INTRODUCTION

Human resources are the most valuable and unique assets of an organization. The
successful management of an organization’s human Resources is an exciting, dynamic
and challenging task, especially at a time when the world has become a global village and
economies are in a state of flux. The scarcity of talented resources and the growing
expectations of the modern day worker have further increased the complexity of the
Human resources function.

Even though specific resources function/activities are the responsibility of the

human resources department, the actual management of human resources is the
responsibility of all managers to understand and give due Importance’s to the different
human resources policies and activities in the Organization.

Human Resources Management outline the importance of HRM and its different
functions in an organization.

It examines the various HR processes that are concerned with attracting,

managing, motivating and developing employees for the organization. The book discusses
the issue in human resources management in a changing environment and suggests
possible ways of leveraging and managing human resources. changing trends in human
resources management have been explained using contemporary examples from Indian
companies.“If you want 10 days of happiness, grow grain. If you want 10 years of
happiness, grow a tree. If you want 100 years of happiness, grow power.

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OBJECTIVE OF THE STUDY

 To examine the various Compensation procedures that is being followed in the

organization.

 To present the observation to the Management of Care Hospital to improve the

performance of the existing system by implementing new compensation methods.

 The company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service get a gratuity on departure at 15 days
salary (last drawn salary) for each completed year of service.

 Maintaining the flexible, reliable and secure IT infrastructure that is necessary to

support the company’s global operations is an ongoing challenge.

 Care Hospital distribution has continued developing its framework of succession

planning to identify and support the development of employees, who have the
potential capacity and competence to fulfill the roles required for delivering the
future performance required within the business.

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NATURE OF RESEARCH METHODOLOGY

The nature of study conducted is to understand the procedure of the compensation

management, assess the effective compensation packages and to suggest improvements
for enhancing their effectiveness.

Primary Sources of Data

The primary data is collected through the personal interview with the HR manager
and the other employees of the HR circle.. A questionnaire is designed to collect
responses from the employees of the organization.

Secondary Source of Data

The Secondary sources of data are the textbooks, collected by journals articles,
records of the organization and World Wide Web.

Study inside the organization

Four main departments were identified i.e. Flight operation, Administration,

Security, Customs and Immigration the H.R.P with each department the head of the
department and his/her immediate junior were chosen as they informants. The
information from there dept and the required knowledge specially from the administrative
was used from discussion on compensation packages.

SAMPLING TECHNIQUE

The sampling technique used for the collection of information through the
questionnaires is the simple random sampling. And the sample size is 50 respondents.

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QUESTIONNAIRE DESIGN

The designed questionnaire consists of 12 to 13 questions, a combination of open

ended and close ended questions for employees.

ANALYSIS OF DATA

For the purpose of analysis, feedback is collected from the employees in the
organization by the way of questionnaire. Data collected is represented in the form of
percentages in the form of percentages and graphs and an analysis has been done on the
basis of these percentages and graphs.

LIMITATIONS OF THE STUDY

 Due to complex human behavior there is tendency that respondent fail to

provide accurate information.
 The study was conducted for a period of 45 days only.
 Scope of the study was limited
 Sample size taken was small and so it may not be actual representative of the
organization.
 Confidentiality of some information related to human resource plan cost lack
of actual and complete information.
 There was time constraint due to busy academic schedule of the college.
 Frame error has been observed because of in accurate and incomplete
sampling frame.

