Ideally, however, managers themselves

will be the primary conduit of information on this topic. If a manager does not know the

company's pay philosophy, he should seek out whomever in the organization is responsible for

pay administration and get the answers he needs.

Is pay based on an analysis of market pay practices? Is it affected by the bonus plan? Are certain

jobs considered critical and, therefore, treated differently? Do pay decisions take training and

education into account? Answers to these questions will help managers help employees

understand the organization's philosophy and the decisions resulting from it.

Job seekers who go into the negotiation process with their eyes wide open keep an important fact

in mind: A few thousand dollars one way or the other can quickly become a gain or a loss

depending on other benefits. Money is important, but it must be put in the context of other pros

and cons--some of which have a dollar value and some of which do not.

The company's health plan, bonus plan, life insurance benefit match are just a few of the rewards

with a dollar value. Beyond these, but just as important, are factors such as career development,

camaraderie among teammates, flexible schedules, etc. Ask employees in a lousy work

environment, and they will testify that these factors should never be understated.

Managers should be the company's biggest ambassadors when it comes to the value of benefits

and work environment factors. Sharp companies do a good job of showing the value of these

items. Smart managers will communicate their value, as well, especially when discussing pay.

For example, when offering a promotion to an employee, a manager should consider all the

potential benefits. What developmental opportunities are involved? Is there an increase in status?

Will the move mean additional interaction with key players? All of these, as well as any increase

in tangible pay and benefits should be discussed.

Speaking of Pay with Confidence

Discussions regarding pay do not have to be awkward--they can be clear and productive if

managers adhere to the basics outlined above. Rather than a taboo, pay can be addressed in an

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up-front manner if managers do their homework, get prepared and go into the discussion with the

confidence that comes from knowledge.

Pay discussions should deal with specifics. In preparing for the discussion, the manager must

remember that pay is relative and nothing can be assumed about the employee's response. The

purpose of the particular aspect of pay being addressed is important, and the manager must be

able to discuss the issue in the context of the organization's pay philosophy. Finally, the many

faces of reward in the workplace cannot be overlooked.

If managers follow these guidelines, their pay-related communication with employees will result

in clarity and respect. In addition, they will avoid the misunderstanding and resentment that

results from avoiding this critical issue.

To conclude we can say that compensation is a hot potato for the Human Resource Department.

The motivation level of the employees to great extent lies in monetary rewards. If paid well can

generate results for the organization, failed can create problems.

The major challenges what managers face today is retention of the man power and the major

cause of it is that they are paid better in the other organizations. A satisfied employee is a

productive employee and care should be taken that they are fairly paid for their worth in the

organization.

NEED FOR THE STUDY:

Compensation management of the employees is important if the employees are

satisfied then only the organization can function smoothly increases its production, faces

competition.

If employees are satisfied with their job they will carry a positive attitude. Hence the

study has been undertaken to assess the employee Compensation which is necessary for the

organization in order to make sound decisions.

Objectives:

1) Understand the concepts of compensation management in Heritage Foods (India) Limited.

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2) Explore the role of compensation management.

3) Pay roll system in Heritage Foods (India) Limited.

Other Objectives:

Maintain pay equity

Simplify the system

Create a new mindset

Give managers more autonomy

Increase transparency

SCOPE OF THE STUDY

The compensation management in Heritage Foods (India) Limited refers to a

persons feeling of satisfaction on their job. It is different from person to person. The researcher

has chosen to measure the level compensation management in Heritage Foods (India) Limited.

The study considers the impact of 10 factors on compensation management in itconcentrates on the effect of factors in general, but no exclusive study is made on them.

The study considers only the perceptual elements of employees and does not

focus on ground realities. The scope of study cover: work conditions, compensation, extra

benefits, conveyance treatment of superiors, colleagues, duly timings, and grievance reprisal

mechanism and promotion policy.

RESEARCH METHODOLOGY

The methodology that is adopted for the study is such that it facilitates the data

accumulation. The information is gathered through survey method. The survey method has been

adopted for collecting the data from employees.

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RESEARCH DESIGN:

Research Design is defined as the specification of methods and procedures for acquiring the

information needed. Generally the research design is any of the following three types-

DESCRIPTIVE, EXPLORATORY and CASUAL.

DESCRIPTIVE STUDY:

Descriptive study/research is marked by the prior formulations of specific research questions.

The investigator already knows a substantial amount about the research problem before the

project is initiated. Hence this is chosen for my research.

EXPLORATORY STUDY:

The major purpose of exploratory study is the identification of problem, the more precision

formulation of problem and the formulation of new alternative courses of action.

CASUAL STUDY:

The study involves the determination of the causes of what the researchers are predicting, this is

mainly a cause and effect study.

The research design selected by the researcher in the present study is

DESCRIPTIVE in nature.

RESEARCH INSTRUMENT:

HR research has a one main research instruments in collecting primary data. That is

questionnaires.

In order to extract first hand information from the respondents, a pre-tested questionnaire

was prepared and the same was administered to the respondents.

DATA SOURCES:

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Data means a collection of facts in real life statistical data is a collection of facts in numerical

figures. The data sources are usually identified using the type of data needed. There are two

types of data.

1. Primary data2. Secondary data

PRIMARY DATA:

The first hand information by the investigator by means of observation face to face

questioning, telephone interview and mailing questionnaire is called primary data.Primary data

consists of original information gathered for a specific purpose.

SOURCES OF PRIMARY DATA:

For the purpose of present study, the primary data collected from respondents by contacting

them personally.

SECONDARY DATA:

Secondary data consists of information that already exists somewhere, having been collected

for another purpose

SOURCES OF SECONDARY DATA:

For the purpose of present study, the secondary data was collected from published data of the

companies. Population is the aggregate of objects animate and in animate, under study in any

statistical investigation. The population for the study here was employees in Heritage Foods

(India) Limited

SAMPLING PROCEDURE

With a view to arrive at the sample population for the study, a Purposive-Cum convenient

sampling was followed.

