Chapter-1

INTRODUCTION
Wages, payment received by an employee in exchange for labor. It may be in goods or services but is customarily in money. The term in a broad sense refers to what is received in any way for labor, but wages usually refer to payments to workers who are paid by the hour, in contrast to a salary, which implies a more fixed and permanent form of income (e.g., payment by the month rather than by the hour). In economic theory, wages reckoned in money are called nominal wages, as distinguished from real wages, i.e., the amount of goods and services that the money will buy. Real wages depend on the price level, as well as on the nominal or money wages. wages, payment received by an employee in exchange for labor. It may be in goods or services but is customarily in money. In economic theory, wages reckoned in money are called nominal wages, as distinguished from real wages, i.e., the amount of goods and services that the money will buy. Real wages depend on the price level, as well as on the nominal or money wages. wages, payment received by an employee in exchange for labor. It may be in goods or services but is customarily in money. The term in a broad sense refers to what is received in any way for labor, but wages usually refer to payments to workers who are paid by the hour, in contrast to a salary, which implies a more fixed and permanent form of income (e.g., payment by the month rather than by the hour). In economic theory, wages reckoned in money are called nominal wages, as distinguished from real wages, i.e., the amount of goods and services that the money will buy.Thus Real wages depend on the price level, as well as on the nominal or money wages.

Economic Theories about Wages

Many theories have been advanced to explain the nature of wages. The first of them was the subsistence theory of wages, also called the iron law of wages, of which David Ricardo was one of the main exponents. The theory maintains that wages cluster around the bare subsistence level of workers. A wage rate much above the subsistence level causes an increase in the number of workers; competition will then lead to a depression of wages back toward the cost of subsistence. Wages that are below subsistence reduce the size of the working population; in that case competition will raise wages, but only up to the subsistence level again. In the surplus-value theory as propounded by Karl Marx, the value produced by the worker in excess of what is paid in wages is called surplus value. The surplus value, exacted from the worker, constitutes the capitalist's profit. The wage-fund theory is that wages are advanced out of a fixed fund of capital, from which an excess withdrawal, either through legislation or through union pressure, will ultimately reduce the amount available for other workers. Any increase in wages would also have to be taken out of profits, and their reduction would cause a decline in savings. The marginal-productivity theory maintains that employers will only pay a wage that is, at most, equal to the amount of extra value added to the total product by one additional worker. The bargaining theory modifies the marginal-productivity theory by taking into consideration other factors (e.g., laws and social and political changes) that might affect the determination of

wage levels and by acknowledging that certain basic assumptions (equal bargaining power of employer and employee, free competition ).

CONCEPT OF WAGE PAYMENT

Wages in the widest sense mean any economic paid by the employer under some contract to his workers for the services rendered by them. Wages therefore include family allowance, relief pay ,financial support and other benefits. But in the narrow sense, wages are the price paid for the services of labour in the process of production and include only the performance wages or wages proper. Under the payment of Wages Act 1936, Section 2 (VI), any award of the settlement and production bonus, and good conduct bonus. But under the payment of Wages Act, 1948, retrenchment compensation, payment in lieu of notice and gravity payable on discharge constitute wages. The following type of remuneration, if paid does not amount to wages under any of the Acts: Bonus or other payment under a profit sharing scheme which do not form a part of the contract of employment. Value of any house accommodation, supply of light, water, medical attendance, travelling allowance, or payment in lieu there of on any other concession. Any sum paid to defray special expenses. Any contribution to pension, provident fund Any other amenity or service excluded from wages.

CONCEPT OF WAGES
RULES, 1937
1. Short titleThese rules may be called the Payment of wages (Producer) Rules, 1937

2. Definitions - In these rules, unless there is anything repayment in the

subject or context, (a) The Act means the payment of wages Act (4 of 1936) (b) Appeal means an appeal under Section 17; (c) The Authority means the authority appointed under Sub-Section (1) of Section 15 (d) Employer includes the persons responsible for the payment of wages under section 3; The basic purpose of wage administration is to establish and maintains an equitable wage structures. Its secondary objective is the establishment and maintenance of an equitable labours cost structure i.e. an optional balancing of conflicting personal interest so that the satisfaction of employees and employers is maximized and conflicts minimized.

OBJECTIVES OF WAGE PAYMENT: a) For Employees.

To pay the employees according to their job requirements. To minimize the chances of favoritism. To establish job sequences and lines of promotions wherever they are applicable. To increase the employees morale and motivation.
6

b) For Employers:
To systematically plan for and control their labour costs. To deal with a trade union, by explain the basis of their wage programme. To reduce the likelihood of friction and grievances over wage inequities. To attracts qualified employees by ensuring an adequate payment for all the jobs.

THEORY OF WAGES
Different methods of wage payment are prevalent indifferent industries and various countries. There may be payment by time or payment by results. Wages are fixed mainly as a result of individual bargaining, collective bargaining or by public or State regulation. The main elements in these theories may be summed up as follows.

Subsistence Theory
This theory also known as Iron law of Wages was propounded by David Ricardo (1772-1823). This theory states (1817) that The labourers are paid to enable then to subsist and per perpetuate the race without increase or diminution.

Wage fund theory

This theory was developed by Adam Smith (1723-1790). His basic assumption was that wages are paid out of a pre-determined fund of wealth which lay surplus with wealthy persons as a result of savings.