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 REVIEW OF LITERATURE
INTRODUCTION TO TOPIC

Compensation is what employees receive in exchange for their contribution to the

organization. Generally,. Employees offer their services for three types of rewards. Pay
refers to the base wages and salaries employees normally receive. Compensation forms
such as bonuses, commissions and profit sharing plans are incentives designed to
encourage employees to produce results beyond normal expectation. Benefits such as
insurance, medical, recreational, retirement, etc., represent a more indirect type of
compensation. So, the term compensation is a comprehensive one including pay,
incentives, and benefits offered by employers for hiring the services of employees. In
addition to these, managers have to observe legal formalities that offer physical as well as
financial security to employees. All these issues play an important role in any HR
department’s efforts to obtain, maintain and retain an effective workforce.
Companies’ success in the marketplace is as much a function of the business
practitioners manage employees as it is a function of companies’ structures and financial
resources. Compensating employees represents a critical human resource management
practice: Without sound compensation systems, companies cannot attract and retain the
best qualified employees.
Compensation systems can promote companies’ competitive advantage when they
are properly aligned with strategic goals. Likewise, Compensation practices can
undermine competitive advantage when they are designed and implemented haphazardly.
The purpose of this is to provide knowledge of the art of compensation practice
and its role in promoting companies’ competitive advantage. Students will be best
prepared to assume the roles of competent compensation professionals if they possess a
grounded understanding of compensation practices and the environments in which
business professionals plan, implement, and evaluate compensation systems. Thus we
examine the context of compensation practice, the criteria used to compensate employees,
compensation system design issues, employee benefits, and the contemporary challenges
that compensation professionals will face well into this century.
 Setting the Stage for Strategic Compensation.
 Base for Pay.
 Designing Compensation Systems.
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  Employee Benefits.
 Contemporary Strategic Compensation Challenges

DEFINITIONS OF COMPENSATION MANAGEMENT

 Compensation Management can be define as ”A process which

Motivates employees to increase performance and an employee’s
Worth to the organization.
 It is an important element of an organization which encourages the
Values, culture and the behaviour of the employees.
 It is an important tool of a management which helps the organization
to achieve the objectives of business by effective utilization of human
resources.

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EVOLUTION OF COMPENSATION

Today’s compensation systems have come from a long way. With the changing
organizational structures workers’ need and compensation systems have also been
changing. From the bureaucratic organizations to the participative organizations,
employees have started asking for their rights and appropriate compensations. The higher
education standards and higher skills required for the jobs have made the organizations
provide competitive compensations to their employees.

Compensation strategy is derived from the business strategy. The business goals
and objectives are aligned with the HR strategies. Then the compensation committee or
the concerned authority formulates the compensation strategy. It depends on both internal

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 EVOLUTION OF STRATEGIC COMPENSATION

TRADITIONAL COMPENSATION SYSTEMS

In the traditional organizational structures, employees were expected to work hand

and obey the bosses’ orders. In return they were provided with job security, salary
increments and promotions annually. The salary was determined on the basis of the job
work and the years of experience the employee is holding. Some of the organization
provided for retirement benefits such as, pension plans, for the employees. It was
assumed that humans work for money, there was no space for other psychological and
social needs of workers.

CHANGE IN COMPENSATION SYSTEMS

With the behavioral science theories and evolution of labour and trade unions,
employees started asking for their rights. Maslow brought in the need hierarchy for the
rights of the employees. He stated that employees do not work only for money but there
are other needs too which they want to satisfy from there job, i.e. social needs,
psychological needs, safety needs, self-actualization, etc. Now the employees were being
treated as human resource.

Their performance was being measured and appraised based on the organisational
and individual performance. Competition among employees existed. Were expected to
work hard to have the job security. The compensation system was designed on the basis
of job work and related proficiency of the employee.

TODAY’S MODERN COMPENSATION SYSTEMS

Today the compensation systems are designed aligned to the business goals and
strategies. The employees are expected to work and take their own decisions. Authority is
being delegated. Employees feel secured and valued in the organisation. Organisations
offer monetary and non-monetary benefits to attract and retain the best talents in the
competitive environment. Some of the benefits are special allowances like mobile,
company’s vehicle; House rent allowances; statutory leaves, etc

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INTRINSIC COMPENSATION

Intrinsic compensation represents employees’ critical psychological states that

result from performing their jobs. Job characteristics theory describes these critical
psychological states. According to this job theory, employees experience enhanced
psychological states (that is, intrinsic compensation) when their jobs rate high on five
core job dimensions: skill variety, task identity, task significance, autonomy, and
feedback (1). Job that lack these core characteristics do not provide much intrinsic
compensation.

