Embed Size (px)
DESCRIPTION
new
Citation preview
ON
"WAGE & SALARY ADMINISTRATION"AT
JAYPEE SIDHI CEMENT PLANT BAGHWAR
Submitted for the partial fulfillment of the Degree of
M.B.A from A.P.S. University Rewa (M.P.)
SESSION - 2013
DEPARTMENT OF BUSINESS ADMINISTRATION, A.P.S. UNIVERSITY
REWA (M.P.)
Submitted To :Dr. Atul PandeyProf.-in-charge
Submitted By :Rupesh Agrawal
MBA III Sem.DBA, A.P.S. University Rewa (M.P.)
Under the Guidance OfMr. Mrityunjay
SinghAssistant Manager (HR)
INTRODUCTIONDetermining wage and salary payments is one of the most critical aspects of
human resource management because
1. The organization compensation and reward system has such a profound effect on the recruitment satisfaction & motivation of employees.
2. The wages and salary represent a considerable cost to the employer.
The wage/salary programme is designed with the following goals of mind-
To meet the needs of employees, including desires for security and self esteem.
To motivates workers to achieve the desired levels of performance.
To be cost effective or based on what an organization can afford to pay.
To be competitive with other organization in order to attract and retain human resource.
To comply with the wage and salary provision in he labour market and with state lows and regulation.
To be fair & consistently applied throughout the organization.
WAGES ~ wages are defined as the aggregate earning of an employee for A given period of time such as a day or a week or a month. Wages are Basically the price paid for the services of labor in the process of promotion. They are composed of two parts VIZ; the basic wage and other allowances The allowances Include DA Overtime pays medical allowances etc.SALARY~ it is compensation to an employee for personnel services rendered on a weekly, monthly or annual basis. It is usually associated with office staff, supervisor, whose performance can’t be measured directly.
PURPOSE ~the basis purpose of wage and salary administration is to establish &
maintenance of an equitable wage & salary structure. Its secondary objective is the
Establishment and maintenance of an equitable labors cost structure. The wage and
Salary administration is concerned with the financial aspects of needs motivation and
rewards. Manager therefore analysis and interpret the needs of their analysis and
interpret the needs of their employees so that reward can be designed to satisfy these
Needs.
Wage determination process ~
The wages determination process involves in determining wage rates wages rates
are performing job analysis wages survey analysis of relevant organizational
problems forming wages structure framing rules of wages administration
explaining these to employees assigning grades and price to each job and paying
the guaranteed wages.
JOB ANALYSIS
Job description & job evaluation wages survey & wage
Specification analysis of legislation
Relevant organization Problem.
Performance wage survey &wage structure
Standard analysis of relevant organization
Problem. Differentiation Rules of
Employee administration Appraisal
Wage payment
Factors Influencing Wages & Salary Structure~
The wages policies of different organizations very some what marginal Units
pay the minimum necessary to affect the required number and kind Of labour .often
these units pay only the minimum wages rates required By labour legislation and
recruit marginal labour.
Some managers believe in the Economy of higher wages. They feel that by
paying high wages, They would attract better workers who will produce more than
the Average worker in the industry. This greater production for Employee means
greater output per main hour Some units pay high wages because of combination of
favorable Product market demand, higher ability to pay and bargaining Power of a
trade union, but a large number of than seek to be Competitive In their wage
programmed they aim at paying somewhere. Near the going rate in the labour market
for the various classes Of the labour they employee.
Most units give greater weights to two wage criteria. Job requirement And the
prevailing rates of wage in the market. Other factors such as Changes in cost of
living. The supply and demand of labour and the Ability to pay is accorded a
secondary importance. The some factor Are affecting the wage and salary
administration.
(I) Job requirement.
(II) Managerial attitudes.
(III) Psychological & sociological factors.
(IV) The organization ability to pay.
(V) Supply and demand of labour.
(VI) The prevailing market rate.
(VII) The cost of living.
(VIII) Living wage.
(IX) Productivity.
(X) Trade unions bargaining power.
(XI) Levels of skills available in the market.
WAGE AND SALARY ADMINISTRATION~A GLIMPSE
Employee compensation is a vital part of human resources management.
Wages, salaries and other forms of employee compensation constitute a very large
component of operating costs. “one of the biggest factors affecting industrial
relations is the salary or wages the compensation are employee receives for a fair
days work”. Majority of union management disputes relate to remuneration. No
organization can expect to attract and retain qualified and motivated employees
unless it pays them fair compensation. Employee compensation therefore, influences
vitally the growth and profitability of the company. Employee compensation is a
very significant issue from the view point of employers, employees and the nation as
a whole.
Employee compensation may be classified into two categories.
1. Base or primary compensation and
2. Supplementary compensation.
Base or primary compensation refers to basic pay in the form of wages and
salaries. It is fixed and non-incentive payment on the basis of time expended on
variable payments based on either individual output or output of the group as a
whole. Administration of employee compensation is called compensation
management or wage and salary administration. It involves formulation and
implementation of policies and programs relating to wages, salaries and forms of
employee compensation include job evaluation, wage salaries survey, development
and maintenance of wage structure rules for administration of wages, profit sharing
and other incentives and control of payroll costs. The basic purpose of wage and
salary administration is to establish and maintains an equitable labour cost structure.
OBJECTIVE OF WAGE AND SALARY ADMINISTRATION
A sound wage and salary administration seeks to achieve the following objectives.
1. To establish fair and equitable remuneration.
There should be internal and external equity in remuneration paid to employees.
Internal equity means similar pay for similar work. In other words, wage differentials
between jobs should be in proportion of differences in the worth of jobs. External
equity implies pay for jobs should be equal to pay for a similar job in other
organizations.
2. To attract competent personnel.
A sound wage and salary administration helps to attract qualified and hard
working people by ensuring an adequate payment for all jobs.
3. To retain the present employees
By paying at competitive levels, the company can retain its personnel. It can
minimize the incidents of quitting and increase employee loyality.
4. To improve productivitivity
Sound wage and salary administration helps to improve the motivation and morale of
employee, which in turn lead to higher productivity.
5. To control costs
Through sound wage and salary administration labour and administrative costs can
be kept in line with the ability of the company to pay. It facilitates administration and
control of payroll. The companies can systematically plan and control labour cost.
6. To improve union management relations
Wage and salary based on systematic and jobs and prevailing pay levels are more
acceptable to trade union. Therefore sound wage and salary administration simplified
collective bargaining and negotiations over pay. It reduces grievances arising out of
wage inequities.
7. To improve public image of the company
Wage and salary programme also seeks to project the image of a progressive
employer and to comply with legal requirements relating to wage and salaries.
PRINCIPLE OF WAGE AND SALARY ADMINISTRATION.
The generally accepted principles governing the fixation of wages and salary are ~.
(1). There should be definite pan to ensure that differences in pay for jobs Are based
upon variations in job requirement, such as skill effort, Responsibility or job or
working conditions and mental and physical Requirement.
(2). The general level of wages should be reasonably in line with That prevailing in
the labour market.
(3).The plan should carefully distinguish between and employees.
(4). Equal pay for equal work~ if two jobs have equal difficulty Requirement the pay
should be the same regardless of who fills them.
(5). An equitable practice should be adopted for the recognition Of individual
differences ability and contribution.
(6). The wage and salary payments must fulfill a wide variety of Human needs,
including the need for self actualization.
(7). The wage should be a clearly established procedure for hearing and adjusting
wage complaints.
(8). The wage should be a sufficient to ensure for the worker and his reasonable
standard of living.
(9). The wage and salary structure should be flexible so that Changing conditions can
be easily met.
ESSENTIALS OF SOUND WAGE AND SALARY STRUCTURE~
The main requirements of a sound structure of base compensation are as
follows,
1. Internal equity~
It implies a proper relationship between wages paid for different
jobs within the company. If, for example, the salary of a clerk is lower than that of a
peon, there is lack of internal equity. Pay differentials should be related to
differentials in job requirements. Fair pay differentials between jobs can be
established with the help of job evaluation. Job evaluation. Job evaluation helps to
determine relative worth of jobs.