SAMPLE SIZE

The sample size includes 100 employees who are working in the in Heritage Foods (India)Limited

LIMITATIONS OF THE STUDY:

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HISTORY OF INDIAN FOODS INDUSTRY

Retailing is one of the pillars of the economy in India and accounts for 35% of GDP.

The retail industry is divided into organized and unorganized sectors. Over 12 million outlets

operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organized

retailing refers to trading activities undertaken by licensed retailers, that is, those who are

registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and

retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the

other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana

shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and

pavement vendors, etc.

Most Indian shopping takes place in open markets and millions of independent grocery shops

called kirana. Organized retail such supermarkets accounts for just 4% of the market as of 2008.

Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such

as "signboard licences" and "anti-hoarding measures" may have to be complied before a store

can open doors. There are taxes for moving goods to states, from states, and even within states.

Growth

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Delving further into consumer buying habits, purchase decisions can be separated into two

categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing

machines, dishwashers, microwave ovens and DVD players fall in the status category.

Indulgence-oriented products include plasma TVs, state-of-the-art home theatre systems, iPods,

high-end digital cameras, camcorders, and gaming consoles. Consumers in the status category

buy because they need to maintain a position in their social group. Indulgence-oriented buying

happens with those who want to enjoy life better with products that meet their requirements.

When it comes to the festival shopping season, it is primarily the status-oriented segment that

contributes largely to the retailers cash register.

While India presents a large market opportunity given the number and increasing purchasing

power of consumers, there are significant challenges as well given that over 90% of trade is

conducted through independent local stores. Challenges include: Geographically dispersedpopulation, small ticket sizes, complex distribution network, little use of IT systems, limitations

of mass media and existence of counterfeit goods.

Major Indian Retailers

Indian apparel retailers are increasing their brand presence overseas, particularly in developed

markets. While most have identified a gap in countries in West Asia and Africa, some majors are

also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and

Royal Classic Polo are busy chalking out foreign expansion plans through the distribution routeand standalone stores as well. Another denim wear brand, Spykar, which is now moving towards

becoming a casual wear lifestyle brand, has launched its store in Melbourne recently. It plans to

open three stores in London by 2008-end.

The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans

to focus on lifestyle products. The Mahindra Group is the fourth large Indian business group to

enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti

Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a

range of products, or both.

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe

Deposit Lockers

PGC Retail -T-Mart IndiaSwitcher , Respect India , Grand India Bazaar ,etc.,

REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super

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http://en.wikipedia.org/wiki/LCDhttp://en.wikipedia.org/wiki/Refrigeratorshttp://en.wikipedia.org/wiki/Microwavehttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Mahindra_Grouphttp://en.wikipedia.org/wiki/Reliance_Industries_Ltdhttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Bharti_Enterpriseshttp://en.wikipedia.org/wiki/Bharti_Enterpriseshttp://en.wikipedia.org/wiki/LCDhttp://en.wikipedia.org/wiki/Refrigeratorshttp://en.wikipedia.org/wiki/Microwavehttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Mahindra_Grouphttp://en.wikipedia.org/wiki/Reliance_Industries_Ltdhttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Bharti_Enterpriseshttp://en.wikipedia.org/wiki/Bharti_Enterprises


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RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers Super,

Daily & Fresh

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, FashionStation, Brand Factory, Depot, all, E-Zone etc.

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, Titan

Industries with World of Titans showrooms, Tanishq outlets, Chroma.

K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International

Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiris-Formats: Nilgiris supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.

Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry

Shoprite Holdings-Formats: Shoprite Hyper

Paritala stores bazar: honey shine stores

Aditya Birla Group - more Outlets

Kapas- Cotton garment outlets

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COMPANY PROFILE

Heritage at a Glance:

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The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of

the fastest growing Private Sector Enterprises in India, with three-business divisions viz., Dairy,

Retail and Agri under its flagship Company Heritage Foods (India) Limited (HFIL), one

infrastructure subsidiary - Heritage Infra Developers Limited and other associate Companies

viz., Heritage Finlease Limited, Heritage International Limited and Heritage Agro Merine

Private Limited. The annual turnover of Heritage Foods crossed Rs.347 crores in 2006-07 and is

aiming for Rs.700 crores during 2007-08.

Presently Heritages milk products have market presence in Andhra Pradesh,

Karnataka, Kerala, Tamil Nadu and Maharastra and its retail stores across Bangalore, Chennai

and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are

backbone to retail operations.

In the year 1994, HFIL went to Public Issue to raise resources, which was

oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:

519552) and NSE (Stock Code: HERITGFOOD)

About the founder:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive

and Visionary Leaders of the 21st Century. With an objective of bringing prosperity in to the

rural families through co-operative efforts, he along with his relatives, friends and associates

promoted Heritage Foods in the year 1992 taking opportunity from the Industrial Policy, 1991 of

the Government of India and he has been successful in his endeavour.

At present, Heritage has market presence in all the states of South India. More

than three thousand villages and five lakh farmers are being benefited in these states. On the

other side, Heritage is serving more than 6 lakh customers needs, employing more than 700

employees and generating indirectly employment opportunity to more than 5000 people.

Beginning with a humble annual turnover of just Rs.4.38 crores in 1993-94, the sales turnover

has reached close to Rs.300 crores during the financial year 2005-2006.

Sri Naidu held various coveted and honorable positions including Chief Minister

of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography,

Member of the A.P. Legislative Assembly, Director of A.P. Small Industries Development

Corporation, and Chairman of Karshaka Parishad.