The Surplus Value Theory of Wages:

This theory owes its development of "Karl Marx" (1849-1883). According to this theory the labour was an article of commerce, which could be purchased on payment of subsistence price'. The price of any product was determined by the labour time needed for producing it.

Residual Claimant Theory

Francis A Walker (1840-1897) propounded this theory, According to him, there were four factor of production / business activity, viz., land, labour, capital and entrepreneurship, In other words, labour is the residual claimant.

Marginal productivity theory

This theory was developed by Phillips theory Wicksteed (England) and John Bates Clark (USA). According to this theory, wages are based upon the entrepreneurs estimate of the value that will probably be produced by the last or marginal workers.

The Bargaining Theory of Wages

John Davidson propounded this theory. Under this theory, wages are determined by the relative bargaining power of workers or trade unions and of employees.

Behavioural Theories
Many behavioral scientists-notably industrial psychologist and sociologist like Marsh and Simon, Robert Dubin have presented their views or wages and salaries, on the basis of research studies and action programmes conducted by them. Briefly such theories are. The Employees Acceptance of a wage level The Internal wage structure
8

 Wages and Salaries and Motivators.

MINIMUM, FAIR AND LIVING WAGE

Statutory Minimum Wages

It is the wage determined according to the procedure prescribed by the relevant provisions of the Minimum Wages Act, 1948. Once the rates of such wages are fixed, it is the obligation of the employees to pay them, regardless of his ability to pay.

Bare or Basic Minimum Wages

It is the wage which is to be fixed in accordance with the awards and judicial pronouncement of Industrial Tribunals, National Tribunals and labour Courts.

A minimum wage has been defined by the committee as

the wage which must provide not only for the bare sustenance of life, but for the preservation of the efficiency of the worker. For this purpose, the minimum wage must provide for some measure of medical requirement, education and amenities.

Living wage
This wage was recommended by the committee as a fair wage and as ultimate goal in a wage policy. It defined a living wage as," one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against ill-health, requirements of essential social needs and a measure of insurance against the more important misfortunes, including old age

Fair Wage:According to the Committee on fair Wages, it is the wage which is above the minimum wage but below the living wage. The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the "capacity of the industry to pay. Between these two limits, the actual wages should depend on consideration of such factors as:(a) The productivity of labour ; (b) The prevailing rates of wages in the same or neighboring localities (c) The level of the national income (d) The place of industry in the economy of the country.

LIVING FAIR MINIMU

WAGE RATE

10

TYPES OF WAGES
Time Wage:This is the oldest and the most common method of fixing wages. Under this system, workers are paid according to the work done during a certain period of time, at the rate per hour, per day, per week, per fortnight or per month or any other fixed period of time. The essential point is that the production of worker is not taken into consideration in fixing the wages; he is paid at the settled rate as soon as the time contracted for is spent.

Piece Wage
Under this system, workers are paid according to the amount of work done or the number of units completed, the rate of each unit being settled in advance, irrespective of the time taken to do the task. This does not mean that a worker can take any time to complete a job because if his performance far exceeds the time, which his employer expects, he would take the overhead charge for each unit of article, will increase. There is implication that a worker should not take more than the average time.

Balance or Debt Method:

This is a combination of time and piece rates, the worker are guaranteed an hourly or a day-rate with an alternative piece rate. If the earnings of the worker calculated at a piece rate, exceeds the amount which he would have earned if paid on time basis, he gets credit for the balance i.e., the excess piece rate earnings over the time rate earnings. If his piece rate earnings are equal to his time rate earnings, the question of excess payment does not arise. Where piece rate earnings are less than time rate
11

earnings, he is paid on the basis of the time rate; but the excess which he paid is carried forward as a debt against him to be recovered from any future balance of piece work earnings over time work earning.

Wage differentials
Wages differ in different employments or occupations, industries and localities and also between person in the same employment or grade. One therefore comes across such term as occupational have been classified into three categories: First the differentials that can be attributed to imperfections in the employment markets, such as the limited knowledge of work in regard to alternative job opportunities available elsewhere. Second, the wage differentials, which originate in social values and prejudices and which, are deeper and more persistent than economic factors. Third, occupational wage differentials which would exist even if employment market were perfect and social prejudices were absent. In other words, wage differentials may be (i) (ii) (iii) (iv) (v) Occupational differentials Inter firm differentials Inter area or regional differentials. Inter-industry differentials ; and Differentials based on Sex.

12

INGREDIENTS OF A GOOD WAGE PLAIN

It should be easily understandable It should be capable to easy computation It should be capable of effectively motivating the employees. It should provide for remuneration to employees. It should be relatively stable. It should be step of sound wage administration polices. There should be scientific system for fixing standard work load. Workers should participate in the management. There should be guarantee of minimum wage payment to every worker per month.

13

An incentive can be anything that attracts a workers attention and stimulate him to work. It is a plan used to encourage workers for raising their performance and incentives are provided for increase in production beyond a certain level, completing a work in less time then normally allowed, improving quality products etc these plans verified both employees and employers. The formal gets more wages and the latter are successful in reducing overhead cost per unit of output. Salient or essential features of incentive schemes Following are the salient features to be understood in any incentive schemes: 1. 2. 3. 4. 5. 6. 7. It should be easily understood and the amount of benefits should be really assessed. It must benefit employees as well as employers. It must have relation between the benefits to the employees in relation to their efforts. It should not be too costly to adopt to operate it should stimulate the interest among employee. It should stimulate the cooperation among the employees. It should not be detrimental to the welfare of employees. It should assist in supervision.