 Skill variety is the degree to which the job requires the person to perform
different tasks and involves different skills, abilities, and talents.
 Task from identity is the degree to which a job enables a person to complete an
entire job from start to finish.
 Task significance is the degree to which the job has an impact on the lives or
work of other people.
 Autonomy is the amount of freedom, independence, and discretion the
employee enjoys in determining how to perform the job.
 Feedback is the degree to which the job or employer provides the employee
with clear and direct information about job outcomes and performance.

EXTRINSIC COMPENSATION:

Extrinsic compensation includes both monetary and non-monetary

rewards Compensation professionals establish monetary compensation
programs to reward employees according to their job performance levels or
for learning job-related knowledge or skills. As we will discuss shortly,
monetary compensation represents core compensation. Non-monetary
rewards include protection programs (for example, day care assistance).
Most compensation professionals refer to no monetary rewards as employee
benefits or fringe compensation.

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CORE COMPENSATION:

There are six types of monetary or core, compensation. The elements of base pay
adjustments are listed in Table.

BASE PAY:

Employees receive base pay, or money, for performing jobs. Base pay is
recurring; that is, employees continue to receive base pay as long as they remain in their
jobs. Companies disburse base pay to employees in either one of two forms –as hourly
pay or wage or as salary. Employees earn hourly pay for each hour worked. They earn
salaries for performing their jobs, regardless of the actual number of hours worked.
Companies measure salary on an annual basis.

Companies typically set base amounts for jobs according to the level of skill,
effort, and responsibility required performing the jobs and the severity of the working
conditions. Compensation professionals refer to skill, effort, responsibility, and working
conditions factors as compensable factors because they influence pay level. Courts of law
use these four compensable factors to determine whether jobs are equal per the equal pay
Act of 1963. Compensation professionals use.

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ELEMENTS OF CORE COMPENSATION.
BASE PAY:
 Hourly pay
 Annual Salary
How base pay is adjusted over time
 Cost-of-living adjustments
 Seniority pay
 Merit pay
 Incentive pay
 Pay-for-knowledge and skill-based pay.

These compensable factors to help meet three pressing challenges, which we introduce
late in this chapter: internal consistency market competitiveness recognition of individual
contributions.

COST-OF-LIVING Adjustments (COLAs):

COLAs represent periodic base pay increases that are based on changes in prices as
indexed by the consumer price index (CPI). COLAs enable workers to maintain their
purchasing power and standard of living by adjusting base pay for inflatio. COLAs are
most common among workers represented by unions.

Seniority Pay:

Seniority Pay systems reward employees with periodic additions to base pay according
to employees’ length of service in performing their jobs. These pay plans assume that
employees become more valuable to companies with time and that valued employees.

Merit Pay:
Merit Pay programs assume that employees’ compensation over time should be
determined, at least in part, by differences in job performance. Employees earn
permanent increases to base pay according to their performance. Merit pay rewards
excellent effort or results, motivates future performance, and helps employers retain
valued employees.

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INCENTIVE PAY

Incentive Pay or variable pay rewards employees for partially or completely

attaining a predetermined work objective. Incentive pay is defined as compensation
(other than base wages or salaries) that fluctuates according to employees’ attainment or
some standard base on a reestablished formula, individual or group goals, or company
earnings.

PAYS-FOR-KNOWLEDGE PLANS AND SKILL-BASED PAY:

Pay-for-knowledge plans reward managerial, service, or professional workers for

successfully learning specific curricula. Skill-based pay, used mostly for employees who
perform physical work, increases these workers’ pay as they master new skills. Both
skill- and knowledge-based pay programs reward employees for the range, depth, and
types of skills or knowledge they are capable of applying productively to their jobs. This
feature distinguishes pay-for-knowledge plans for merit pay, which rewards employees’
job performance.

FRINGE COMPENSATION OR EMPLOYEE BENEFITS:

Earlier, we noted that fringe compensation represents non monetary rewards.

Fringe compensation or employee benefits include any variety of programs that provide
pay time-off, employee services, and protection programs.