2. External competitiveness~
Wage and salaries in the organization should be line with wages and salaries
for comparable jobs in others organization. Otherwise the organization may not be
able to attract and retain competent Personnel. Data relating to pay levels in others
organization can be collected through wage and salary survey.
3. Built in incentive~
Wage or salary play should contain a built in incentive so
as to motive employees to perform better. Such an incentive can be developed
through performance based payment. A part of the total payment should be
linked to industrial or group performance.
4. Link with productivity~
Some part of the total pay should be linked to productivity. Such linkage in
necessary because workers expect a share in productivity gains. This will also
help to control labour costs.
5. Maintain Real Wage~
At least a part of the increase in the cost of living should be neutralized as
to protect the real wages of labour. Dearness allowance is used in India for this
purpose.
6. Increments ~
Compensation policy can be good motivator if pay increase are linked with
merit. But annual increments should partly be linked to seniority or years of
service. The logic for seniority based increments is that as a person accumulates
his skills get sharped and his deficiency tends to increase.
FACTORS AFFECTING WAGE AND SALARY~
The main factors affecting wage and salary levels are as follows.
1. Demand for & supply of labour~
Wage and salary is the price for the services rendered by a worker. Forces of
demand and supply of labour determine the going wage rate. When there is no dearth
of labour (as in India) wage tend to below.
2. Ability to pay~
An organizations ability to pay its employees is an important determinant of
wage level. Ability to pay depends upon the profit earning capacity of the enterprise.
Multination corporations pay relatively higher salaries due to their higher paying
capacity.
3. Labour union~
Well organized trade unions exert pressured for higher wages and allowances.
This pressure is exercised through collective bargaining, strikes & other methods
salary levels in commercial bank are relatively high due to higher bargaining power
of unions.
4. Cost of living~
Due to inflation the real wages decline affecting the purchasing power of
workers. Therefore, dearness allowances are given according to changes in consumer
price index. Labour agreements generally have a clause providing for automatic
increase in pay as cost of living rises.
5. Prevaling wage rate~
While fixing wages prevailing wage in the particular industry region are
taken into account. This is necessary to retain and attract qualified workers.
6. Job requirements~
Basic wage depend largely on the difficulty level and physical and mental
effort required in a particular job. The relative worth of a job can be estimated
through job evaluation.
7. Productivity~
There is an increasing trend towards linking wage increase to gains in
productivity or performance of workers. In some concern annual increments in
wage is based on merit.
8. State regulation~
Wage policy and laws of the government exercise significant influences on
wage levels. Government has enacted laws to protect the interest of toe working
classes. No organization can violet laws relating to minimum wages, payment of
bonus, dearness allowances & other allowances, equal pay for equal work etc.
METHODS OF WAGE SALARY PAYMENT ~
Basically there are two methods of paying labour remuneration & other methods are
combination or modification of these two. One is the time wage system and other is
the piece wage system.
1. TIME WAGE SYSTEM~
Under this system, wages are paid on the basis of time spend on the job
irrespective of the amount of work done. The unit of time may by a day, a week, a
fortnight or a month. In the past daily wages have been most common basis and
therefore it came to known as ``day wage system``.
Time wage system has the following advantages.
Earnings of workers are regular, fixed and do not suffer from temporary loss
of efficiency.
The plant is economical as no detailed records of output are required. Clerical
work in the computation is minimum.
As there is no pressure to speed up production. The quality of work can be
kept high. A worker can show his skill.
This method also avoids wasteful handling of materials and tools.
Learner can concentrate on learning the best methods of work, as their
earnings are not dependent on the amount of work.
In continuous or assembly line production the pace of work is beyond the
control of an individual worker.
The worker can calculate the wage bill in advance.
Disadvantages~
The method provides no incentive for better performance, as reward is not
proportionate to effort.
Guaranteed remuneration makes worker indifferent and complacement.
Calculation of labour cost per unit is different, as the total wage bill does not
change with the volume of production.
In the absences of an incentive to hard work productivity of labour becomes
low unless close supervision is used.
Control over labour cost becomes difficult and more payment may be made
for the lesser amount of work.
There is no basis for finding the merit of different employees and promotions
may have to be made on the basis of seniority.
2. PIECE WAGE SYSTEM~
Under this system, remuneration is based on the amount of work done or
output of a worker. One unit of output is considering as one piece and a specific rate
of wage is paid per piece. Greater is the number of pieces produced by a worker high
is the remuneration. Thus a workman is paid in direct proportion to his output. It is
called payment by results.
Advantages~
There is a direct relation between effort and reward. Workers who work hard
and produce more wages.
Ambitions and efficient workers are provided ample opportunity to utilize
their talent and increase their earnings and there by improve their standard of
living morale.
The method is just and and fair to all. Efficient workers are getting ample
rewards while shirkers are penalized.
Management can be distinguishing between efficient and inefficient workers
for the purpose of promotion etc.
Increase in productivity results in higher output and lower cost of unit.
The cost of labour per unit of output can be easily calculated as the wage bill
varies in direct proportion to the output.
Workers themselves have a state in maximization of efficiency cost
supervision is low.
Workers are more likely to cooperate with the schemes of rationalization
designed to improved efficiency of operations.
Draw Backs~
It is very difficult to fix piece wage rate. Employees often cut the piece rate
when they find workers are producing large quantities.
The earnings of are not stable and they may suffer due to temporary delays or
difficulties
In order to maximize their earnings, workers work with excessive speed. This
may affect their health. It also increases the wastage of materials and wear &
tear of machinery.
Employees may not stress quality so that rigid quality control becomes
necessary.
At creates jealousy between efficient & inefficient workers.
Detailed records of production have to be kept so that the clerical work is
increased.
The method may lead to industrial dispute. Trade unions dislike piece wage
system.
3. BALACE OR DEPT METHOD~
This method is the combination of time and piece wage system. The workers
are guarantied a time rate with an alternative piece rate. If the wages calculated at the
piece rate exceed time rate, the worker get credit. On the other hand, the time wage
exceed piece wage, the worker is paid time wage and the deficit is carried forward as
dept to be recon served in future.
Suppose the time rate is Rs.2.50 per week and the piece rate is Rs.2 per unit.
The wage of a worker who produces 150,100,125, units in three weeks will be
calculated as follows.
This method provides a sense of security of employees. At the same time an
employee is given the opportunities to increase the earnings beyond the guaranteed
time wage. The method is appropriate in industries, where the follow of work is
minimum E.g.: Dock workers. But the rate in this method has to be fixed on the
most. Scientific basis.
THE PROCESS OF WAGE DETERMINATION~
The wage determination process consists of the following steps.
1. Job analysis~
First of all the contents and requirements of a job are analyzed. The data are
collected through job analysis is used to prepare job description and job
specification. On the basis of these statements standard of job performance are laid
down.
2. Job Evaluation~
The relative value of every job is determined through job evaluation. The
relative job value is then converted to money so as to fix basic wage for the job.
3. Wage survey~
Wage or salary surveys are conducted to find out wage/salary levels
prevailing in the region or industry for similar jobs. Other organizational problems
such as recruitment problems, fringe benefits etc. are also considered.
4. Developing wage structure~
On the basis of foregoing steps an equitable wage structure is prepared. While
determining structure several points’ needs to be considered.
Legislation relating to wages.
Number & width of pay grades.
Jobs to be placed in each pay grade.
* Provision for merit increases.
* Differentials between pay plans.
5. Wage administration rules~
Rules are required to determine the degree to which advance will be based on
length of service rather than the merit. The frequency which pay increments will be
awarded, the rules that will govern promotions from one pay grade to another and
the way control over wage/salary costs can be maintained.