CONCEPT OF INCENTIVE SCHEMES

DEFINITION OF INCENTIVE SCHEMES:

14

 An incentive scheme is a plan or a programme to motivate individual or group performance. An incentive programme is most frequently build on monetary rewards but may also include a variety of non-monetary awards or prizes. BURACK SMITH Wage incentive scheme refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job HUMMEL

OBJECTIVES OF WAGE INCENTIVE SCHEMES:

To improve the profit of a firm through a reduction in the unit cost of labour and materials or both To avoid additional capital invest for the expansion of production capacity. To increase a workers earnings without dragging the film into a higher wage rate structure regardless of productivity. To use wage incentive as a useful tool for securing a better utilization of manpower, better production scheduling and performance control and a more effective personnel policy.

Incentive schemes
Incentives are the stimulus mainly of two types: Financial incentives Non-financial incentives mainly psychological and it maintains and strengthens the desire to achieve improved performance. Incentives are

15

Financial incentives helps the individuals to meet their basic needs and non-financial incentives assist in meeting the higher order needs such as social needs, ego needs and self actualization needs. Non-financial incentives are based on sociological and psychological to principles of higher behaviour.

FINANCIAL INCENTIVES:
These incentives are payments for improved productivity attendance and general improvement in employees performance. These schemes can be direct or indirect in nature. In direct financial incentive scheme, The payments are based on employees own performance or contribution to the job such as production incentive schemes , attendance bonus, profit sharing bonus etc. The case of indirect financial incentives schemes, the payments are not directly related to employees contribution & schemes are like subsidized means such as leave enactment, gratuity scheme, leave concession scheme, canteen facilities at subsidies rates.

OBJECTIVES
Following are the objectives for which incentive schemes can be used: a) To increase the production, productivity yields manpower utilization earning of the employee sales and quality. b) To improve quality, reduced inventory and reduced wastage.

ADVANTAGES
Following are the various advantages of financial incentives: 1. Achievement of higher production.
16

2. 3. 4. 5. 6.

Lesser breakdown and defective work. Cutting down the cost of production. Opportunity for higher earnings to employees. Reducing the supervision time. Effective use of manpower planning.

DISADVANTAGES
The incentive schemes are not free from disadvantages. following are the disadvantages of incentive schemes: 1) Lack of consistency 2) Psychological problems in the incentive systems. 3) Delay in the payment of schemes.

NON FINANCIAL INCENTIVES

These are generally introduced as a normal practice in good management. These elicit from employees sense of belongings and their importance is not to be underestimated. The non-financial incentives touch the inner feelings of employees and brings out a response much more impressive than could be possible through financial incentives which are outcome of enlightened management. The provision of better working conditions, encouragement and appreciation of good work and atmosphere of willingness and cooperation in dealing with common problems are all those contributed to excellence in financial incentives schemes and the acceptance of workmen bring a radical change in industrial relations management often is faced with a challenge when they introduce incentive schemes. for the incentives schemes to be effective, management must insure that they will be able to
17

do good to the management and the workers alike one of the studies carried out in a public undertaking revealed that after 4-5 months of introduction of schemes; following results are achieved Increase in production 20% Increase in productivity 15% Reduction in rate of accidents 60% In addition to above, there was improvement in attendance in morale, willingness to work and enforcement for increasing production. We have seen that incentives plans provide for higher reward for increased output. The main objective is to increase the production by giving an inducement to workers in form of higher wages. An effective incentive plan must provide for minimum guaranteed wages. Some of the non-financial incentives are: Welfare measures Social and sports activities Educational opportunities Suggestion schemes Meritorious service awards Sound performance appraisals Promotional policies Better working conditions Creation of healthy organizational plan ing and development Knowledge of results growth opportunities in the organization