LEGALLY REQUIRED BENEFITS:

Legally required benefits are protection programs that attempt to promote worker
safety and health, maintain the influx of family income, and assist families in crisis. The
key legally required benefits are mandated by the Social Security Act of 1935, various
state workers’ compensation laws and the Family and Medical Leave Act of 1993. All
provide protection programs to employees and their dependents.

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DISCRETIONARY BENEFITS:

Discretionary benefits fall into three broad categories: protection programs, paid
time-off, and services, Protection programs provided family benefits, promote health,
and guard against income loss caused by catastrophic factors such as unemployment,
disability, or serious illness. Not surprisingly, paid time-off provides employees with pay
for time when they are not working, such as vacation. Services provide enhancements
such as tuition reimbursement and day care assistance to employees and their families

HOW THE COMPENSATION FUNCTION FITS INTO HR

DEPARTMENTS:

Human resource practice do not operate in isolation. Every HR practice is related

to others in different ways. For example, Microsoft Corporation publicly acknowledges
the relationships between compensation and other HR practices.

ORGANISATIONAL CULTURE:

Organizational culture is an organization’s system of shared values and beliefs

that produce norms of behavior (9). These values are apparent in companies’
organizational and work structures. Also, organizational culture influences HR systems
designs, including compensation.

TRADITIONAL HIERARCHY

The Traditional design of U.S. companies emphasizes efficiency, decision making

by managers, and dissemination of information from the top of the company to lower
levels, illustrates is the intermediary for the company’s chief executive officer and the
vice presidents of the functional areas. Within the functional areas, the decision making
flow downward from the vice president to managers of specialties within the functions.

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NATURE OF COMPENSATION

Compensation offered by an organization can come both directly through base pay
and variable pay and indirectly through benefits.

 Base pay: It is the basic compensation an employee gets, usually as a wage or

salary
 Variable pay : it is the compensation that is linked directly to performance
accomplishments (bonuses, incentives, stock options).
 Benefits: These are indirect rewards given to an employee or group of
employees as a part of organizational membership (health insurance, vacation
pay, retirement pension etc.)

The most important objective of any pay system is fairness or equity.

The term equity has three dimensions.

a) Internal equity: This ensures that more difficult jobs are paid more.
b) External equity: ‘this ensures that jobs are fairly compensated in comparison
to similar jobs in the labour market.
c) Individual equity: It ensures equal pay for equal work, i.e., each individual’s
pay is fair in comparison to others doing the same/similar jobs.
In addition, there are other objectives also. The ultimate goal of compensation
administration (the process of managing a company’s compensation
programme) is to reward desired behaviours and encourage people to do well
in their jobs. Some of the important objectives that are sought to be achieved
through effective compensation management are listed below:

a) Attract talent: Compensation needs to be high enough to attract talented

people. Since many firms compete to hire the services of competent people,
the salaries offered must be high enough to motivate them to apply.
b) Retain talent: If compensation levels fall below the expectations of
employees or are not competitive, employees may quit in frustration.

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 c) Ensure equity: Pay should equal the worth of a job. Similar jobs should get
similar pay. Likewise, more qualified people should get better wages.
d) New and desired behaviour: Pay should reward loyalty, commitment,
experience, risk taking, initiative and other desired behaviours. Where the
company fails to reward such behaviours, employees may go in search of
greener pastures outside.
e) Control costs: The cost of hiring people should not be too high. Effective
compensation management ensures that workers are neither overpaid nor
underpaid.
f) Comply with legal rules: Compensation programmes must invariably satisfy
governmental rules regarding minimum wages, bonus, allowances, benefits,
etc.
g) Ease of operation: The compensation management system should be easy to
understand and /” operate. Then only will it promote understanding regarding
pay-related matters between employees, unions and managers.

EQUITY AND PAY RATES

The need for equity is the most important factor in determining pay rates. This
is achieved through the following steps:3
 Find the worth of each job through job evaluation.
 Conduct a salary survey to find what other employers are paying for
comparable jobs.
 Group similar jobs into pay grades.
 Price each pay grade by using wage curves.
 Fine tune pay rates.