6. Employees Appraisal~
In order to reward merit and performance; it is necessary to evaluate the
performance of individual employees. Some differentials in pay are maintained on
the basis of employee’s performance. The is necessary to provide incentive for hard
work and superior performance is evaluated against predetermined standard of
performance.
COMPENSATION STRUCTURE IN INDIA~
Pay structure in a company depends upon several facts eg: wage settlement,
labour market situations, company’s nature and size etc. pay structure consist of
certain grades, scale and range of pay in each scale. Each scale has maximum &
minimum limit.
Pay structure in India generally consist of the following components.
(i). Basic wage/salary.
(ii). Dearness Allowance (DA).
(iii). Bonus and other incentive.
(iv). Fringe benefit.
BASIC WAGE/SALARY~
The basic wage provides the foundation of pay pocket. It is price for service
rendered. It varies according to mental and physical requirements of the job as
measured through job evaluation. In India, basic wage has been influenced by
statutory minimum wage. Wage settlements, and awards of wage boards, tribunals,
pay commissions etc. the committee gave three concepts relating to basic wages.
MINIMUM WAGE~
Minimum wage is that which is sufficient to cover the bare physical needs of
a worker and his family. But the committee felt that the minimum wage should
provide not merely for the base subsistence of life but for the preservation of the
health, efficiency and well being of the worker by providing some measure of
education medical facilities and other amenities. Statutory minimum wage is fixed
from this point of view.
Need Based Wage
The standard working class family should be taken to consist of three
consumption units for the on earner, disregarding the earnings of women children
and adolescent.
Minimum food requirements should be calculated on the basis of a net intake
of 2700 calories, as recommended by Dr. Aykroyed for an average Indian
adult of moderate activity
Cloth requirements should be 18 yards per consumption unit annum.
Rent is to be calculated as per the minimum charged by the government under
the subsidized industrial housing scheme for low income groups.
Fuel, lighting and other miscellaneous expenditure is to constitute 20% of the
minimum wage.
Fair Wage
A fair wage is something more than the minimum wage providing the bare
necessities of life. While the lower limit of the fair wage is set by the minimum wage
upper limit should be the capacity of the industry to pay thus the fair wage should be
determined on industry cum region bias. Fair wage is step toward the ideal of living
wage.
Living Wage
It is the wage that provides, in addition to the necessities life, certain
amenities considered for the well being of the worker in a particular society. It
should ensure a normal standard of life to the average employee regarded as human
beings living in civilized community.
The concept of living wage is dynamic related with the level of economic in a
country. There should be progressive improvements in a country. Also with the
improvements in the economic life of the nation. In an under developed country like
India, wage is the ideal or target that is to be achieved through higher productivity.
STATE REGULATION OF INDIA
India aims at rapid economic growth, industrial peace, price stability, equitable
distribution of income and progressively rising standard of living for the working
class. In order to realize these objectives the government of India regulates wage
rates through the following method.
(A) The Minimum Wages Act 1948
The Govt. realized that wages in sweated trades cannot be leaf to be
determined on the basis of free play of demand and supply in the labour market
Therefore, the government (central & state) prescribes minimum rates of wage in
certain sweated unorganized employments specified under the minimum wages act.
The act also provides for the regulation of over time rate. The minimum wages act
can be fixed by hour, day month or such other longer period. The act provides for
setting up of tripartite machinery (Consisting representatives of employers unions
and the government) to advice the appropriate government in fixation and revision of
minimum wage rates. The also provides for the review and revision of minimum
wages at intervals not exceeding five years. The real aim of the minimum wages act
is to prevent exploitation of labour through payment of unduly low wages. But
implementation of the act has not been satisfactory.
(B) The Equal Remuneration Act 1976
The main object of this act is to prevent discrimination in remuneration on the basis
of sex. Under the act it is the duty of employer to pay equal remuneration to men &
women workers for the same work or work of a similar nature. No discrimination is
to be made against women in recruitment and in conditions of service unless
provided for under any law for the time being in force.
(C) The Payment of Wages Act 1936
The main object this act to ensure regular and prompt payment of wages and to
prevent unauthorized deductions & arbitrary fines from the wages. It also regulates
the rate of payment for overtime work. The act is applicable to persons employed in
factories/industrial establishments and drawing less than Rs. 1600 per month.
(D) Section 529-A of the Companies Act 1956
This section aims to protect workers claim in the event of insolvency of their
employer. In case of winding up of a company workers dues to be paid in priority all
others debt in full. If company’s assets are in adequate to meet these in full, these
dues and debts due to several creditors are to abate in equal ratio.
(E) The Industrial Dispute Act 1947
Under that act cancellation is compulsory in all wage disputes in public utility
services and optional in other industrial establishments. The Act also empowers the
appropriate government to constitute on or more industrial Tribunals or National
tribunals and to refers a wage dispute to these tribunals for adjudication.
(F) Wage Boards
Government of India sets up tripartite wage boards on industry wise basis to fix and
revise pay, these boards are setup on adhoc basis on the demand of trade unions and
employers as there is no law providing for their establishment. A wage board
consists of an impartial chairman, tao independent members each.
While determining wages, wage boards take into account the following factors.
Need based minimum wages.
Industry’s capacity to pay.
Productivity of labour.
Prevailing rates of wages.
Various wage legislation.
Level of income & its distribution.
Place of the industry in the economy.
Need of the industry in a developing economy.
Requirements of social justice.
Need to provide incentive for improving productivity wage boards have been
helpful in standardization of wage structures.
(G) Pay Commission
Wages and allowances of central and state govt. employees are determined
through pay commission. The disputes arising out of pay commission award and
their implementation are decided by commission of inquiry, adjudication by
tribunals and the joint consultative machinery.
Dearness Allowances (DA)
This allowance is given to protect the real wages of workers during inflation.
Under the section -3 of minimum wages act it is described as cost of living
allowance. DA has now become an integral part of the wage system in India. The
following methods are used to calculate dearness allowance.
a. Flat Rate~
According to this method, DA is paid at a flat rate to all workers irrespective
of their wage levels and regards less of charges in the consumer price index. This is
used in jute, cotton and engineering industries west
Bengal in the early days of adjudication.
b. Graded Scale~
Under this method, DA increase with each slab of salary. Therefore, DA as a
percentage of basic pay decreases steadily as shown in the following.
Graduated scale of DA.
Pay Scale (RS.) Amount of DA DA as percentage of
Maximum of the pay scale
0-500 100 20
500-1000 150 15
1000-1500 200 13
1500-2000 250 12.5
c. Index based DA~
In this method a flat rate per paint of index is prescribed so that all workers
determined the same amount of DA irrespective of their pay scale. For example, if
Rs. 1.50 is the rate Rs. 15 will be paid as DA whenever the all India consumer price
index (AICPP) increases by 10 points. This method is a force in cotton mills of
Bombay and madras and in many central govt. undertakings.
d. DA linked to index and pay scale~
Under this method, a higher rate of DA is prescribed for lower pay scale and a
lower pay rate scales. This method is for paying DA to employees in govt. offices
and in many central public sector undertaking
In addition to DA several types of allowances are in use. Main type of
allowance paid to employee
House Rent Allowance
City Compensatory Allowance(CCA)
Conveyance/Car Allowance
Bank Allowance
Medical Allowance
Education Allowance
Tiffin Allowance
Bonus
Bonus began to pay as an ex-gratia to workers of textile mills in Bombay and
Ahemadabad after the First World War some experts argue that bonus is differed
wage aimed at bridging the gap between actual wages and need based wage. It is also
argued that bonus is share of the workers in the prosperity of an enterprise. Bonus
may also be regarded as an incentive to higher productivity.
According to bonus commission (1961), bonus is sharing by the workers in
the prosperity of the concern in which they are
employed. In the case of low paid workers such sharing in the prosperity arguments
their earnings and helps to bridge the gap between the actual wages and need based
wage. It has little direct incentive effect because it is actually paid to all workers at
the same rate irrespective of their individual efficiency and long after the close of the
financial year.