18

 Recognition

19

Chapter-2

20

COMPANY PROFILE
BACKGROUND: Born in the year 1984,THE HIND SAMACHAR A FLEDGING NEWSPAPER has empowered into THE HIND SAMACHAR GROUP OF NEWS PAPER. At present it encompasses Punjab Kesari in Hindi,Jag Bani in Punjabi and Hind Samachar in Urdu being publishedfrom 3 centresJalandhar,Ambala and Deli . It reaches out to a total of a lacs plus readership families daily. Punjab Kesri alone touches the lives of 13 lakh families making it the top selling Sunday Newspaper. HISTORY AND EXISTANCE : The journey of the eteemed daily begins when thefouner person LATE LALA JAGAT NARAIN gave in dependent India what he termed AN INDEPENDENT NEWSPAPER He was born on 31st may 1899,he was ofgreat imaginative mind and deep love for his country since childhood. Lala Ji was sent to jail first time in 1921,wherehe metLala Lajpat Rai. In 1924 when Lala Ji was released from jail,he met Bhai Parmand who was very famos writer and politician of that time. Bhai Parmand saw an aspairing jorurnalist in Lala Jagat Narian , therefore he appointed as the editorofhis newspaper Akash vani on coming back to jalandhar Lala Ji started his Newspaper Jai Hind. He write an articlein his newspaper explining the misery of theses refges to attracteverybodys attention . As the Govt. and stop thepublication of Akash Vani
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In 1948 he publishes his own urdu newspaper HIND SAMACHAR and once again started publishing his articles on the misary offugitives very freely and openly. He led the Hind Samachar from the front and it was under his wings that the foundation of growth was laid. For standing firm to his ides he was shot dead by terrorists on sept,1981 on G.T Road near Ludhiana THE SECOND CHIEF: Following the assassination of Lala Jagat Narian his older son Sh.Ramesh Chander took hold of the company as Chief Editor . He was born on Dec 24,1926 at Lyallpur. Hegot hisBechelor of Sciene degree from DAV College,Lahore.His journey in the world of journalism began in 1952.He was elecedmember of Jalandhar Muncipal Committee in 1955. Following the footprints of father ,he, at every available opportunity, sought to promote the communal harmony and national integration .While returning after addressing his last meetingofcomunal harmony , he was shot dead by terrorist on May 12 ,1984 . THE PRESENT INCUMBENT : The only person assumed responsibilityas the Chairman and Managing Director of the company after the dealth of Ramesh Chopra was noneelse but his younger brother , Sh. Vijay Kumar Chopra- The present Chief. Hewasborn on 31st January1932 andgarduated from D.A.VCollege

22

Jalandhar with Thompson Foundation Newspaper Management Course from U.K Today ,under his leadership the Group has grown into thirdlargest newspaper concern in the country. He was honouredwith PadamShree Awardfor his distinguishable achievements in fighting terrorism with the mode ofhis newspaper in 1980. OBJECTIVES OF HIND SAMACHAR LTD. : Comingtogether in the beginning , keeping is progress ,working together is success. The pioneer of Hind Samachar, Lala Ji wanted it to be an independent newpaper. A medium that is free to criticize , appraise and appraise the public of happenings and events. Thus ,independence ofexpressing ideas,being the primary objective of the concern , it aims the following : 1. Providing first hand information related to various happenings worldwide within minimum time span. 2. 3. Always basedqualit beforeprofits. Reliable and Accurate knowledge of the news astray from the misleading rumours . 4. Serving a healthy medium of entertainment , to quench the need for knowledge of current affairs.
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5.

Providing the best source of advertisement among thepresent medias by presenting the messagein most attractive way

6.

Providing a common platform for every communityto independently express andcritize theindividual view.

7.

To spread the Hind Samachargroup to every possible concern of the nationmaking it thehighestselling newspaper in both rural and urban regions.

24

25

Chapter-3

26

RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the

research problem. The Research Methodology includes the various methods and techniques for conducting a Research. Marketing Research is the systematic design, collection, analysis and reporting of data and finding relevant solution to a specific marketing situation or problem. D. Slesinger and M.Stephenson in the encyclopedia of Social Sciences define Research as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. The purpose of Research is to discover answers to the Questions through the application of scientific procedures. Our project has a specified framework for collecting data in an effective manner. Such framework is called Research Design. The research process followed by us consists of following steps: o Developing the research plan: The second stage of this study consists of developing the most efficient plan for gathering the relevant data. The method for carrying out study is followed: Sampling Plan Sampling can be defined as the section of some part of an aggregate or totality on the basis of which judgment or an inference about aggregate or totality is made. The sampling plan helps in decision making in the following areas: 27

Sample size Sample size refers to the total numbers of items about which the information is desired. The sample size of the study is 50.

Source Of Data
For the accomplishment of the required research paper, following methodology was used: -

Data Collection
Both primary as well as secondary data was collected for the survey. The primary data was collected through questionnaire (consisting of multiple choice answers) and personal interview. This seems to be costliest method but it is very accurate. The secondary data was collected from organisations report, brochures catalogues etc. Other Xerox notes were collected from the respective heads. The copy of the questionnaire has been attached in the end.

Data Presentation
To present data in an understandable way, different types of chart, graphs and tables are used.

Period of study
The study has been taken under 6 weeks ( i.e 10 th June 2008 to 14th July 2008 )

28

LIMITATIONS OF THE STUDY

Every study has some limitation. Their survey is accompanied by the following limitations. 1. Communication gap Sometimes, there was a language problem

with the workers. The workers were made to understand the question but some times they interpret the question wrongly and gave wrong replies to the queries. 2. Indifferent Attitude: few of the workers react to the study indifferent and do not provide any satisfactory answers.

3. Biased information Though every care has been taken to eliminate sort of bias but considering the human factors the possibility of small bias having coming up cant be ruled out.

29

Chapter-4

30

WAGE PAYMENT IN HIND SAMACHAR

As we already studied much about wages, its meaning, concept and its types. There is mainly one method of wage payment i.e. Time rate. HIND SAMACHAR is adopting time rate method in concern. It is very big and a reputed company. They pay wages to their workers on the basis of time they work.

I.

INCREASE IN MINIMUM RATES OF WAGES

The neutralization of minimum rate of wages is @ Rs. 5/- per point in the case of monthly rated workman and 19 paisa per point in the case of daily rates workman. Accordingly there is an increase of Rs. 35.00 in the minimum rates of wages for every category of employees on monthly rate basis. In case of daily rated workers there is an increase of Rs. 1.33 per day.