JOB EVALUATION

Job analysis offers valuable information for developing a compensation system in

terms of what duties and responsibilities need to be undertaken. The worth of a job to the
organization is as ascertained through job evaluation. Since the whole process is largely
subjective, a committee is appointed to collect information and come up with a hierarchy

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of jobs according to their value. The evaluation is done through the use of market pricing
or through the use of ranking, point or factor comparison methods.
WAGE AND SALARY SURVEYS

While job evaluation ensures internal equity wage and salary surveys ensure
external equity. A wage and salary survey provided information as to what other
organizations that compete for employees are paying. The survey could cover all the jobs
within an organization (obviously costly and hence avoided) or limited to benchmark
jobs, jobs that are used to anchor the company’s pay scale and around which other jobs
are slotted based on their relative worth to the firm. The benchmark jobs have

the following basic characteristics.

 Many workers in other companies have these jobs.

 They will not be changing in the immediate future in terms of tasks,
responsibilities, etc.
 They represent the full range in terms of salary such that some are among
the lowest paid in the group of jobs, others are in the middle range and
some are at the high end of the pay scale.

Formal and informal surveys (through telephone, for example) could be

undertaken to collect data on benefits like insurance, medical leave, vacation pay, etc.,
and so offer a basis on which to take decisions regarding employee benefits. Published
source also provide valuable information regarding industry wise trends in salary
structures in and around the country. The published sources in India include:

 Reports published by the Ministry of Labour

 Pay commission reports.
 Reports of Wage Bonds appointed by Government.
 Reports of employees and employers’ organizations.
 Trade journals of specific industry groups, etc

One of the major problems with these sources is the comparability of jobs in
the survey to jobs in the organization. To overcome the limitations of published

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 surveys, conduct your own surveys of important jobs. The following survey methods
are generally used to collect relevant wage-related information:

COMPONENTS OF PAY STRUCTURE IN INDIA

The pay structure of a company depends on several factors such as labour market
conditions, company’s paying capacity and legal provisions:

WAGES

In India, different Acts include different items under wages, though all the Acts
include basic wage and dearness allowance under the term wages. Under the Workmen’s
Compensation Act, 1923, “wages for leave period, holiday pay, overtime pay, bonus,
attendance bonus, and good conduct bonus” from part of wages. Under the payment of
Wages Act, 1936, Section 2 (vi), “any award of settlement and production bonus, if paid,
constitutes wages.” Under the Payment of Wages Act, 1948, “retrenchment
compensation, payment in lieu of notice and gratuity payable on discharge constitute
wages.”

However, the following types of remuneration, if paid, do not amount to wages

under any of the Acts:

i. Bonus or other payments under a profit-sharing scheme which do not form a

part of contract of employment.
ii. Value of any house accommodation, supply of light, water, medical
attendance, traveling allowance, or payment in lieu thereof or any other
concession.
iii. Any sum paid to defray special expenses entailed by the nature of the
employment of a workman.
iv. Any contribution to pension, provident fund, or a scheme of social security
and social insurance benefits.
v. Any other amenity or service excluded from the computation of wages by
general or special order of an appropriate governmental authority.

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 The term ‘Allowances’ includes amounts paid in : addition to wages over a period
of time including holiday pay, overtime pay, bonus, social security benefit, etc. The wage
structure in India may be examined broadly under the following heads:
BASIC WAGE

The basic wage in India corresponds with what has been recommended by the Fair
Wages Committee (1948) and the 15th Indian Labour Conference (1957). The various
awards by wage tribunals, wage boards, pay commission reports and job evaluations also
serve as guiding principles in determining ‘basic wage’. While deciding the basic wage,
the following criteria may be considered: (i) Skill needs of the job; (ii) Experience
needed; (iii) Difficulty of work: mental as well as physical; (iv) Training needed; (v)
Responsibilities involved; (vi) Hazardous nature of job.