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Sri Naidu has won numerous awards including " Member of the World Economic

Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), " Business

Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year

2000 by the Business Week magazine for being an unflinching proponent of technology and for

his drive to transform the State of Andhra Pradesh.

Forward looking statements:

We have grown, and intended to grow, focusing on harnessing our willingness to

experiment and innovate our ability to transform our drive towards excellence in quality, our

people first attitude and our strategic direction.

Mission:

Bringing prosperity into rural families of India through co-operative efforts and

providing customers with hygienic, affordable and convenient supply of " Fresh and Healthy "

food products.

Vision:

To be a progressive billion dollar organization with a pan India foot print by

2012.To achieve this by delighting customers with "Fresh and Healthy" food products, those are

a benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming

community through our unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career

aspirations and providing innovative avenues for enhanced employee prosperity.

Heritage Slogan:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS"

Quality policy of HFIL:

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We are committed to achieve customer satisfaction through hygienically processed and

packed Milk and Milk Products. We strive to continually improve the quality of our products and

services through upgradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment to

itself, to always produce and provide quality products with continuous efforts to improve the

process and environment.

Adhering to its moral commitment and its continuous drive to achieve excellence in

quality of Milk, Milk products & Systems, Heritage has always been laying emphasis on not

only reviewing & re-defining quality standards, but also in implementing them successfully. All

activities of Processing, Quality control, Purchase, Stores, Marketing and Training have been

documented with detailed quality plans in each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of achieved targets,

but also a scale to identify & reckon, what is yet to be achieved on a continuous basis. Though, it

is a beginning, Heritage has initiated the process of standardizing and adopting similar quality

systems at most of its other plants.

Commitments:

Milk Producers:

Change in life styles of rural families in terms of:

Regular high income through co-operative efforts.

Women participation in income generation.

Saved from price exploitation by un-organized sector.

Remunerative prices for milk.

Increase of milk productivity through input and extension activities

Shift from risky agriculture to dairy farming

Heritage

Financial support for purchase of cattle; insuring cattle

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Establishment of Cattle Health Care Centers

Supplying high quality Cattle feed

Organizing "Rythu Sadasu" and Video programmes for educating the farmers in dairy

farming

Customers:

Timely Supply of Quality & Healthy Products

Supply high quality milk and milk products at affordable prices

Focused on Nutritional Foods

More than 4 lakh happy customers

High customer satisfaction

24 hours help lines (


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Society:

Potential Employment Generation

More than 3500 employees are working with heritage

More than 9500 procurement agents got self employment in rural areas

More than 5000 sales agents associated with the company

Employment for the youth by providing financial and animal husbandry support for

establishing MINI DAIRIES

Producing highly health conscious products for the society

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations of

customers.

2. People involvement to promote team work and tap the potential of people.

3. Leadership to set constancy of purpose and promote quality culture trough out the

organization.

4. Process approach to assess the efficiency and effectiveness of each process.

5. Systems approach to understand the sequence and interaction of process.

6. Factual approach to decision making to ensure its accuracy.

7. Continual improvement processes for improved business results.

8. Development of suppliers to get right product and services in right time at right place.

Product/Market wise performance:

The total turnover is Rs 341 Crores during the financial year 2006-07 against the

turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk productsin the states of A.P, Karnataka, Kerala & Tamil nadu.

During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against

Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of cream,

ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.

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Milk sales:

23% growth was recorded in AP 2.38 lakhs litres per day (LLPD) in 2006-07 against 1.93

LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2006-07 against 1.35

LLPD in 2005-06. Overall growth of 6% was recorded- 5.49 LLPD in 2006-07 against 5.16

LLPD. Flavoured milk sales recorded a growth rate of 77% over 2005-06. Butter milk sales have

gone up by 45% over 2005-06.

Outlook:

Considering the growth potential in the liquid milk market, the company has drawn plans

to increase its market share in the existing markets and to enter into new markets there bydoubling revenues in dairy business in the next 3 years. To achieve this object, company is

undertaking major expansion in dairy business by inverting over Rs20 crores during 2006-07 and

over Rs10 crores during the current year to strengthen the milk procurement.

BRANCHES OF HFIL:

HFIL has 3 wings. They are

1. Dairy

2. Retail

3. Agribusiness

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

2. Retail:

In the retail sector HFIL has outlets namely Fresh@. In those stores the products

sold are vegetables, milk& milk products, grocery, pulses, fruits etc.

In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4 respectively

are there. Totally there are 26 retail shops are there.

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Fresh@ is a unique chain of retail stores, designed to meet the needs of the modern

Indian consumer. The store rediscovers the taste of nature every day making grocery shopping a

never before experience.

The unique and distinctive feature of Fresh@ is that it offers the widest range of

fresh fruits and vegetables which are directly handpicked from the farms. Freshness lies in their

merchandise and the customers are always welcomed with fresh fruits and vegetables no matter

what time they walk in.

3. Agri Business:

In this business HFIL employees will go to farmers and have a deal with them.

Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL will transport

the goods to retail outlets.

The agricultural professors will examine which area is suitable to import

vegetables from and also examine the vegetables, pulses and fruits in the lab. And finally they

report to the Head-Agribusiness. Representatives as per the instructions given by the agri

professors will approach the farmers directly and make a deal with them. It is the process of

registering the farmers.

Heritage Finlease Heritage Finlease Limited was incorporated under the companies Act 1956

on 23rd of February 1996 and commenced business from 2nd day of April 1996. The registered

office is located at 6-3-541/c Punjagutta, Hyderabad-500082.

The following are the directors of the company:

Sri D.Seetharamaiah

Smt. N. Bhuvaneswari

Sri M. Sivarama VaraprasadSri R.S.Bakkannavar

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The Company was registered as Non Banking Financial Institution on 5th Day of December

1998 by Reserve Bank of India as a Deposit Taking Company under the category Hire Purchase

Company.