31

32

WAGES PAID UNDER TIME RATE IN HIND SAMACHAR

Basic Salary Rs. 3530.0 0 3400.0 0 3575.0 Rs. 200.00 100.00 Rs. 50.00 0.00 100.00 0.00 1000.00 Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 1.50 0.00 6.00 Rs. 28.00 30.00 30.00 30.00 30.00 Rs. 3127.0 0 3400.0 0 3575.0 0 4800.0 0 75.00 H.R.A L.C.A W.A. Leave Day Amou nt Total Amt. Rs. 3360.00 3500.00 3875.00 6100.00 9550.00 E.S.I. (1.74) Rs. 3360.00 3500.00 3875.00 6100.00 9550.00 E.P.F. (3.67) Rs. 375.00 400.00 429.00 576.00 900.00 P.F. (12% ) Rs. 115.0 0 125.0 0 131.0 0 176.0 0 900.0 0 Rs. 260.00 283.00 298.00 Rs. 50.80 61.25 67.85 F.P.F. E.S.I. Income Tax Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 0.00 0.00 0.00 Rs. 0.00 0.00 0.00 0.00 0.00 ADV Ration CoMess Other Deduction Total Rs. 433.00 469.25

Net Payable Rs. 2926.20 3030.75

a) b) (c) d) (e)

200.00 0 4800.0 1300.0 0 0 7500.0 1050.0 0 0

49683.00 3378.15 6825.75 900.00

400.00 106.75 0.00 0.00

5417.25 8650.00

P.F. Stand for Provider Fund H.R.A. Stand for House rents allowance L.C.A Stand for Local conveyance allowance W.A. Stand for washing allowance M.A... Stand for Medical allowance P.A. Stand for Petrol allowance T.A. Stand for travelling allowance E.S.I. Stand for Employees State Insurance Corporation. F.P.F. Stand for family pension fund. Bonus has been payable on salary is 20% p.a Provident fund on basic salary is 12 % p.a.

33

II Minimum rates of wages according to Act.

The rise in the minimum rates of wages is effective from 1-3-2006 Categories As on 1-09-2005 1. Unskilled 2. Semi Skilled Rs. 2225 2440.65 Monthly wages As on 1-03-2006 Rs. 2260 2475.65 2376.25 2536.25 2715.65 2575.05 Daily wages As on 1-03-2006 Rs. 86.83 95.18 91.28 97.42 104.33 98.93

i.e. Upper 3. Semi Skilled i.e 2341.25 Lower 4. Skilled i.e Lower 5. Skilled i.e Upper 6. Clerk, Time keeper, Sales man, Conductor, Store keeper etc. 7. Accountant / Graduate Clerk, Assistant, Supervisor, Car driver , Cashier, Steno typist 8. Truck / Bus / 2959.35 2661.25 2501.25 2680.65 2540.05

2696.25

102.58

2994.35

115.03

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III DEDUCTION MADE IN WAGES

With regard to the rules of Government and for the benefits of the workers, HIND SAMACHAR deducts a some part of the income from the wages of workers. The worker receives net wages after these deductions have been made. These deductions are: -

1)

The Employees State Insurance Act: - According to the Act

passed in 1948, it a compulsory and contributors health insurance scheme. The financial contributions of the scheme are the insured persons themselves, employees and the State Govt. also. The employees pay 1.754 % of their monthly wages and the employers rate of contribution is 4 % of the total wage bill. The act covers all the employees whose monthly wages does not exceed Rs. 6500. The scheme provides following benefits to insured and his family. Sickness benefit Medical benefit Dependents benefit Disablement benefit Funeral benefit

2. The Employees Provident fund Act, 1952:Retirement benefits in the form of provident fund family pension are available to employer under this Act. The scheme is applicable to these drawing wages up to Rs. 5000 per month. Under HIND SAMACHAR . The employees contribute 12 % of the basic way (3.67% + 8.33 %) (Provident fund + pension) The employee get provident fund after his retirement.

35

3). Advance - Sometimes the workers need the certain amount, so there
is provision that they can withdraw upto certain sum of amount. Then this amount will be deducted from the gross wages of the workers.

4) Life Insurance Scheme: - For the purpose of mediclaim policies or

other benefits deductions are made with the written authorization of Life Insurance policy to the Life Insurance Corporation

5. Fixed Conveyance allowed paid to employees Not under the ESI ACT
The court held that labour charge for construction of building would constitute of building 25 % of the total cost and the employer was liable to make contribution at such amount, under the case of Regional Director ESI Madras v/s Sundram Clayton Ltd. Moppet Dwisioen Madras.

The wage ceiling for motivation employees under ESI ACT 1948.
With affect from 1st April 2005 the wage ceiling for motivation of employees under the employee's State Insurance Act, 1948, has been enhanced from Rs. 6500 /- to Rs. 7500 /-. This is the virtue of another amendment of Rule 52 of ESI (Central) Rules contribution will be not deducted from employees daily wages. Earlier this limit was Rs. 40/- of less per day.

CHANGE IN CONDITION OF SERVICE

Statutory requirement of notice under section 9-A of Industrial dispute Act 1947.

36

Whenever an employer is required to effect change in the conditions of the service of an employee. He is statutory required to give notice of 21 days to the effected workman. The provision of 9-A will not be attracted if the proposed change does not relate to any of the matter provided in schedule IV.