DEARNESS ALLOWANCE (DA)

It is the allowance paid to employees in order to enable them to face the

increasing dearness of essential commodities. It serves as a cushion, a sort of insurance
against increase in price levels of commodities. Instead of increasing wages every time
there is a rise in price levels, DA is paid to neutralize the effects of inflation; when prices
go down, DA can always be reduced. This has, however, remained a hypothetical
situation as prices never come down to necessitate a cut in dearness allowance payable to
employees.

DA is linked in India to three factors: the index factor, the time factor and the
point factor. All India consumer price index (AICPI): The Labour Bureau,
Shimla, computes the AICPI (Base 1960 = 100 points) from time to time.

Time Factor: in this case DA is linked to the rise in the All India Consumer Price
index (AICP!) in a related period, instead of linking it to fortnightly or monthly
fluctuations in index.

Point Factor: Here DA rises in line with a rise in the number of index points
above a specific level.

Other allowances:

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 The list of allowances granted by employers in India has been expanding, thanks
to the increasing competition in the job market and the growing awareness on the part of
employees.
FACTORS INFLUENCING COMPENSATION LEVELS:-

The amount of compensation received by an employee should reflect the effort put
in by the employee, the degree of difficulty experienced while expending his energies, the
competitive rates offered by others in the industry and the demand-supply position within
the country, etc. These are discussed below.

a) Job Needs: Jobs vary greatly in their difficulty, complexity and challenge. Some
need high levels of skills and knowledge while others can be handled by almost
anyone. Simple, routine tasks that can be done by many people with minimal
skills receive relatively low pay. On the other hand, complex, challenging tasks
that can be done by few people with high skill levels generally receive high pay.

b) Ability to pay: Project determines the paying capacity of a firm. High profit
levels enable companies to pay higher wages. This partly explains why computer
software industry pays better salaries than commodity based industries (steel,
cement, aluminum, etc), Likewise, multinational companies also pay relatively
high salaries due to their earning power.

c) Cost of living: Inflation reduces the purchasing power of employees. To overcome

this, unions and workers prefer to link wages to the cost of living index rises due to
rising prices, wage follow suit.

d) Prevailing wage rates: Prevailing wage rates in competing firms within an

industry are taken into account while fixing wages. A company that does not pay
comparable wages may find it difficult to attract and retain talent.

e) Unions: Highly unionized sectors generally have higher wages because well
organized unions can exert presence on management and obtain all sorts of benefits
and concessions to workers.

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f) Productivity: This is the current trend in most private sector companies when
workers’ wages are linked to their productivity levels. If your job performance is
good, you get good wages. A sick bank, for example, can’t hope to pay competitive
wages, in tune with profit making blanks.

g) State Regulation: The legal stipulations in respect of minimum wages, bonus,

dearness allowance, allowances, etc., determine the wage structure in an industry.

h) Demand and supply of labour: The demand for and the supply of certain skills
determine prevailing wage rates. High demand for software professionals, R&D
professionals in drug Industry, telecom and electronics engineers, financial analysis,
management consultants ensures higher wages. Oversupply kills demand for a certain
category of employees leading to a steep fall in their wages as well.

Most employers, nowadays, are Interested in paying a fair wage to all workers which
is neither very high (affecting the company’s profitability) nor very low (where
attracting and retaining people becomes difficult).

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FRINGE BENEFITS

The term ‘fringe benefits’ refers to the extra benefits provide to employees in
addition to the normal compensation paid in the form of wage or salary. Many years ago,
benefits and services were labeled ‘fringe’ benefits because they were relatively
insignificant or fringe components of compensation. However, he situation now is
different, as these have, more or less, become important components of a comprehensive
compensation package offered by employers to employees.

TB main feature of fringe benefits, as they stand today may be stated thus:9

 They are supplementary forms of compensation.

 They are paid to all employees (unlike incentives which are paid to specific
employees whose work is above standard) based on their membership in the
organization.
 They are indirect compensation because they are usually extended as a
condition of employment and are not directly to performance.
 They help raise the living condition of employees.
 They m be statutory or voluntary. Provident find is a statutory benefit whereas
transport is a voluntary benefit.