Payment of bonus Act 1965
The act provides for the payment of bonus to person employed in specified
establishments. The main provisions of the act as follows.
1. Every employee in the specified establishments drawing a salary (basic pay + DA) not exceeding RS.2500 per month entitle to bonus provided he has worked for not less than 30 days in the year.
2. Bonus is to be calculated on all salary of RS.1600 Per month wherever the actual salary exceeds the limit.
3. Every employer is to bound to pay a minimum bonus of 8.33% of the salary of an employee or RS.100/ year whichever is higher whether or not he has any allocable surplus in the accounting year.
4. If in any accounting year the allocable surplus exceeds the amount of minimum bonus payable to employee the employer shall pay a higher bonus subject to a maximum of 20% salary of wage.
5. The surplus or deficit in the allocable surplus can be carried forward to be set off or on during the next four years.
6. Where an employer has not worked for all the working days in any accounting year, the minimum bonus of RS.100 or 60 as the case may be, shall be proportionately reduced. If such bonus is higher than 8.33 of his salary or wages.
7. No minimum bonus is payable by a newly setup establishment in the circumstances prescribed under section 16 of the act.
8. The bonus is to be paid within 3 months from the close of the accounting year.
9. An employee dismissed from service for fraud, theft, misappropriation or sabotage or property and riotous/violent behavior on the premises or the establishment in not entitled to bonus.
10. An employer can deduct puja or other customary or interim bonus paid to the employee from the bonus payable under this act, similarly, any financial loss to the employer due to misconduct of an employee can be deducted.
11. Employers and employee can enter into any agreement or settlement for payment of productivity linked or other type of bonus subject to the minimum maximum limits of bonus prescribed under the act.
NATIONAL WAGE POLICY
Wage policy is a sensitive and complex area of public policy because wages exercise a significant influence on income distribution, prices and industrial relations. Such a policy should aim at the following.
For optimum allocation of resources and full employment.
To secure optimum rate of economic progress with stability.
To provide maximum economic security to all sections of society.
To establish wage levels at highest possible levels, which the economic condition of the country permits.
To ensure the wage earner a fair share of the increases prosperity resulting from economic development.
A sound wage policy helps to prevent labour exploitation by prescribing statutory minimum wages, by ensuring equal pay for equal work, by Providing for logical wage differentials, by protecting real wages through compensation for rise in the cost of living and linking wages to productivity.
At present no national wage policy exists in India. However, some norms have been laid down by the following.
1. committee on fair wage(1948)
This committee introduced the concepts of minimum wages fair wages and living wage. These concepts have been explained above. The committee pointed out that “any attempt to evolve principals for governing the fixation of wage must be made against the back ground of general economic condition of the country and level of national income.
2. National commission at labour(1969)
The commission suggested “The wage policy has to be framed taking into account such factors as the price levels which can be sustained, the employment level to be aimed at requirement of social justice and capital formation need for growth” According to the commission a national minimum wage is not feasible due to wide spread regional differences in the country.
3. Chakra borty committee (1974)
The economic stressed the need for :
Uniformity in wage payments across region, industries and occupations.
It suggested that a national board should set up. These authorities will
Evaluate all jobs, work out a grade structure on the basis of skills differentials and fix wages for each grade.
4. Bhoothalingam study Group (1978)
The group recognized wide spread disparities and anatomies in wages in the country. It suggested that appropriate guidelines should be evolved to reduce such disparities and to raise gradually the areas of unduly depressed wages. The group recommended the following adjustments.
A periodic increment in wages linked to time.
Some protection of wage against the rise of cost of living.
Some linkage between wages and productivity.
A correction of large wage differentials for jobs requiring same degree of stress and responsibility.
A set of corrections to reduce the disparities with in and across industries/sectors.
There should be a limit to the salary which could be RS.6000.
Social security benefit should be provided in all sectors.
EXECUTIVE COMPENSATION
The pay pocket of executives consist of several components such as
straight salary
Bonus based on company’s profits or commission as percentage of profit.
Stock options involving issue of the company’s shares at a special rate, which is lower than market value.
Fringe benefits or prerequisites such as free finished housing, savants, chauffer, driven car free telephone, leave travel concession, news papers and magazines, clubs memberships, membership of professional association, discount coupons etc. executive compensation depends on several factors. Some of which are follows,
Complexity of the job.
Capacity to pay
Education and experience
Performance
economic environment
legislation
Category of managerial personnel Maximum percentage of
Annual net profit
Total remuneration payable to managerial
Personnel 11%
Managing whole time director one more
Than one 5%
COMPANY PROFILE OFJAYPEE GROUP
CORPORATE PHILOSOPHYAny corporate entity needs to be dynamic and vibrant, responsive to the
changing economic scenario and flexible enough to absorb environmental and physical fluctuations. It must harness the inherent strengths of available resources and must possess the capacity to learn from success. More than anything else, it should ensure growth with a human face.
(SHRI JAIPRAKASH GAUR)OWNER OF JAIPRAKASH ASSOCIATES LTD.
Jaypee group is the 4th largest cement producer in the country. The groups cement facilities are located in the Satna Cluster (U.P), which has one of the highest cement production growth rates in India.
The group produces Ordinary Portland Cement and Pozzolana Portland Cement under the brand names “Buland” and “Buniyad”. Its cement division has three modern, computerized process control cement plants namely, Jaypee Rewa Cement Plant (JRCP), Jaypee Bela Cement Plant (JBCP) with an aggregate capacity of 7.0 MTPA. With its plans of adding capacities in different regions of the country, the Group is poised to be a 25 MTPA cement producer by the year 2010 and 30.5 MTPA by 2011. Thus, it is likely to be third largest cement producer in the country.
Keeping pace with the advancements in the IT industry, all the 120 cement dumps are networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7 connectivity between the plants and all the 120 points of cement distribution in order to ensure “track – the – truck” initiative and
Provide seamless integration. This initiative is the first of its kind in the cement industry in India.
HISTORY OF JAIPRAKASH ASSOCIATES LIMITED:With a single minded focus in mind, to achieve pioneering myriads of feat in
civil engineering, Shri. Jaiprakash Gaur, the founding father of Jaiprakash Associates Limited after acquiring a Diploma in Civil Engineering in 1950 from the University of Roorkee, had a stint with Govt. of U.P. and with steadfast determination to contribute in nation building, branched off on his own, to start as a civil contractor in 1958.
Historical Milestones
Year 1957
Completed first work as contractor in Kota (India).
Year 1979
Jaiprakash Associates Private Ltd. ( JAPL)
Year 1980
Hotel Siddhart was set up.
Year 1982
Hotels Vasant Continental set up.
Year 1986
Commissioning of Ist Unit of 1 MnTPA Jaypee Rewa Plant(JRP) in District Rewa,(M.P.)Formation of Jaiprakash Industries Limited(JIL) by amalgamating JAPL in Jaypee Rewa Cement Ltd.
Year 1991&1992
Formation of Jaiprakash Hydro Power Ltd.(JHPL) and Jaiprakash Power Venture Ltd. (JPVL)
Year 1995
Formation of Jaiprakash Power Ventures Ltd.(JPVL)
Year Establishment of Jaypee Bela Cement Plant (JBCP) with an
1996 initial capacity of 1.9 million tones.
Year 1999
Jaypee Palace Hotel, Agra setup.
Year 2000
Acquisition of land for Jaypee Greens Ltd .
Year 2001
Commissioning of 0.6 MnTPA Jaypee Cement blending Unit in District Allahabad in U.P
Jaypee Institute of Information Technology (Deemed University since November 1, 2004) at Noida setup.
Year 2002
Commissioning of 1.0 MnTPA grinding unit in District Ambedkar Nagar in U.P.
Jaypee University of Information Technology (State University), Waknaghat setup.
Year 2003
Commissioning of 25 MW Captive Thermal Power Plant-II at JRP.