IV Influencing wage determination factors at AMBIKA OVERSEAS

There are many factors which influence the wage determination. The influence of these factors can also be seen in "HIND SAMACHAR". These factors affect the wage system of the organisation. These are as under:

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CRITERIA FOR WAGE FIXATION

Job Requirement Ability to Pay Qualification Past Experience Minimum wages as for Govt. Laws. Managerial Attitude on higher Post

The organization gives greater weight to following wage criteria i.e. (a) Job requirement (b) Minimum wages as per government laws. While other factors such as qualification, past experience, ability to pay and managerial attitude are accorded a secondary importance.

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V BENEFIT PROVIDED TO WORKERS IN HIND SAMACHAR

Hind Samachar supplies some benefits to its workers in order to retain the people in organization and not to stimulate them to greater effort and higher performance. The benefits are: -

1. Medical benefit: - It is in the form of free medical treatment in case of sickness and injury. There is a dispensary inside the concern. The concern also provides mediclaim to the workers to some extend. 2. Canteen: - The workers can avail the refreshment or can eat meals bought by them from canteen at concessional rates. The concern provides this benefit in order to give good working conditions to employees. 3. Dress: - There is a proper dress code of AMBIKA OVERSEAS There are both blue collar and while collar workers exist. 4. Bonus :- The company provide 20% bonus on the basic salary annually

VI LEAVE SYSTEM IN HIND SAMACHAR

Under leaves system adopted in HIND SAMACHAR, they determine how much total leaves can be available by the worker. The total number of leaves provided in HIND SAMACHAR is 33 Earned Leaves 39

30

National Total

13 33

Earned leaves: - These leaves are given to those workers who have
worked for not than 1 year in company and the workers must have worked for 240 days in concern, only then they can avail these 30 leaves under HIND SAMACHAR

Leaves without Pay: - If a worker avail a leave which is not covered

under above two cases then he will not get wages on that day i.e. the wages for that particular day will be deducted from his gross wages.

VII SYSTEM OF CALCULATION OF OVERTIME IN HIND SAMACHAR

Overtime is paid to workers on the following basis: a) If the worker works more than the normal working hours like in the day holdings, then:

Overtime = Salary /240 days * hours (per day) (240 minutes in 4 hours)
b) Workers can be called for work for a minimum period of 4 years to work overtime on paid holidays and closed days. c) Overtime (Per Month) = Overtime x 2

40

Chapter-5

41

DATA ANALYSIS AND ITS INTERPRETATION

AMBIKA OVERSEAS is a big concern. There are many workers working under it. A survey has been conducted during summer training to know the response of workers towards the management and the concern. The data analysis on basis of questionnaire filled by workers is given as below. The survey is conducted on 30 workers.

JOB SATISFACTION LEVEL Table 1.1 Ranks

Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total

%age
16 26 22 20 12 4 100

No. of workers
8 13 11 10 6 2 50

12%

4%

16%

Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

20%

26%

22%

Fig 1.1
INTERPRETATION

42

As seen above 42 workers in the organization at large have a job satisfaction level & there are only 8 workers who are not satisfied or indifferent.

P AY STRUCTURE
Table 1.2 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 10 16 16 24 30 4 100 No . of workers 5 8 8 12 15 2 50

4% 30%

10% 16% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

16% 24%

Fig. 1.2
INTERPRETATION

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As seen above 33 workers in the organization are very happy or satisfied with the pay structure & there are only 17 workers who are not satisfied with the pay structure.

ANNUAL INCREMENTS
Table 1.3 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 10 30 36 8 16 0 100 No of workers 5 15 18 4 8 0 50

16% 8%

0% 10% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

30%

36%

Fig. 1.3
INTERPRETATION It is clear from the aforesaid fig. that 42 workers annual increment seems to be excellent and satisfactory and only 8 workers who are not satisfied.

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TIMELY PAYMENTS
Table 1.4 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 88 10 2 0 0 0 100 No of workers 44 5 1 0 0 0 50

2% 10% 0% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent 88%

Fig. 1.4 INTERPRETATION From the above we can see that 44workers agreed that timely wages are excellent, 5 very good & 1 good .It has never been late even for a single day, half day or hour.

PAYMENT OF ADVANCE

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Table 1.5 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 10 16 16 24 30 4 100 No of workers 5 8 8 12 15 2 50

4% 30%

10% 16% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

16% 24%

Fig. 1.5
INTERPRETATION From the aforesaid data it is clear that 33 workers agreed that whenever they need advance they dont have to face any problem and only 17 of them are not satisfied.

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RECOGNITION OF GOOD WORK

Table 1.6 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 12 4 20 24 34 6 100 No of workers 6 2 10 12 17 3 50

6%

12% 4% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

34%

20%

24%

Fig. 1.6
INTERPRETATION From the aforesaid information it can be seen that 6 workers are very happy with the recognition given to their good efforts, 12 workers are satisfied while 17 workers are totally unsatisfied with.

REWARDS FOR EFFICIENCY

Table 1.7 Ranks %age No of workers

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Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total

8 26 18 16 24 8 100

4 13 9 8 12 4 50

8%

8% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

24%

26%

16%

18%

Fig. 1.7 INTERPRETATION As seen from the above data 12 workers are unsatisfied, they want rewards in monetary terms or whatever but they are not getting any reward at all. However 4 workers find it very excellent and 13 workers rank it very good.