At Present the company is allowing Dairy Loans to Small Farmers under Tie up arrangement

with Heritage Foods (India) Limited. The Company has been earning profits from inception and

functioning in conformity with the rules and directions of Reserve Bank of India.

The Company holds a Corporate Agency for General Insurance through United India Insurance

Company Ltd since 2003. It secured sizeable business under this Insurance Agency Services.

The following is the Financial Position of the Company as on 31-03-2007:

Authorise Capital 2,00,00,000

Paid up Capital 1,11,07,000

Reserves 6,43,042

Profit After Tax 4,60,867

Hire Purchase Debtors (Net) 14,12,641

Dairy Loans 61,23,172

Dividend 3%

PREFACE

This Code of Conduct and Ethics (herein after referred to as the "Code") has been adopted by the

Board of Directors of Heritage Foods (India) Limited (herein after referred to as

"the Company"), to be applicable to all Directors and all members of senior management i.e.,

personnel who are a part of the core management team and including all functional heads of the

company (herein after referred to as the 'Members') with effect from December 23, 2005.

This Code helps the Members maintain good standards of business conduct, foster ethical and

moral conduct and promote a culture of honesty and accountability, so as to set an example to

others in the company.

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The Code is not an all-inclusive comprehensive policy and cannot anticipate every situation that

may arise in the course of the company's business. The Members are expected to bear in mind

the essence and substance of the Code in all their dealings / transactions with the Company.

DEFINITIONS

Directors: mean all members on the Board of Directors or Committees thereof.

Senior Management: means all employees in the grade of Assistant General Manager and

above. STRICT COMPLIANCE

All Members shall act within the bounds of the authority conferred upon

them and undertake the duty to make and enact informed, judicious and harmonious decisionsand policies in the best interests of the Company and its shareholders / stakeholders.

With a view to maintain the high standards the Company requires, the

following rules/ code of conduct to be observed in all activities. For the purpose of the code, the

Company appoints the Company Secretary as compliance officer, who will be available to

Members to answer questions and help them in complying with the code.

CONFLICT OF INTEREST

The term "Conflict of interest" pertains to situations in which financial or

personal considerations may compromise, or have the appearance of compromising judgment of

professional activities. A conflict of interests exists where the interests or benefits of one person

or entity conflicts with the interests or benefits of the other person/entity/company.

All Members should not engage in any business, relationship or activity,

which may be in conflict with the interest of the Company. Conflict may arise in many

situations. It is not possible to cover every possible conflict situation and at times, it will not be

easy to distinguish between the proper and improper activities. Set forth below, are some of the

common circumstances that may lead to conflict of interest, actual or potential.

i. Members should not engage in any activity / employment that interfere with your

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performance or responsibility to the Company or otherwise in conflict with or prejudicial to

the interests of the Company.ii. As a general policy, Members should avoid conducting business with a relative or with a

firm / Company in which a relative / related party is associated in a significant role / position.iii. Whenever/ wherever the related party transaction is unavoidable Members will fully disclose

their interest in the transaction to the Board or to the CEO of the Company and due records

for such transactions will be maintained as per the statutory requirements.

HONESTY AND INTEGRITY

All Members shall conduct their activities, on behalf of the Company and on their personal

behalf, with honesty, integrity and fairness. They will act in good faith, with responsibility, due

care, competence and diligence, allowing independent judgment to their subordinates. Members

shall act in the best interests of the Company and fulfil their fiduciary obligations.

POLICY OF BUSINESS RELATIONSHIP

The Company will conduct business legally and ethically. The quality of company's products and

the efficiency of its services at the most competitive price is the greatest tool in conducting the

business of the company. Profits do not justify unfair/ unethical practices. All Members should

uphold the highest standards of integrity in all the business relationships.

INTELLECTUAL PROPERTY POLICY

All Members have utmost obligation to identify and protect the intellectual properties, trade

secrets and confidential information owned by the Company and its clients or associates as it is

critical to the success of the company. "Intellectual Property Rights" (IPR) means generally

patented or potentially patentable inventions, trademarks, copyrightable subject matters and trade

secrets.

CORPORTE OPPORTUNITIES

Members owe a duty to the Company to advance its legitimate interests when the

opportunity to do so arises and are expressly prohibited from improper use of information /

property or taking improper advantage of their position.

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PREVENTION OF INSIDER TRADING

Insider trading is prohibited both by the Law as well as by the company policy.

Insider trading generally involves the act of subscribing to or buying or selling of the Company's

securities, when in possession of any Unpublished Price Sensitive Information about the

company. "Price sensitive information is such information, which relates directly or indirectly

to the company and which if published is likely to materially affect the price of securities of the

Company. It is important to note that both positive and negative information could be price

sensitive. Members shall not derive benefit or assist others to derive benefit or assist them to

derive benefit on their behalf by giving investment advice from the available access to and

possession of information about the Company, which is not in public domain and thus

constituting insider information. Members shall comply with the prevention of insider trading

guidelines as issued by Securities Exchange Board of India (SEBI).

SECURITIES MARKET POLICY

The Company is committed to comply with securities laws in all the markets in

which the Company's securities are listed. The company prohibits fraudulent and unfair trade

practices with regard to the securities of the Company by all Members.

CONFIDENTIALITY OF INFORMATION POLICY

The Company's confidential information is a valuable asset. Members shall understand that

protection of all confidential information is essential. Members should undertake and be

committed to protecting business and personal information of confidential nature obtained from

clients, associates and employees......................................................................................................

Any information concerning the Company's business, its customers, suppliers etc which is not in

the public domain and to which the Members have access or possesses such information, shall beconsidered confidential and held in confidence, unless authorized to disclose or such disclosure

is required as a matter of law. Members shall not provide any information either formally or

informally, to the press or any other publicity media, unless specially authorized to do so.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

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Members should comply with all applicable laws, rules, and regulations, both in letter and sprit.