Formation of Jaiprakash Associates Ltd. (JAL). Jaypee Institute of Engineering technology, Guna set
up.
Year 2004
Commissioning of 25 MW Captive Thermal Power Plant-II at Jaypee Bela Plant.
Year 2005
.Successful Completion of up gradation scheme enhancing the total capacity of ‘Rewa Operations’ to 7.0 MnTPA
Year 2006
.Setting up of Madhya Pradesh Jaypee Mieral Corporation Ltd.(MPJMCL).
Railway siding operational at Jaypee Bela Plant.
Year 2007
Signing of MOU with Gujarat Mineral Development Corporation (GMDC) for setting up a new Green field cement plant of 1.2 MnTPA capacities, in JV in District Kutch, Gujarat.
Signing of MOU with Government of H.P for setting up a new green field cement plant of 2.0 MnTPA capacity
in District Chamba, HP.
MOTTO:
The Group is committed towards the safety and health of employees and the public. Our motto is ' Work for Safe, Healthy, and Clean & Green Environment
ORGANIZATION CULTURE: Culture is the unique collective of shared beliefs, values and customs that influence the behavior of members in an organization and helps them succeed in achieving the desired goal.
The growth is propelled by the vision of its leadership and their willingness to demonstrate their passion and commitment by way of leading by examples. And the success and growth has always been cherished at Jaypee cement and in its Hydropower initiatives and is lived through a human face. The ethical standing of the organization is evident in unquestioned Credibility it has patiently built over the years with all its stakeholders. A sense of bonding and ownership is visible and felt through the immense Commitment that people across levels have demonstrated, in both the good and tough times of the organization.
The Jaypee family feels confident of achieving these goals with the help, support, passion and abilities of both its old and new members. A confidence that comes from our belief that’ you have to be the change you want to see in the world.’
IMPORTANCE OF VALUES IN JAYPEE:
Values are the building block for determining the kind of organization one wishes to nurture and sustain. Values help the organization in strengthening our present so as to consolidate the organizational character.
To be effective and to support the organizational culture, we must ensure that:
We clearly understand and embrace the organization’s values and beliefs.
Business practices are carefully aligned with the values and beliefs.
Values and beliefs are reinforced in all internal communication.
All our actions are consistent with the direction set forth in the values and beliefs.
INDRADHANUSH-THE JAYPEE WAY OF LIFE:
The JAYPEE way of life can be best represented by the Indradhanush. The Indradhanush or rainbow of seven different colors stands for seven values.
The philosophy of indradhanush has been carried into the form of a tree. The common thought is the tree stands for life and by inference, strength and prosperity. Its philosophy teaches us stability, perseverance and service for a greater good.
Jaypee Sidhi Cement PlantIntroduction :
The Jaypee Sidhi Cement Plant (JSCP) is being set up in district Sidhi of Madhya Pradesh with an installed capacity of 2 MTPA Apart from this, it will have 35MW of Captive Thermal Power. The plant is scheduled to be commissioned by September, 2008
During the period, majority of employees of JSCP had to undergo various training workshops conducted at Technical Training Group (TTG), Jaypee Nagar and at JSCP (Jaypee Vihar) as an initiative taken by the P&A department in developing the human resources. A total of 174 employees attended the structured training programs on wide subjects such as Indradhanush. SAP (PM Module, HR Module, Fl-Co Module, MM Module), Radiological Safety, Steam Technology, Safety in Scaffolding and working at Heights, First Aid, QC and Production, Advance Mining Techniques and Practices, Drilling and Blasting etc. The endeavour has registered a positive impact on employee performance
Project Sum -
When the clinker production commenced at Jaypee Sidhi Cement plant on 04.01.09, it was a unique fete. Jaypee had once again made history by doing the impossible, having taken up a limestone deposit known to the geologists over decades as low grade and highly heterogeneous. No business house dared to go ahead after initial evaluation of deposits but jaypee went ahead procuring the best of global technologies to cope with the vagaries of the geological nature of local limestone formation and producing quality clinker.
A search is on the locate a high grade limestone deposit in a radius of 20-30 KM from the plant as a safeguard against statistical fluctuations in the mineral supplied from the project mining leases. When delays due to government clearances were foreseen the management took a bold step in having opened up a mine belonging to a small mine owner about 22 KM away at a place called Deodaha. The limestone obtained is stocked for blending purposes when the quality parameters from the company's mines are difficult to adjust to the required level. This effort is an insurance against the risks with site minerals.
Achievement of the Unit -
The teething troubles at the plant and the mines have been overcome systematically and a record kiln feed rate of 300 TPH against the designed 310 TPH already achieved on 10.03.2009. A record production of 4000 MT has been achieved on 13.04.2009 while a record dispatch of 4538.58 MT of clinker achieved on 12.03.2009.
Mines could build up a stock of over one lakh tones of limestone for feed to plant by end of February 2009 by fighting back multifarious factors like land availability, high overburden ratio, water influx from the canal passing through the leasehold area and the known low quality patches requiring selective supply of blasted limestone to the plant. The highest production rate of 9000 TPD was touched on the 10th day of start of mine production.
The Personnel Department has a large pool of manpower on job. trained to meet the challenge of running the plant safely and efficiently. The knowledge and skills needed for various jobs are imparted through various "Training workshops" conducted both at Jaypee Vihar and the Technical Training Group at Jayee Nagar. Special orientation programmes and structured training programmes are conducted expeditiously and painstakingly for the EDP, Electrical, Instrumentation, Mechanical, Mining QC and Production department covering a total of 281 executives and staff. Special attention has been given to training for SAP implementation which has for reaching implications for the operational productivity.
JSCP SIDHI gives various monitory remuneration to its employees. Besides the monitory remuneration to the employees the company also has various schemes for welfare of the employees providing adequate facilities in the areas of medical, housing, canteens, sports, ambulance, and educational facilities, cultural activities and other facilities. The companies township at this manufacturing unit have schools, where the children study. Medical facilities have been provided in the township. The company has been encouraging the sport and cultural activities for the employee in order to develop a sense of healthy competition and social interaction amongst the employees.
Facilities are also provided for holding cultural meet and other social activities from time to time. An annual meet of music, dance and variety entertainment in which talent from JSCP employees from all the units take part, generate competition in this field also. The township have clubs and community centers which provide forum for satisfying the social needs of the employees.
1. CANTEENS:- In JSCP factory premises the number of blocks, section and department have
been established. To provide refreshment to employees there are provide canteens and as near to the work place of the workers. Canteen serves tea, Snakes, Lunch, Dinner, & cold drinks. The cleanness of the canteens is inspected by the management from time to time.
2. MEDICAL FACILITIES :- The JSCP medical attendance rule apply to all employees trainees and apprentice and their family there is dispensary inside the company campus. All employee & their families are to free medical attendance & treatment in JSCP dispensary in the case of serve illness. Company ambulance van be utilized at the discretion of the authorize medical attendance for bringing the patient to the dispensary.
3. TRANSPORTATION FACILITIES : - The JSCP in SIDHI there are number of employees employed since the company is at a distance for 40-45 km from city. It provides the transportation to its employees. There are 5 buses which take employees to the city and employees children to their schools.
4. HOUSING FACILITIES :-The JSCP Sidhi unit is established 200 companies quarter. Including Ban
glows & flats. For the executives areas of the residential place for employees are divided in to town ship. Each town ship has number of sector & provided with the
facilities of Post office, Telephone, club, Security’s Assistance, Bus services. At present about 50% or 60% employees are getting benefit of the housing facility.
5. RECREATIONAL FACILITIES :-JSCP Sidhi has provided clubs in its township near the employee’s residence
the employees & their children take the advantage of clubs for various sport and games.
Various facilities are provided for holding culture meets and other social activities in JSCP from time to time. Annual meet of music, dance and variety entertainment in which JSCP employees. The club and community center provides a forum for satisfying the social needs of the employees. The company JSCP makes arrangement for picnic from time to time.