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FACILITIES ASSOCIATED WITH JOB SATISFACTION

Tabel 1.8 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 20 24 16 32 6 2 100 No of workers 10 12 8 16 3 1 50

2% 6% 20% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

32% 24% 16%

Fig. 1.8 INTERPRETATION 30 workers agreed that they are provided with good facilities associated with the job 16 workers find it satisfactory and there is 4 workers who are not satisfied with it.

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WORKING ENVIRONMENT
Table 1.9 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 18 26 18 30 8 0 100 No of workers 9 13 9 15 4 0 50

8% 0%

18%

30% 26% 18%

Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

Fig. 1.9
INTERPRETATION 13 workers said that their working environment is very good, 9 workers rank it excellent, 15 workers rank it as satisfactory and there are 4 workers who find it to be unsatisfactory.

SUPERVISORS & MANAGERS RELATIONS

Table 1.10 Ranks %age No of workers

50

Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total

44 30 14 6 6 0 100

22 15 7 3 3 0

6% 6% 14% 0% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

44%

30%

Fig. 1.10 INTERPRETATION Workers were having very good relationship with the supervisors & managers, 15 workers of them say the interpersonal relations were very good, 22 workers rank it excellent, 7 good and only 3 workers were not satisfied.

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LABOUR WELFARE ACTIVITIES

Table 1.11 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 8 8 30 26 24 4 100 No of workers 4 4 15 13 12 2 50

4% 24%

8% 8% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

30% 26%

Fig. 1.11 INTERPRETATION For the aforesaid data it is clear that 12 workers are unsatisfied with the Labour welfare activities in the organization, 2 workers are indifferent , 4 workers rank them excellent , 4 very good and 15 rank them as good.

JOB SECURITY

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Table 1.12 Ranks Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent Total %age 68 10 4 8 4 6 100 No of workers 34 5 2 4 2 3 50

6% 4% 8% 4% 10% 68% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

Fig. 1.12 INTERPRETATION It is clear from the above data that 34 workers showed excellent in job security, 5 workers rank them as very good , 2 good & 4 satisfactory & 2 are not satisfied .

HOW WORKERS RATE THE STAFF

Table 1.13 Ranks Excellent %age 14
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No of workers 7

Very Good Good Satisfactory Non-Satisfactory Indifferent Total

24 28 16 18 4 100

12 14 8 9 2 50

4% 17%

13% Excellent Very Good Good Satisfactory Non-Satisfactory Indifferent

23% 15%

28%

Fig. 1.13 INTERPRETATION It is clear from the aforesaid data that 7 workers rank the management/organizational staff as excellent. However 12 wrokers ranks staff as very good & 14 good , 8 workers rank them as satisfactory and only 9 workers are not satisfied with the organization.

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SWOT ANALYSIS OF HIND SAMACHAR

STRENGTHS
HIND SAMACHAR is reputed newspaper inwhole country They provides timely payment to their employees They provide excellent working environment. All the workers are satisfied with the job provided to them. Most of the workers are satisfied with method of wage payment adopted by the company.

WEAKNESS
Majority of workers are not well educated Pay structure does not yield more degree of motivation. They dont provide advance wages & salaries if needed by them. Workers want extra increment from the company.

OPPORTUNITIES
Workers should be provided with reward based wage system so that they are encouraged to work efficiently. The company should start bonus & premium plans

THREATS
Pay structure not adequate No extra increment No consultation with the workers regarding decision concerning them.

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Chapter-6

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FINDINGS OF THE STUDY

AMBIKA OVERSEAS is very reputed and big organisation during my training these are the findings of the company.

1.

Many steps are taken by organisation in order to motivation employee.

2. 3.

The wages paid to workers are according to the revised Govt. Polices. The grievances of workers are attended by the higher authorities but are not.

4. 5.

The salary are given to the workers in time. The company provides better facilities to workers and good working condition.

6. 7. 8.

The company give 20 % bonus to their workers. Many of the workers is not well aware of E.S.I and E.F.P. Conditions improvement program through research and Development to Human Development.

9.

Many workers are not satisfied with their wages.

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SUGGESTIONS
1. Order workers must be given preference over the youngsters as they have been working since long . 2. Nor doubt, the company pays same salary as prescribed by the government, it should give financial incentives very often to the workers in order to meet the necessities of life. 3. The workers must get sufficient wages so that they can satisfy their needs. 4. Each and every worker must be made aware of E.S.I. and E.P.F. norms. 5. 6. Workers participation should be given more importance. The Grievance handling procedures should be upgraded .