In order to assist the Company in promoting the lawful and ethical behaviour, Members have to

report any possible violation of law, rules, regulations or the code of conduct to the Company

Secretary.

PROTECTION AND PROPER USE OF COMPANYS ASSETS

All Members have the responsibility to protect the assets of the company, ensure optimal

utilization of assets and to report and record all transactions. Members shall protect the

Company's assets from loss, damages, misuse or theft and assets may only be used for business

purposes and other purposes specifically approved by management and must never be used for

any personal or illegal purposes.

COMPETITION POLICY

The Company shall compete only in an ethical and legitimate manner. It prohibits all actions that

are anti- competitive or otherwise contrary to laws that govern competitive practices in the

market place. Members shall uphold the same.

SELECTING SUPPLIERS

The Company's suppliers make significant contribution to its success. The Company's policy is

to purchase / avail supplies based on need, quality, service, price and other commercial terms and

conditions. Suppliers should be selected based on merit, price, quality and performances.

The Company's policy is to select significant suppliers through a competitive bid process

wherever possible. Under no circumstance should the Company or its employee, agent or

contractor attempt to coerce suppliers in any way.

ENVIRONMENT, HEALTH AND SAFETY POLICY

Members shall take environmental consciousness a step further as a company and contribute to

preserving nature as well as safety measures in own respective work areas. All Members are

responsible for conducting safe and environmentally sound operations; this is in the interest of

our own well-being and the quality of life of others. Members shall abide by this policy.

ELIMINATION OF CHILD LABOUR

It is the Company's policy not to support child labour. The Company is committed to implement

the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. To, promote this the

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Company encourages its suppliers also to work towards a no child labour policy in their

industries. Members shall strictly observe that no child labour is employed in the company.

ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is committed toensuring that employees enter into employment and stay on in the Company of their own free

will. Members shall uphold this policy.

GIFTS & DONATIONS

No Member shall receive or offer, directly or indirectly, any gifts, donations, remuneration,

hospitality, illegal payments and comparable benefits which are intended or perceived to be

intended to obtain business (or uncompetitive) favours or decision for the conduct of the

business. Normal gifts of commemorative nature for special events may be accepted and reported

to the Board.

OTHER DIRECTORSHIPS

The Company feels that serving on the Board of directors of other companies may raise

substantial concerns about potential conflict of interest. Therefore all Directors shall report /

disclose such relationships to the Board on an annual basis. It is felt that service on the Board ofa direct competitor is not in the interest of the Company. Hence all the Directors are barred in

accepting such position without the concurrence of the Board.

ACCOUNTABILITY

The Board of Directors (BOD) shall oversee the Company's adherence to ethical and legal

standards. All employees and members of the BOD shall undertake to stop or prevent actions

that could harm customers or reputation of the Company and to report such actions as soon as

they occur to take corrective steps and see that such actions are not repeated.

COMPLIANCE WITH CODE OF CONDUCT

Each Director and senior management personnel shall adhere to this code of conduct and affirm

compliance with the code on an annual basis as per the Annexure to the Code. Violation of this

Code will lead to appropriate disciplinary action.

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WAIVER OF THE CODE

Any waiver of the applicability of the Code or waiver of application of any provision of the Code

to any Member shall be approved by the Board of Directors and disclosed as required by Law or

SEBI / Stock Exchange regulations.

LITERATURE REVIEW

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Human Resource is the most vital resource for any organization. It is responsible for each and

every decision taken, each and every work done and each and every result. Employees should be

managed properly and motivated by providing best remuneration and compensation as per the

industry standards. The lucrative compensation will also serve the need for attracting and

retaining the best employees.

Compensation is the remuneration received by an employee in return for his/her contribution to

the organization. It is an organized practice that involves balancing the work-employee relation

by providing monetary and non-monetary benefits to employees.

Compensation is an integral part of human resource management which helps in motivating the

employees and improving organizational effectiveness.

COMPONENTS OF COMPENSATION SYSTEM

Compensation systems are designed keeping in minds the strategic goals and business objectives.

Compensation system is designed on the basis of certain factors after analyzing the job work and

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responsibilities. Components of a compensation system are as follows:

TYPES OF COMPENSATION

Compensation provided to employees can direct in the form of monetary benefits and/or indirect

in the form of non-monetary benefits known as perks, time off, etc. Compensation does not

include only salary but it is the sum total of all rewards and allowances provided to the

employees in return for their services. If the compensation offered is effectively managed, it

contributes to high organizational productivity.

DIRECT COMPENSATION

Direct compensation refers to monetary benefits offered and provided to employees in return of

the services they provide to the organization. The monetary benefits include basic salary, house

rent allowance, conveyance, leave travel allowance, medical reimbursements, specialallowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a certain

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period say a day, a week, a month, etc. It is the money an employee receives from his/her

employer by rendering his/her services.

House Rent Allowance

Organizations either provide accommodations to its employees who are from different state or

country or they provide house rent allowances to its employees. This is done to provide them

social security and motivate them to work.

Conveyance

Organizations provide for cab facilities to their employees. Few organizations also provide

vehicles and petrol allowances to their employees to motivate them.

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Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The employees are

given allowances to visit any place they wish with their families. The allowances are scaled as

per the position of employee in the organization.

Medical Reimbursement

Organizations also look after the health conditions of their employees. The employees are

provided with medi-claims for them and their family members. These medi-claims include

health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide them the

social security. The bonus amount usually amounts to one months salary of the employee.

Special Allowance

Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses,

reduced interest loans; insurance, club memberships, etc are provided to employees to provide

them social security and motivate them which improve the organizational productivity.

Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu

of the services provided by them to the organization. They include Leave Policy, Overtime

Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement

Benefits, Holiday Homes.

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Leave Policy

It is the right of employee to get adequate number of leave while working with the organization.

The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and

maternity leaves, statutory pay, etc.

Overtime Policy

Employees should be provided with the adequate allowances and facilities during their overtime,

if they happened to do so, such as transport facilities, overtime pay, etc.

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an interval

of one year. Even their dependents should be eligible for the medi-claims that provide them

emotional and social security.

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Insurance

Organizations also provide for accidental insurance and life insurance for employees. This gives

them the emotional security and they feel themselves valued in the organization.

Leave Travel

The employees are provided with leaves and travel allowances to go for holiday with their

families. Some organizations arrange for a tour for the employees of the organization. This is

usually done to make the employees stress free.

Retirement Benefits

Organizations provide for pension plans and other benefits for their employees which benefits

them after they retire from the organization at the prescribed age.

Holiday Homes

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Organizations provide for holiday homes and guest house for their employees at different

locations. These holiday homes are usually located in hill station and other most wanted holiday

spots. The organizations make sure that the employees do not face any kind of difficulties during

their stay in the guest house.

Flexible Timings

Organizations provide for flexible timings to the employees who cannot come to work during

normal shifts due to their personal problems and valid reasons.

Need of Compensation Management

A good compensation package is important to motivate the employees to increase the

organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus,

compensation helps in running an organization effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees have other psychological

and self-actualization needs to fulfill. Thus, compensation serves the purpose.

The most competitive compensation will help the organization to attract and sustain the

best talent. The compensation package should be as per industry standards.

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Strategic Compensation

Strategic compensation is determining and providing the compensation packages to the

employees that are aligned with the business goals and objectives. In todays competitive

scenario organizations have to take special measures regarding compensation of the employees

so that the organizations retain the valuable employees. The compensation systems have changed

from traditional ones to strategic compensation systems.

Payroll is defined as a method of administrating employees salaries in the organizations. The

process consists of calculation of salaries and tax deductions of the employees, administrating

the retirement benefits and disbursements of salaries to employees. It can also be called as an

accounts activity which undertakes the salary administration of employees in the organization.

Administrating the employees salaries is not an easy task, the HR and accounts departmentwork together to calculate and disburse the salary to the employees. Thus, payroll management

can be further subdivided into two sub processes, i.e. Payroll accounting and payroll

administration.

Payroll Accounting

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Payroll accounting involves calculations of employees salaries and tax deductions. It also

undertakes the activities such as preparation of tax returns, maintaining the payroll records, etc.

Payroll Administration

Payroll Administration involves managerial activities such as maintaining employees records,

referring employment laws. Here, the HR comes into picture which maintains the daily record if

employees attendance.

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Figure: Payroll Process

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Database of employees is maintained. Employees details such as name, employee ID, basic

salary, daily attendance, etc are recorded. Gross Salary is calculated after adding the allowances

and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax

and other calculated deductions (loan installments, etc).

Evolution of Compensation

Todays compensation systems have come from a long way. With the changing organizational

structures workers need and compensation systems have also been changing. From the

bureaucratic organizations to the participative organizations, employees have started asking for

their rights and appropriate compensations. The higher education standards and higher skills

required for the jobs have made the organizations provide competitive compensations to their

employees.

Compensation strategy is derived from the business strategy. The business goals and objectives

are aligned with the HR strategies. Then the compensation committee or the concerned authority

formulates the compensation strategy. It depends on both internal and external factors as well as

the life cycle of an organization.

Evolution of Strategic Compensation

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Traditional Compensation Systems

In the traditional organizational structures, employees were expected to work hard and obey the

bosses orders. In return they were provided with job security, salary increments and promotions

annually. The salary was determined on the basis of the job work and the years of experience the

employee is holding. Some of the organizations provided for retirement benefits such as, pension

plans, for the employees. It was assumed that humans work for money, there was no space for

other psychological and social needs of workers.

Change in Compensation Systems

With the behavioral science theories and evolution of labour and trade unions, employees started

asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He

stated that employees do not work only for money but there are other needs too which they want

to satisfy from their job, i.e. social needs, psychological needs, safety needs, self-actualization,

etc. Now the employees were being treated as human resource.

Their performance was being measured and appraised based on the organizational and individual

performance. Competition among employees existed. Employees were expected to work hard to

have the job security. The compensation system was designed on the basis of job work and

related proficiency of the employee.

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Maslows Need Hierarchy

Todays Modern Compensation Systems

Today the compensation systems are designed aligned to the business goals and strategies. The

employees are expected to work and take their own decisions. Authority is being delegated.

Employees feel secured and valued in the organization. Organizations offer monetary and non-

monetary benefits to attract and retain the best talents in the competitive environment. Some of

the benefits are special allowances like mobile, companys vehicle; House rent allowances;

statutory leaves, etc.

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Compensation and Reward system plays vital role in a business organization. Since, among four

Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is

impossible to imagine a business process without Men. Every factor contributes to the process of

production/business. It expects return from the business process such as rent is the return

expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects

profits. Similarly the labour expects wages from the process.

Labour plays vital role in bringing about the process of production/business in motion. The other

factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects

to have fair share in the business/production process. Therefore a fair compensation system is a

must for every business organization. The fair compensation system will help in the following:

An ideal compensation system will have positive impact on the efficiency and results

produced by employees. It will encourage the employees to perform better and achieve

the standards fixed.

It will enhance the process of job evaluation. It will also help in setting up an ideal job

evaluation and the set standards would be more realistic and achievable.

Such a system should be well defined and uniform. It will be apply to all the levels of the

organization as a general system.

The system should be simple and flexible so that every employee would be able to

compute his own compensation receivable.