6.GARDEN : -In JSCP Sidhi a beautiful Garden is also maintained neatly like HAVEN with
different types colored flowers 7 various types ducks pair and birds is their and inside the garden two beautiful pools. The boat is available in the pools for the boating.
7. SOCIAL OBLIGATION : -To fulfill its obligations towards society. All the employees of JSCP donated
one-day pay to the KARGIL fund. Amounted to …………………….
In the pursuance for the love of country.
Jaypee Rewa PlantUnit-I: It was commissioned in 1988 with a capacity of 1.0 million MT.
Unit – II: It was commissioned in 1991 with a capacity of 1.5 million MT.
Jaypee Rewa Cement Unit-I was fully engineered by Holtec Engineer’s Pvt. Ltd. and for Jaypee Rewa Cement Unit-II, the engineering and consultancy services were provided jointly by Holtec Engineers and Holder bank management and consulting ltd. Switzerland. The choice of machinery from equipment manufactures of world reputed and the extent of sophistication and modernity incorporated – in the cement plant reflect the concern of the management to customers. The JAYPEE REWA plant with two units has a capacity of 3 MTPA and grinding & blending units of 1.6 MTPA are in Uttar Pradesh.
JAYPEE CEMENT AT A GLANCE
Present capacity 7 million tones – the single largest cement complex at one location in India.
New plant of 3 million tones capacity being set up in Himachal Pradesh (including grinding unit of 1.5 million tones capacity at Panipat, Haryana) by March 2007. Purchase of 2.6m MT brown field plants of erstwhile UP State Cement Corporation and take over of Anchal Cement, Gujarat & Sidhi, M.P. will take the total capacity surpassing 20 million tones mark.
All the three plants have received the ISO 9002 certification from the world – renowned accrediting agency BVQI.
A wide range of World class cement of OPC grades 33, 35, 53 IRST 40 and the all special blends of Pozzolana cement such as Buniyad & Buland all surpassing applicable BIS standards. Shortly introducing Low Alkali cement.
Buland Cement the only blended cement having a 28 days compressive strength of 55 Mpa certified ty IIT Roorkee & IIT Delhi. Buland cement today is known for its engineering quality, strength & durable construction and enjoys market leadership status in all the markets where it is sold.
A large network of 102 dumps catering to more than 3000 stockist spread across U.P., Uttaranchal, M.P., Bihar, Jharkhand, West Bengal, North East Delhi and Nepal.
Largest selling in Uttar Pradesh & Uttaranchal with a combined market share of approx 19% and 20% market share in Madhya Pradesh.
Consistently the largest exporter of cement & clinker from India to Nepal during the last 7 years.
More than 750 Kms of National Highways being reconstructed with more than 8 lac tones of Jaypee Cement Likely to be consumed in the same.
Jaypee Cement being used in the construction of large dams and hydro electric power projects like the Tehri Dam in Uttaranchal, Dul hasti and Baglihar projects in Jammu & Kashmir, Indira Sagar dam in M.P., Teesta – V project in Sikkim, Baspa-II, Nathpa Jhakri and Chamera –II projects in H.P. and tala project in Bhutan.
List of prestigious clients include NTPC, NHPC, GAIL, IOC, NFL, Indian Railways, L&T, Gammon, HCC, Som Datt Builders, IRCON, UPSBC, Hindalco to name a few.
Creation of large multi locational Technical cells to support & educate our consumers on usage of cement in various types of construction.
Recently awarded the “National Safety Award” by the National Safety Council of India for developing and implementing very effective management systems and procedures and attaining very high performance levels in occupational safety and health.
“The customer is the most important visitor on our premises. He is not dependent on us we are dependent on him. He is not an interruption on our work he is the purpose of it. He is not an outsider on our business; he is a part of it. We are not doing him a favor by serving him; he is doing us a favor by giving us an opportunity to do so.”
- Mahatma Gandhi
ORGANISATIONAL - OVERVIEW
Concept of “TOT AL QUALITY” reflected in the Organization’s:-
Vision
Mission
Values
Vision and mission provide the organization and their people the energizing force to contribute towards organizational excellence, and the super ordinate goal to contribute towards nation and society building with a human face. Unlike some other organizations whose vision and mission are fixated on only market share and / or revenue growth JAYPEE has a holistic approach. Company’s vision and mission address “Quality” in all areas of our business; and there in it is heavily emphasized to take care of:
Environment
Society
Company’s people
While pursuing the growth target by optimum utilization of available resources i.e. “QUALITY-POLICY”
VISION of the Company
To be dynamic and vibrant, responsive to the changing economic scenario, and flexible enough to absorb the environment and fiscal fluctuations. Harness the inherent strengths of available human resources and material, have the capacity to learn from success and, more than any thing else, ensure with a human face.
MISSION of the Company
To ensure growth for improving the quality of life, with a human face and contribute to the growing national economy, maximizing benefits to our customers and the nation at large by serving the core sectors of the economy.
The holistic approach of the vision and mission is further reinforced by the values JAYPEE group, which the entire group adheres to. These value statements are predominantly displayed in the plant areas and across the organization. Leaders not only reinforce the value system among our people but also act accordingly.
Objectives of the study
1. To study the various aspects of ‘wage and salary administration.
2. To know the various statutory & voluntary allowances of salary available in Jaypee Sidhi Cement Plant.
3. To study the employees satisfaction at Jaypee Sidhi Cement Plant.
4. To study what are the modes & methods of wage & salary administration.
5. To study the needs to be done for improving wage and salary administration & employees satisfaction.
6. To make the suggestion & recommendation to improve the remunerative systems.
RESEARCH METHODOLOGYResearch methodology is the systematic method of discovering new facts or
verifying old facts, their sequences, inter-relationship, casual explanations and the natural laws that govern them. The primary objective of research methodology is to get true & intimate knowledge of organization & its function, wage & salary administration in the organization and to understand the wage & salary administration.
Period of study~ 4th may to 3rd June.
Type of research~ Descriptive research.
Sources of data~ Both primary & secondary data have been used.
1. Primary data
The primary data was collected through observation, interviews; interview schedules personnel visit to obtain the necessary information. The only instrument used was a structured interview schedules for the study. The interview schedules were related and then certain modifications were made wherever necessary to suit the research objectives. The questionnaire was given to respondents for collection of data.
2. Secondary data
Secondary data was obtained from company records, magazines, annual reports & from www.JAL.CO.IN etc.
Sampling unit~ Employees of JAYPEE cement Rewa.
Sampling technique~ simple random technique.
Sample size~ A sample of 50 employees was selected for this survey.
Sample design~ it is impossible to use the census method to collect the information. Therefore, random sampling is done. The sample choice of choosing a particular universal element is unknown. Convenience sample is one choose purely for suitableness i.e.; items are selected because they are easy and cheap to find and measure. The size of sample was 50 employees.
Probability sample could not be used because it is more scientific method of sampling than non-probability sampling. Every possible sample has a known and equal change of selection. The shortage of time and financial limitations did not allow the researcher as the study has been conducted fully on her expenses.
Following characteristics of a sample design were kept in mind~ The sample should be truly representative of the particular.
It must result in small sampling error.
It must be variable in the context of funds available for the research study.
The systematic basis in the sampling must be controlled in a better way.
Sample should be such that result of the sample study can be applied, in general, for the responsible level of confidence.
Tools for data collection ~ Following tools are used to collect data from JAYPEE.
1. By observation~ some of the information is collected by way of the observation, without interviewing the employees of the organization.
2. Questionnaire~ the method of collecting data by mailing the questionnaire to respondents is the most extensively employed in various economic and business surveys. Questionnaires are prepared and distributed to all the selected employees with a request to return after completing the same. Dichotomous (yes or no answer), multiple chouse (alternative answer listed) and upon question have been used in the questionnaires.
Following major characteristics were kept in mind to prepare the questionnaire~
Questionnaire should be short and simple.
Questionnaire should proceed in logical sequences moving from easy move difficult questions.