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TYPES OF FRINGE BENEFITS

The fringe benefits offered by various organizations in india may be broadly

classified into five categories. These few discussed below:

Payment for time not worked: This category include: (a) hours of work, (b)
paid holidays, (c) shift premium, (d) holiday pay and (e) paid vacation.

i. Hours of Work: Section 51 of the Factories Act, 1948, specifies that no

adult worker shall be required to work in a factory for more than 48 hours
in any week. Section 54 of the Act restricts the working hours to 9 on any
day. In some organization, the numbers of working hours are less than the
legal requirements.
ii. Paid Holiday: According to the Factories Act, 1948, an adult worker shall
have weekly paid holidays, preferably Sunday. When a worker is deprived
of weekly holidays, he is eligible for compensatory holidays of the same
number in the same month. Some organizations allow the workers to have
two days’ holidays in a week.
iii. Shift Premium: Companies operating second and third shifts, pay a
premium to the workers who are required to work during the odd hour’s
shift.
iv. Holiday Pay: Generally organizations offer double the normal rate of the
salary to those workers, who work during holidays.
v. Paid Vacation: Workers in manufacturing, mining and plantations who
worked for 240 days during a calendar year are eligible for paid vacation
at the rate of one day for every 20 days worked in case of adult workers
and at the rate of one day for every 20 days worked in case of adult
workers and at the rate of one day for every 15 days worked in case of
child workers.

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EMPLOYEE SECURITY:

Physical and job security to the employee should also be provided with a view to
ensure security to the employee and his family members. When the employee’s services
get confirmed, his job becomes secure. Further, a minimum and continuous wage or
salary gives a sense of security to the life. The Payment of Wages Act, 1936, the
Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, provide income security to
the employees.
i. Retrenchment compensation: The Industrial Disputes Act, 1947, provides
for the payment of compensation in case of lay off and retrenchment. The non-
seasonal industrial establishments employing 50 or more workers have to give
one month’s notice or one month’s wages to all the workers who are
retrenched after one year’s continuous service. The compensation is paid at the
rate of 15 days wage for every completed year of service with a maximum of
45 days wage in a year. Workers are eligible for compensation as stated above
even in case of closing down of undertakings.
ii. Layoff Compensation: in case of layoff, employees are entitled to layoff
compensation at the rate equal to 50% of the total of the basic wage and
dearness allowance for the period of their layoff except for weekly holidays.
Layoff compensation can normally be paid up to 45 days in an year.

1.22.3.5 Old age and retirement benefits: Industrial life generally breaks joint
family system. The saving capacity of the employees is very low due to lower wages,
high living cost and increasing aspirations of the employees and his family members. As
such, employers provide some benefits to the employees, after retirement and during old
age, with a view to create a feeling of security about the old age. These benefits are called
old age and retirement benefits. These benefits include provident fund, (b) pension, (c)
deposit linked insurance, (d) gratuity and (e) medical benefit.

i. Provident fund: his benefit is meant for economic welfare of the employees. The
Employee’s provident found, Family Pension Fund and Deposit Linked insurance
Act, 1952, provides for the institution of Provident Fund for employees in
factories and establishments. Provident Fund Scheme of the Act provides for

23
 monetary assistance to the employees and/or their dependants during post
retirement life. Thus this facility provides security against social risks and this
benefit enables the industrial worker to have better retired life. Employees in all
factories under Factories Act, 1948, are covered by the Act. Both the employee
and employer contribute to the fund. The employees on attaining 15 years of
membership are eligible for 100% of the contributions with interest. Generally
the organizations pay the Provident Fund amount with interest to the employee on
retirement or to the dependants of the employee, in case of death.

ii. Pension: The Government of India introduced a scheme of Employees Pension

Scheme for the purpose of providing Family Pension and Life insurance benefits
to the employees of various establishments to which the Act is applicable. The
Act was amended in 1971 when Family Pension Fund was introduced in the Act.
Both the employer and the Employee contributes to this fund. Contributions to
this fund are from the employee contributions to the Provident Fund to the tune of
1.1/3% of employee wage.