It should be easy to implement, should not result in exploitation of workers.

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It will raise the morale, efficiency and cooperation among the workers. It, being just and

fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor acts.

Such system should also solve disputes between the employee union and management.

The system should follow the management principle of equal pay.

It should motivate and encouragement those who perform better and should provide

opportunities for those who wish to excel.

Sound Compensation/Reward System brings peace in the relationship of employer and

employees.

It aims at creating a healthy competition among them and encourages employees to work

hard and efficiently.

The system provides growth and advancement opportunities to the deserving employees.

The perfect compensation system provides platform for happy and satisfied workforce.

This minimizes the labour turnover. The organization enjoys the stability.

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The organization is able to retain the best talent by providing them adequate

compensation thereby stopping them from switching over to another job.

The business organization can think of expansion and growth if it has the support of

skillful, talented and happy workforce.

The sound compensation system is hallmark of organizations success and prosperity.

The success and stability of organization is measured with pay-package it provides to its

employees.

Payroll.

Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and

deductions. It consist of the employee ID, employee name, date of joining, daily attendance

record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays,

vacations and sickness, value of meals and lodging etc. There are some deductions such as PF,

taxes, loan installments or advances taken by employee.

Payroll is administered on monthly basis and annual basis.

While administrating the monthly payroll basic salary, HRA, conveyance, and other special

allowances such mobile, etc are considered. There are some deductions which are provident fund

(12%) of the salary, taxes and other deductions.

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Figure: Components of Monthly Payroll

Deductions such as tax and loan/advances taken by the employee from organizations are

deducted only where applicable. Dearness Allowance and House rent allowance is provided at afixed rate stated by the employment law. Provident fund is deducted from the gross salary of

employee on the monthly basis as per the employment law, which is provided later to the

employee. Organizations also contribute the same amount to the provident fund of the employee.

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Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal

vouchers/reimbursements, and medical reimbursements.

Figure: Components of Annual Payroll

Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some

organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some

organizations go for performance based incentives.

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DATA ANALYSIS

&

INTERPRETATION

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1. Pay and compensation package is adequate and fair in comparison to performance.

OPTIONS NO OF RESPONSES

Strongly agree 18

Agree 52

Neutral 18

Strongly disagree 12

Interpretation:

The survey revealed that most of the employees agree for the reason of their pay and

compensation package is adequate and fair in comparison to performance and some are disagree.

2. Medical facilities provided by the organization suites your health needs?


Strongly agree 38

Agree 46

disagree 14

Strongly disagree 0

Interpretation:

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The survey revealed that most of the employees agree and strongly agree for the reason

of the medical facilities provided by the organization which suits their health needs, and few are

disagree.

3. Recognition & rewards are given based on employee performance.


Strongly agree 18

Agree 48

Neutral 16

Disagree 18

Interpretation:

The survey revealed that most of the employees agree and strongly agree for recognition

and rewards are given based on employee performance but some are disagree.

4. Do you think the reward system is fair and adequate?

(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 36 72

2 NO 14 28

TOTAL 50 100

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72

28

0

10

20

30

40

50

60

70

80

1 2

yes no

% of respondents

Percentage

Interpretation:

About 72% said that the reward system is fair and adequate and 28% responded

that it is not fair.

5. Do you think that a good workman gets motivated with frequent Compensative pay? Is

conducted?

(a) YES (b) NO

s.noOptions

No. ofResponses Percentage

1 YES 44 88

2 NO 6 12

TOTAL 50 100

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% of respondents88% YES12% NO

Interpretation:

A majority of 88% of the employees said that a good workman gets motivated with

frequent Compensative pay and 12% of the employees are not satisfied with above.

1. Satisfaction level in Heritage Foods (India) Limited Comparison with other Companies

Opinion of the employees HERITAGE MORE BIG BAZAAR CENTRAL

Opinion % 50% 75% 40% 30%

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Interpretation:

The survey reveals that the employees satisfaction level in Heritage Foods

(India) Limited is above average when compared to others. Compared to Central, employees of

Heritage Foods (India) Limited was less satisfying with their Rewards & Recognitions.

7. Employee Preference on Rewards and Recognition in Comparison with other Companies:

Opinion of employee of

difference companies

Reward Recognition Both

HERITAGE 5 20 75

MORE 10 0 90

BIG BAZAAR 0 40 60

CENTRAL 25 25 50

Interpretation:

From the analysis we came to know that the many respondents of different industries

prefer both the Rewards and Recognition. Some employees prefer the recognition and the very

few are prefer the only rewards.

8. Do you think Compensation management is needed in a company?

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(a ) YES (b) NO

s.no

Option

s No. of Responses Percentage

1 YES 100 100

2 NO 0 0

TOTAL 100 100

% of respondents

100

00

20

40

60

80

100

120

1 2

yes

Percentage

no

Interpretation:

To above question, almost 100% of the employees thought that Compensation

management is needed in a company.

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9. Do you think that incentives are needed for Compensation management

programmers?

(a) YES (b) NO

S.N

O OPTIONS

NO OF

RESPONDENTS

% OF

RESPONDENTS

1 YES 100 100

2 NO 0 0

TOTAL 100 100

% OF RESPONDENTS

100

00

20

40

60

80

100

120

1 2

Yes No

Interpretation:

From the above analysis we can say that 100% of the employees feel

Those incentives are needed for attending Compensation management. 0% of the employees

feel those incentives are not needed for training programmers.

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10. Job provides scope to achieve goals?

Response Respondents % of Respondents

Strongly Agree 20 26.67

Agree 24 32

Neutral 10 13.33

Disagree 12 16

Strongly 9 12

Interpretation:-

From the above table, it is clear that, 32 % of employees agree that there is

scope for achieving goals and 26% of them are strongly is agreed.