Questionnaire affecting the sentiments of the respondents should be avoided.
Adequate space for answer should be provided to help editing and tabulations
Clarity of questions.
ANALYZING THE COLLECTED DATA
Classification of data~ Data having common characteristics are placed in one class and in this way the enter data get divided into a number of group and classes. After collection of data I have classified in the form of table of related facts. Facts in one class differ from those of classification and summary from is obtained.
Tabulation~ when the data has been classified it is arranged in the form of the table. The tabulation is dependent upon classification. The purpose is to simplify the presentation and facilitate comparison.
The data, which are collected, are arranged in columns and rows for summarizing and meaningful from. Table involves orderly and systematic presentation of numerical data to make it easy to analyze.
For presenting the data we used simple table. This sample table enables full information to be incorporated and facilities a proper consideration of all related facts.
Graphical representation~ the tabulated data has also been represented in the form of graphs and charts to make it more understandable and help in drawing conclusions.
Finally conclusions are drawn from the collected data to accomplish the objectives.
BEST ASPECT OF JOB
28
10
12
0
5
10
15
20
25
30
GOOD PACKAGE GOOD PROFILE CONDUCIVE WORKINGENVIRONMENT
NO . OF RESPONDENTS
Employees believe that their package is the best aspect of their job. They are convinced with the remuneration being offered. 12 out of 50 respondents believe that it is the work culture and the conducive working environment that seems to be the most attractive aspect of the job. Only 10 respondents however believe that their profile is good and for a good career quality matters.
BEST WAY TO APPRECIATE WORK
16
43
27
0
5
10
15
20
25
30
PROMOTIONS INCREMENTS PUBLICACCLAMATION
EMPLOYEE REWARDS
NO . OF RESPONDENTS
Most of the respondents believe that employee rewards is the best way to appreciate work because employee rewards may be the best motivation factor to appreciate work in further also. Some employees believe in promotions because if employees will get promotion soon, this will directly affect the work efficiency. And some employees think that the increments& public acclamation may also be best way to appreciate work.
SATISFACTION OF EXECUTIVES WITH WAGE/SALARY ADMINISTRATION CELL
19 respondents are very satisfied out of 50 respondents, 29 are satisfied and only 2 respondents are not satisfied, with wage/salary administration cell at
JAYPEE. Mostly respondents are satisfied, due to many reasons such as good package which is paid to correctly and promptly. Therefore, according
to this analysis the satisfaction of employees towards the wage/salary is high.
REVISION OF PAY STRUCTURE
As can be seen from the analysis, most of respondents believe that the personal department is involved in the process of revision of pay structure; some also believe in finance department, few however believed management consultant & surveys conducted by professional organization are also useful in revising of pay structure.
SATISFACTION FROM PAY STRUCTURE WITH RESPECT TO OTHER COMPANIES
32
16
2
0
5
10
15
20
25
30
35
NO. OF RESPONDENTS
VERY SATISFIED SATISFIED NOT SATISFIED
Most of the employees at JAYPEE are very satisfied from pay structure in comparison to other companies because the package offered here is lucrative. Employees can fulfill their needs. Other benefits like medical, bonus, HRA, etc. are paid to employees correctly and promptly. Therefore, it can be said with additional benefits covering all important aspects, JAYPEE takes good care if its employees further leading to high satisfaction.
6
44
0
5
1015
20
25
30
3540
45
NO. OF RESPONDENTS
YES NO
RESPONSES
Maximum numbers of employees don’t want improvements in company’s pay structure it implies that they are fully satisfied from company’s pay structure and also satisfied with the profile & working environment.
MEANS OF IMPROVEMENT IN COMPANY’S PAY STRUCTURE, IF ANYIMPROVEMENTS, 6
NOT IMPROVEMENTS,
44
2
1 1
2
0
0.5
1
1.5
2
2.5
TIME SPAN OFRECEIVED
AMOUNTRECEIVED LESS
THANEXEPECTED
MODE OFPAYMENT
ANY OTHER
RESPONSES
RESPONDENTS WHO NEED
IMPROVEMENTS
6 respondents want improvements in different form 6 out of 50 believe in time span of received. According to them time span of received should be reduced. Some want improvements in form of others like management of pay structure some respondents are not satisfied with their pay structure so, they want improvement in amount received. According to analysis 88% employees don’t want improvements in any form.
WILLINGNESS TO CHANGE ORGANIZATION
YES, 4
NO, 46
If company does not improve its pay & incentive policies, most of the executives say that they are not willing to change the organization because, they are satisfied with the organization in form of pay structure, profile, conducive working environment, acknowledgement, employee’s rewards etc. After this analysis, we can say that the satisfaction of executives from pay structure at JAYPEE is very high.
PAY STRUCTURE REVISION
36
4
37
0
5
10
15
20
25
30
35
40
ALL INDIAINDUSTRY LEVEL
REGIONAL LEVEL COMPANY LEVEL UNIT/PLANTLEVEL
NO. OF RESPONDENTS
Mostly respondents believe that the company’s pay structure revision should take place at the unit/plant level, because the production of cement in JAYPEE is high in comparison to other cement plant and in the share market this company takes place always at good position and the company’s economic condition is so good. Some respondents also believe that all India industry level, because according to them, every things regulate so, every one gets benefit from that, if pay structure revision at al India industry level.
Data Presentation & Analysis
1. What is your Gross salary?
a. Below 2 lakh b. 2 lakh to 4 lakh. c. 4 lakh to 6 lakh.
d. Above 6 lakh.
25%
35%
22%18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Below 2 Lakh 2 lakh to 4 Lakh 4 lakh to 6 Lakh above 6 Lakh
2. What is the best aspect of your job?
a. Good package.
b. Good profile.
c. Conducive working environment.
42%38%
20%
0%5%
10%15%20%25%30%35%40%45%
Good package Good profile Conducive workingenvironment
3. What according to you is the best way to Appreciate your job?
a. Promotions.
b. Incréments.
c. Public Acclamations.
d. Employee Rewards.
25%
30%
24%21%
0%
5%
10%
15%
20%
25%
30%
35%
Promotions Incréments PublicAcclamations
EmployeeRewards
4. How satisfied are you with the wage/salary administration cell in your organization?
a. Very satisfied
b. Satisfied
c. Not satisfied.
25%
60%
15%
0%
10%
20%
30%
40%
50%
60%
70%
Very satisfied Satisfied Not satisfied
5. Who, out of the following is involved in the process of formulating/revising your pay structure?
a. Employee of your organization.
b. Personal department.
c. Finance Department.
d. Compensation surveys conducted by professional
Organization.
e. Management consultant.
f. Any other (please specify)…………………
30%
10%15%
30%
15%
0%5%
10%15%20%25%30%35%
Em
ploy
ee o
fyo
uror
gani
zatio
n.
Fin
ance
Dep
artm
ent.
Man
agem
ent
cons
ulta
nt.
6. Are you satisfied with the pay structure of the employees in terms of those of other comparable organization?
a. Very satisfied
b. satisfied
c. Not satisfied.
30%
50%
20%
0%
10%
20%
30%
40%
50%
60%
Very satisfied Satisfied Not satisfied
7. Do you want improvement in your company’s pay structure.
Yes/No
If yes, in what form-
a. Time span of received.
b. Amount received less than expected.
c. Mode of payment.
d. If any other, specify………………….
25%
30%
24%21%
0%
5%
10%
15%
20%
25%
30%
35%
Time span ofreceived
Amount receivedless thanexpected
Mode of payment If any other,specify
8. If your company does not improve its pay & incentive policies, would
You like to change your organization?
a. Yes
b. No
60%
40%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
9. At what level wage negotiation/revision take place in your company?
a. All India industry level.
b. Regional level.
c. Company level.
d. Unit/Plant level.
e. Any other (please specify).
