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Human Resource Management Project Report [Submitted in Partial Fulfillment] [Fourth Semester: January – May, 2013]

As a part of curriculum of Master of Business Administration (MBA) From Bhai Parmanand Institute of Business Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi Submitted By: Reena Gujral Roll No. – 02411403911 MBA IV Semesters Bhai Parmanand Institute of Business Studies Shakarpur, Delhi-9 1 Submitted To: Shri.S.Thiyagarajan Project Guide

creativity and so on. such as job satisfaction. stock or tax-deferrable arrangements. Compensation building blocks Effective Compensation views total compensation as a strategic collection of a number of programs developed to accomplish specific organizational objectives. Compensation can also be in the form of promotion or words of praise. and shared profits. which in addition to wages includes pensions. It is difficult to outline and explain every aspect of payment of compensation.the fixed amount to be paid (often for performance) according to a system of job classification or market based criteria.additional variable pay based on performance against objectives and payable in cash. job content. Workers also drive a certain amount of personal satisfaction as compensation for a job well done.INTRODUCTION Compensation Management Services rendered by individuals to organizations have to be adequately paid for. 2 . This compensation generally comprises cash payments. bonus for good work. Incentives . The programs can be classified into the following categories: Base Salary . Beside wages there are certain amount of job compensation which an employee look for responsibility.

3 .company paid allowances beyond direct pay (free parking.programs. usually stock plans. club memberships. jury etc.Protective . etc). total medical reimbursement. expense allowance. automobile and operating expense. Phantom equity arrangements and long-term incentives can also be included under this category. Retirement Income . that provide the opportunity to establish a personal estate under attractive conditions.plans that defer income for services rendered to a later payment date (qualified plans such as pensions. Perquisites . profit sharing. Such programs should serve the owners by aligning management's interests with that of the shareholders. and thrift plans as well as supplemental programs and employment contracts). family leave. Paid Time off .programs which insure employees against loss of life or earning ability and which insure against major current expenses:  Life insurance  Medical insurance  Survivor's income  Dental insurance  Disability income Capital Accumulation . holidays.

leave travel allowance. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. the way compensation is allocated to and communicated to employees affects the effectiveness of the programs. They are given at a regular interval at a definite time. medical reimbursements. Direct compensation Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization.In addition. Pf/Gratuity etc. house rent allowance. If the compensation offered is effectively managed. Types of Compensation Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks. Basic Salary Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day. special allowances. bonus. conveyance. it contributes to high organizational productivity. a month etc. It is the money an employee receives from his/her employer by rendering his/her services. time off etc. a week. The monetary benefits include basic salary. 4 .

House Rent Allowance Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. Conveyance Organizations provide for cab facilities to their employees. Fig. This is done to provide them social security and motivate them to work. Few organizations also provide vehicles and petrol allowances to their employees to motivate them. 2.1 Leave Travel Allowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. 5 . The allowances are scaled as per the position of employee in the organization.

These medi-claims include health-insurances and treatment bills reimbursements. 6 . Special Allowance Special allowance such as overtime. travel expenses. commissions. Leave travel Assistance Limits. meals. The bonus amount usually amounts to one month’s salary of the employee. The employees are provided with medi-claims for them and their family members. Insurance. Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. Car policy. Retirement Benefits. club memberships etc are provided to employees to provide them social security and motivate them which improve the organizational productivity. Hospitalization. insurance. mobile allowances. Holiday Homes.Medical Reimbursement Organizations also look after the health conditions of their employees. Overtime Policy. reduced interest loans. They include Leave Policy. Indirect compensation: Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization.

Hospitalization the employees should be provided allowances to get their regular check-ups. the employees have other psychological and self-actualization needs to fulfill. 7 . Even their dependents should be eligible for the medi-claims that provide them emotional and social security. Thus. say at an interval of one year. The organizations provide for paid leaves such as casual leaves. statutory pay etc.Leave Policy It is the right of employee to get adequate number of leave while working with the organization.  Unless compensation is provided no one will come and work for the organization. if they happened to do so. overtime pay etc.  Salary is just a part of the compensation system. and maternity leaves. Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime. Thus compensation helps in running an organization effectively and accomplishing its goals. compensation serves the purpose. such as transport facilities. medical leaves (sick leave). Need of Compensation Management  A good compensation package is important to motivate the employees to increase the organizational productivity.