11. Freedom to take decision?

Response

Respondent

s

% of

Respondents

Strongly

Agree 5 6.67

Agree 10 13.33

Neutral 15 20

Disagree 20 26.67

Strongly 25 33.33

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Interpretation:-

From the above table, 13 % of employees agreed that they have the

Freedom to take decision with the decision taking and 33% of employee doesnt have

freedom to take decision.

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12. Better position in near future?



Agree 32 42.33

Neutral 10 13.33

Disagree 7 9.33

Strongly 5 6.67

Interpretation:

From the above table, 42 % of employees agree that they can see themselves

in a better position in near future and 26% strongly agree that they can place themselves in a

better position very few disagrees for the above.

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13. Working under in human working conditions:



Agree 30 40

Neutral 11 14.67

Disagree 4 5.33

Strongly 5 6.67

Interpretation:

From above table 40% of employees agree with the working conditions are

human and 33% of employees strongly agree.

1

Respondants

25

30

11

4 5

Strongly Agree

Agree

Neutral

Disagree

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14. Benefits provided by the company?

ResponseRespondents % of Respondents

Excellent 12 16

Good 21 18

Average 18 24

Bad 9 12

Very Bad 15 20

Interpretation:-

From the above table, 16% of the employees said Excellent benefits provided

by the company, 18% of employees Good, 24% of employees have good, 24% off employees

have average 12% of employees have bad, 20% of employees have very sad opinion.

15. How do you feel about work load?

Response

Respondent

s % of Respondents

Relaxed 13 17.33

Normal 45 60

Burden 7 9.33

Over Burden 3 4

Satisfy 8 10.67

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Respondents

13

45

73 8

Relaxed

Normal

Burden

Over Burden

Satisfy

Interpretation:

From the above table, 17.33% of the employees have told Relaxed work load,

60% of employees have normal, 9.33% of employees have Burden, 10.67% off employees

have satisfy the work load in the company.

16. How do you feel about responsibility?


Highly Response 36 48

Response 28 37.33

Not Response 3 4

No Opinion 8 10.67

Interpretation:

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From the above table, 48% of the employees feel highly responsible, 37.33%

of employees Responsible, 4% of employees doesnt feel Responsibility, 10.67% of

employees no opinion on the responsibilities.

17. Satisfied with the company rules?


Highly Satisfied 47 62.67

Satisfied 18 24

Dissatisfied 6 8

Highly Dissatisfied 4 5.33

Interpretation:-

From the above table 20% of employees have highly satisfy the personal

development, 32% of employees satisfy, 40% of employees dissatisfy, 8% of employees highly

Dissatisfy with the personal development.

FINDINGS OF THE STUDY

Employees in Heritage Foods (India) Limited are well satisfied with Management

towards the proper decision in generating their own ideas working environmental

conditions.

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A study portrays that 75% of respondents show improvement in the quality of

workmanship, in participating the organization.

The Compensation management in management provides better understanding to the

employees about their roles in achieving the goals of the company.

The Compensation management in management acts as a complimentary body to help

collective bargaining that creates healthy work atmosphere and legal relations in Heritage

Foods (India) Limited

Every member in the organization are very much well satisfied with the job, in

developing their working conditions, and following their rules and regulations at regular

intervals of time, conducted by the management.

A study portrays, 60% of employees rate excellent in maintaining good relations in the

organization between workers and management and 25% are well satisfied with the

relations maintain by the management towards the workers.

SUGGESTIONS

There should be coordination and cooperation between executives and non-executives.

The employees have a high degree of understanding of the concept of workers

participation in management

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Suggestive and collective bargaining should be more effective that they can play much

greater role in eliminating the communication gap between management and workers.

The committees should pay more attention on areas where is scope for improvements,

so as to improve the overall performance of the company.

The employees want the company to give rewards in accomplishing the tasks.

Improve the promotion and recognition system.

Every year a survey should be conducted by management regarding the grievances and

settlement should be done so that every employee will work with dedication.

See that the quality of food is maintained in the canteen.

The suggestions of the workers must be given importance in the decision making.

The various other facilities and schemes provided by the company such as sports,

recreation, compensation and benefit packages, incentives etc are satisfactory.

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BIBLIOGRAPHY

BOOKS

Aswathappa.k, Human resource and personnel management, 3/e, TMH, 2003.

Mamoria.C.B and Gankar.S.V. Personnel management, text and cases, Himalaya Publications,

2003.

Gary Dessler, Human Resource Management, 9/e, Prentice Hall India, 2003.

G.C. Berry, Business Statistics, 2/e, TMH, 2003.

S.P. Gupta, Statistical Methods, 34/e, Sultan Chand & Sons.

JOURNALS

Personnel Management, June, July, August, editions.

Human Capital, June, July, August, editions.

Indian Management, April, June, November, editions (2006&2007).

INTERNET

http://www.heritage.com

http://www.google.com

http://www.wikipedia.com

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ANNEXURE

QUESTIONNAIRE ON


Name :

Designation: Age:

Pay and compensation package is adequate and fair in comparison to performance

Medical facilities provided by the organization suites your health needs

Recognition & rewards are given based on employee performance

Do you think the reward system is fair and adequate

. Do you think that a good workman gets motivated with frequent Compensative pay? Is

conducted?

Satisfaction level in Heritage Foods (India) Limited Comparison with other Companies

Employee Preference on Rewards and Recognition in Comparison with other Companies

Do you think Compensation management is needed in a company?

Do you think that incentives are needed for Compensation management programmers?

Job provides scope to achieve goals?

Freedom to take decision

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Better position in near future

Working under in human working conditions

Benefits provided by the company

How do you feel about work load

How do you feel about responsibility

Satisfied with the company rules?

Any Suggestions

Documents

on Mgt Heritage 2010