10%
20%
30% 30%
10%
0%
5%
10%
15%
20%
25%
30%
35%
All Indiaindustry level
Regional level Companylevel
Unit/Plantlevel
Any other
SUGGESTION
1. Most employees are belong to village & backward area so organized the meeting to aware the profit & loss organization which employee are understand the organization's his profit & loss.
2. When employee is an absent without information then give punishment.
3. Provide leave which employee are not absent in the duty.
4. Provide better working condition which employee are work in properly in the organization.
Which employee are regular present in the duty so provide rewards, promotion & other benefits, so absent employee are attract him.
Limitations of the studyDuring the whole project, I faced certain limitations which are as a follows~
1. Most of the workers were interviewed at work spot.
2. The time duration allowed to the researchers is only one month. Due to short span of time, the researcher was unable to conduct an extensive study.
3. The respondents always had a feeling that the researcher is sent by the management, they refused to answer first. So it was very difficult to the researcher to convince and get answer from them.
4. Some respondents were not frank and original enough to provide adequate answer to me, but any how this problem was overcome by means. I rejected incomplete, invalid and dull answered questionnaire and took into account only genuine and clearly answered questionnaire.
5. In the questionnaire neither the opened question nor the descriptive question were enforced because the employee were not cable of answering as well as enough time to think of those. Hence the questionnaire had to be restricted to be multiple choice and dichotomous, rating and ranking question only.
6. Looking towards time and cost constrain, only walk-in employees are interviewed during the survey.
7. The research could take only a small sample sampling size of 50 for the study. But for understanding the satisfaction levels of employees, this sample size is enough looking towards time constrain and cost.
ConclusionThere has been a great deal of effort put into defining the different classes in
the India. One of the most popular ways by which the country tries to make this distinction is based upon the salary information that it collects each year. The idea is that with this salary information, there can be conclusions reached as to what exactly is lower class, middle class, and the upper class. Then by further dissecting the salary and wage information, there will be an attempt to see who falls within these class brackets. To date, the salary information that has been collected, has arguably allowed the upper class, as well as the lower class groups to be defined, but based on the salary information that has been tabulated, it is often quite difficult to reach an agreement as to who the middle class are. There are so many instances in which the salary and wage information of the country have been studied, but there is no solid conclusion that is agreed upon. The salary and wage information shows such a gap between those that are considered to be of the lower and upper income raising bracket, that is hard to decipher what the middle class is, based on the salary information that is reviewed.
The salary and wage information that has been tabulated has indicated what is considered to be legally impoverished in the India. The salary and wage information shows that those that are considered to be legally poor have an average income of about $15,400.00 The salary and wage information shows that for the one person household earning an income of $10,000 or less, the household is considered to be impoverished. The salary and wage information indicates that for a two person household, an income of $13,000 or less, is deemed impoverished. The salary and wage information states that if a three person household receives an income of $16,000 or less, they are considered to be impoverished. The salary and wage information also indicates that for a household of four that has an income of $21,000 or less, they are considered to be impoverished.
The salary information has made its attempt at creating a class income grouping for those that are believed to fall within the middle class. The salary information considers the middle class to be anywhere from $25,000 to $100,000. Due to the large gap in the findings of the salary information, there are some that have taken on their own opinions as to what is considered to be middle class, based on the figures that have been drawn. The salary and wage information also made its reporting on those that are considered to be in the upper tier of the economic food chain. The salary information has indicated an average figure for those that are deemed to fall within this rank is more than $101,000, on average
BIBLIOGRAPHY
S.NO. BOOK NAME. WRITER NAME.
1. PERSONNEL MANAGEMENT C.B MAMORIA.
2. HUMAN RESOURCE DEVELOPMENT P.C. TRIPATHI.
3. HUMAN RESOURCE MANAGEMENT L.M.PRASAD.
4. PERSONNEL MANAGEMENT C S VENKATA
AND HUMAN RESOURCES RATNAM & B K SRIVASTAVA.
5. RESEARCH METHODOLOGY DR. K.G.C.NAIR
Website : www.google.com
www.jalindia.co.in
www.wikipedia.com
QUESTIONNAIREQuestionnaire about “wage and salary administration”
Name (optional)……………………., Address ……………………….............1. What is your Gross salary? a. Below 2 lakh b. 2 lakh to 4 lakh. c. 4 lakh to 6 lakh. d. Above 6 lakh.2. What is the best aspect of your job?a. Good package. b. Good profile. c. Conducive working environment.3. What according to you is the best way to Appreciate your job?a. Promotions. b. Increments. c. Public Acclamations. d. Employee Rewards.4. How satisfied are you with the wage/salary administration cell in your organization?a. Very satisfied b. Satisfied c. Not satisfied.5. Who, out of the following is involved in the process of formulating/revising your pay structure?
a. Employee of your organization.b. Personal department.c. Finance Department.d. Compensation surveys conducted by professional Organization.e. Management consultant.f. Any other (please specify)…………………
6. Are you satisfied with the pay structure of the employees in terms of those of other comparable organization? a. Very satisfied b. satisfied c. Not satisfied.7. Do you want improvement in your company’s pay structure. Yes/No If yes, in what form-a. Time span of received b. Amount received less than expected.c. Mode of payment. d. If any other, specify……………
8. If your company does not improve its pay & incentive policies, would You like to change your organization?
a. Yes b. No9. At what level wage negotiation/revision take place in your company?a. All India industry level. b. Regional level.c. Company level. d. Unit/Plant level.e. Any other (please specify).
ACKNOWLEDGEMENT
I would like to take this golden opportunity to express deep sense of
gratitude indebtedness to the management of ‘JAYPRAKASH ASSOCIATES
LIMITED’ for providing me opportunity to undergo practical training in their
esteemed organization for 4 weeks. I express my sincere gratitude toward Mr.
A.K. Nandi (GM – TTG) for providing me all necessary support to undergo
this project work.
I express my heartfelt gratitude to Mr. Mrityunjay Kumar, (personnel
Officer) Jaypee Sidhi Cement Plant Baghwar, who was always willing to help.
Without her ideas & timely suggestion this report would never have reached its
destination.
I take opportunity to place on record my grateful thanks to my HOD Dr.
Rajeev Dubey and sincere gratitude to Dr. Atul Pandey Prof-in-charge of
DBA, A.P.S. University Rewa who gave me valuable advice and inputs for my
study. My study could not have been completed if I had not been able to get the
reference material from the respondents
Rupesh Agrawal MBA III Semester
Department of Business Administration
A.P.S. University Rewa (M.P.)
As a student of MBA ((HR)), I got this opportunity to under go my
training in Jaypee Sidhi Cement Plant Baghwar, as a part of completion of this
training, I have to prepare a project report on study of WAGE & SALARY
ADMINISTRATION in Jaypee Sidhi Cement Plant Baghwar Sidhi (M.P.)
The complete project gradually starts from Jaiprakash Associate Limited
and at the recommendation and suggestion made by analyzing the data
collected from primary and secondary sources.
I have made an effort to give a brief Introduction of Jaiprakash Associate
Limited, next in sequence, I have given and Idea about the wage & salary and
tried to make it clear with the help of chart and different graphs.
DECLARATION
Myself Rupesh Agrawal, a student of MBA (HR) DBA, A.P.S. University
Rewa (M.P.), hereby declare that this Project Report “WAGE AND SALARY
ADMINISTRATION” at Personnel and administration, A Unit of Jaiprakash
Associates Limited is my original work based upon observations, study and
analysis at Personnel and administration, Jaypee Sidhi Cement Plant and not
taken or copied from any other source.
Rupesh Agrawal MBA (HR) II Semester
DBA, A.P.S. University Rewa (M.P.)
CONTENTS
Chapter No. Particular Page No.
Chapter – 1 Introduction of the Topic 1-20
Chapter – 2 Company Profile 21-30
Chapter – 3 Research Methodology 31-43
Chapter -4 Data Analysis 44-52
Chapter – 5 Conclusion & Suggestion
Bibliography
Questionnaire
53-55
56-57