CONCLUSION
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Ambika overseas, has efficient and experienced management. It has indeed an great experience working with them. The company should work upon its opportunities so as to reduce its weakness, minimizes threats and mamize strengths of the company. It should follow certain tactics in order to motivate low-skilled service workers, providing more flexible work schedules can motivate them and filling such jobs with youngsters and retired who financial need is less unless the pay and benefits are significantly increased, high turnover has to be expected in such jobs. This can be somewhat offset by widening the recruiting net, making these jobs more appealing and raising pay level. Personnel management deals with optimum utilization human resources of a concern. It caters to the needs of the employees and fixes a suitable wage system. A wage system should be designed keeping in view the efficiency and the type of work involve. A suitable wage system satisfies the needs of workers

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60

BIBLIOGRAPH Y
Ahuja, K.K. " Personnel Management ", Published By, " Kalyani" Edition : 2003 Ashwathappa. K "Human resource and Personnel Management" Published by "Kalyani ", Edition 2003 J.Walker, Brucej Personnel Management Published by Tata McGraw Hill Kothari , C.R., Research Methodology (Method and Techniques), Wishewa Prakshan, 1999. Memoria, C.B. Personnel Management, Himalaya Publishing House Bombay, 1984. Sharma, R.K. Gupta, Shashi K. Business Management Kalyani Publishers, Delhi, 2001. Websites: www.wikipedia.com

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62

QUESTIONNAIRE
1. JOB SATISFACTION LEVEL Excellent Satisfactory 2. Very Good Non-Satisfactory Good Indifferent

PAY STRUCTURE Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

3.

ANNUAL INCREMENTS Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

4.

TIMELY PAYMENTS Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

5.

PAYMENT OF ADVANCE Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

6.

RECOGNITION OF GOOD WORK Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

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7.

REWARDS FOR EFFICIENCY Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

8.

FACILITIES ASSOCIATED WITH JOB PHYSICAL Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

9.

FACILITIES OF TECHNICAL JOB Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

10.

WORKING ENVIRONMENT Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

11.

SUPERVISORS & MANAGERS RELATIONS Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

12.

GRIEVIENCE HANDLING PROCEDURE Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

13.

LABOUR WELFARE ACTIVITIES Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

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14.

JOB SECURITY Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

15.

HOW WORKERS RATE THE STAFF Excellent Satisfactory Very Good Non-Satisfactory Good Indifferent

DEMOGRAPHIC PROFILE

Name:__________________________________ Age : A. 18-30 Years B. 30-45 Years C. 45-60 Years D. 60 and above

Qualification : ____________________________ Contact No.______________________________

THANKS FOR PARTICIPATING IN SURVEY

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ACKNOWLEGEMENT
I feel immense pleasure to give the credit of my project work not only to one individual as this work is integrated effort of all those who concerned with it. I want to owe my thanks to all those individuals who guided me to move on the track. This report entitled Wage Payment is the outcome of my summer training at Ambika Overseas, Jalandhar City.

I sincerely express my gratitude and lot of thanks to Manager and to the staff of Ambika Overseas for helping me in completing my project work and making it a great success.

I would like to express my deep sense of gratitude to my subject teacher, Mrs. _____________, Lecturer in Commerce, _________, Jalandhar who introduced me to the subject and under whose guidance I am able to complete my project.

Last but not least, I would thank all my friends, faculty members and all respondents who rendered their precious time for contributing their skills and to fill the questionnaire, which made my project more appealing and attractive.

_________________
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PREFACE
Without practical training, management education is meaningless so long with the theory; practical training is provided to management students to expose them to the actual working environment of any organization. Such training provides a framework of knowledge relating to the concepts and practices of the assigned topics in the organization.

Human beings are a resource to an organisation like any other material on economic resources they represent an investment whose development and utilization require managing. There is a fundamental truth in the clich that " people are an organisaion most important asset". In every orgnisation human resources are a pivotal variable without which the inanimate assets are worthless 'Like cash put into a saving account' Human resources can appreciate in value. Therefore, human resources need to be understood in their proper perspective and utilised effectively to achieve the goals of can organisation. The management of human resources is a very complicated and challenging task for those who are entrusted with the successful running of an organisation. Wages in the widest sense mean any economic compensation paid by the employer under some contract to his workers for the services rendered by them. Wages, therefore, include family allowance, relief pay narrow sense, wages are the price paid for the services of labour in the process of production and include only the performance wages. In this project report I have studied the deduction made from the gross wages of the workers, type of wages, factors influencing determination of wages, hand behind maintenance records benefits provided to the workers and leave system in the Co.

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CONTENTS
CHAPTER 1. INTRODUCTION TO PROJECT

Introduction to Wages Concept of Wage Payment Concept of Incentive Schemes

CHAPTER 2. COMPANY PROFILE

Company Profile Management of AMBIKA OVERSEAS Product Range of AMBIKA OVERSEAS

CHAPTER 3 . RESEARCH METHODOLOGY

Objectives of the Study Research Methodology Limitations of study Wage Payment in AMBIKA OVERSEAS Incentives Schemes in AMBIKA OVERSEAS Data analysis and Interpretation Findings of the Study Suggestions and Conclusion

CHAPTER 4. WAGE PAYMENT IN AMBIKA OVERSEAS CHAPTER 5. DATA ANALYSIS AND INTERPRETATION CHAPTER 6. FINDINGS, SUGGESTIONS & CONCLUSION BIBLIOGRAPHY ANNEXURE

Questionnaire

A PROJECT REPORT ON

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SUBMITTED TO GURU NANAK DEV UNIVERSITY, AMRITSAR In partial fulfillment of the requirement for the degree of

Bechular in business administration -II

Submitted To: Mrs.Ipenderjeet Kaur Lecturer in Commerce H.M.V College Jalandhar Submitted by: Chhavi Pasricha B.B.A- II Roll No.9557 Univ. Roll No. Regd. No. Session (2008-2009)

Hans Raj Mahila Maha Vidyalaya

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Managing DEPUT Director Y CumMANAG Chairman

ER

(jalandhar)

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