 The most competitive compensation will help the organization to attract and sustain the best talent.compensation should be high enough to attract talented people. Objectives of Compensation Planning Some of the important objectives of compensation planning are: Attract Talent. Since many organizations compete for hiring right talent and the salaries offered must be high enough to motivate them to apply. commitment. bonus. risk taking and other desired behavior where the company fails to reward this behavior.the compensation levels far below the expectation of employees or are not competitive. Control costs-the cost of hiring people should not be too high effective compensation management ensures that employees are higher over paid nor should equal the worth of the job. Retain Talent. The compensation package should be as per industry standards. employees may quit in should reward loyalty. employees may feel like leaving the company. allowances. benefits etc. Ensure Equity. Comply with legal rules-compensation plans should invariable satisfy government rules regarding minimum wages. Similar jobs should get similar pays likewise more qualified people should get higher pay. experience. 8 . New and desired behavior.

OBJECTIVE OF THE STUDY The main aim of the research is to:(1). (3). Survey about compensation management in Coca Cola.  This study shall give some suggestions for making the present training and development system more effective. how to deal differently with different. (2). retain and motivate the employee of Coca Cola. the contribution of compensation management to attract. Compensation management is the process wherein the management finds out how effective it has been for the employees.  It shall give organization the direction. A detailed study about compensation management. 9 .

 Since the topic was broad as the Payroll System includes a number of allowances. therefore primary data could not be collected.  The data was confidential therefore the officials were hesitant to disclose it. 10 . hence the data cannot be generalized for all branches.  Most of the employees were busy with their tight work and they didn’t want to be disturbed. the study and collection of data could not be done for all branches.LIMITATIONS  Most of the respondent feared to give their names.  Due to short span of time.  Study was done in Delhi Branch only. all those aspects could not be covered.

It offers you first-hand quantitative information relating to your statistical study. 11 . You are to rely on the information which already exists. It does not offer you first-hand information relating to your statistical study. how it proceeds.  The appropriate research design formulated is detailed below: MODE OF DATA COLLECTION: Broadly there are two methods of data collection:  Primary data collection method Secondary data collection method Primary data collection method: Primary source of data implies collection of data from its source of origin. I have collected primary data through:  Questionnaires Interaction with the respondents Secondary data collection method: Secondary source of data implies collection of data from some agency or institution which already happens to have collected the data through statistical survey(s). how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study.RESEARCH METHODOLOGY  A Research Methodology defines the purpose of the research.

I have collected secondary data from:   Internet Books Magazines 12 .

the attrition has been controlled. The employees say that the overall culture of the organization is good and a transparency is maintained in all the departments. But when it comes in terms of monetary rewards in regards of the recognition. Team building activities and outdoor tours has also been initiated recently. The company is in trend with the industry. the attrition rate is high. when it comes to compensation. for the employees. but due to good compensation and work culture. The HR of the company says that due to booming industry. by the senior management and a proper function is organized for the same. The attrition is highest among the low level sales employees. This recognition is given in terms of certificate. The internal parity in the organization for compensation is also good and employed seemed to be satisfied in this regards.CONCLUSION Coca Cola is one of the dominant engineering and manufacturing company in India. The company provides a good career path to its employees as annual performance is given – which is in accordance with the employees. They said that the recognition from the company is also above average. which gives a better and healthy environment to work in. the company is a bit conservative. 13 .   14 .Memorial.cocacola.BIBLIOGRAPHY Books:  www.B. Personnel Management Compensation and Rewards Crystal Publication Motivational Theories. David Shaun. 2009. 2009. Thomson Publication   Website:  www. Uday www.

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