Pension Rates

Pay for Month Rate

Rs.800 or more More than Rs 12% of the basic subject to a maximum of Rs 150 as
200 but less Than Rs 800 Rs monthly pension. 15% of the basic subject to a maximum
200 or less of Rs 96 and a minimum of Rs 60 as monthly pension.
30% of the basic subject to a minimum of Rs 60 as
monthly pension.

This scheme also provides for the payment of a lumpsum amount of Rs 4,000 to
an employee on his retirement as retirement benefit and a lumpsum amount of Rs 2,000 in
the event of death of employee as life insurance benefits.

24
Deposit linked insurance:
Employees deposit linked insurance scheme was introduced in 1976 under the
P.F. Act, 1952. Under this scheme, if a member of the Employees Provident fund dies
while in service, his dependents will be paid an additional amount equal to the average
balance during the last three years in his account. (The amount should not be less than Rs
1000 at any point of time). Under the employee’s deposit linked insurance scheme, 1976
the maximum amount of benefits payable under the deposit linked insurance is Rs 10,000.

Gratuity : This is another type of retirement benefit to be provided to an employee either

on retirement or at the time of physical disability and to the dependents of the deceased.
Gratuity is a reward to an employee for his long service with his present employer.

The Payment of Gratuity Act, 1972, is applicable to the establishments in the

entire country. The act provides for a scheme of compulsory payment of gratuity by the
managements of factories, plantations, mines, oil fields, railways, shops and other
establishments employing 10 or more persons to their employees, drawing the monthly
wages up to Rs 1,600 per month.

Gratuity is payable to all the employees who render a minimum continuous

service of five years with the present employer. It is payable to an employee on his
superannuation or on his retirement or on his death or disablement due to accident or
disease. The gratuity payable to an employee shall be at the rate of 15 days wage for
every completed year of service on part thereof in excess of six months. Here the wage
means the average of the basic pay last drawn by the employee. The maximum amount of
gratuity payable to an employee shall ot exceed 20 months’ wage.

Medical benefit: Some of the large organizations provide medical benefits to their retired
employees and their family members. This benefit creates a feeling of permanent
attachment with the organization to the employees even when they are no longer in
service.
Fringe benefits are one of the means to ensure, maintain and increase the material
welfare of employees. The physical and mental strain of workers in an industry is
considerably alleviated by tax benefits through creating an environment that insulates

25
them from fatigue and monotony. Employees who get fringe benefits are stimulated to
give of their best so as to increase productivity and to develop a sense of belongingness to
the organization. Research studies, however, could not establish proof of any relationship
between the amount spent on fringe benefits and level of productivity.

All organizations may not provide all the benefits discussed earlier due to
financial stringencies. Moreover, the list of benefits given earlier is not exhaustive one
and some organizations provide different benefits which are not included in the list owing
to their need and the financial ability of the organizations.

Human Resource Management does not end with salary administration. It should
also deal with hum aspects of personnel management. Human aspects of personnel
management include understanding and maintaining human relation. Hence,
understanding and maintaining human relation can be treated as a function Human
Resource Management

The Workmen’s Compensation Act, 1923

The Act followed the British model with necessary changes to suit Indian
conditions. The main objective of the Act is to impose an obligation upon the employer to
pay compensation to the workman who suffers partial or total incapacity for more than 3
days resulting in a loss in earning capacity the main features of the Act are as under:

Coverage: The Act covers all workers employed in factories, mines, plantations,
transportation, construction works, railways, ships and certain other hazardous
occupations as mentioned in Schedule II of the Act. It does not apply to casual workers
covered under the Employees State insurance Act and members of the Armed Forces.

26
The Employees’ Provident Funds and Miscellaneous Provisions Act,
1952

The Act offers retirement benefits to workers in the form of provident fund,
pension and deposit linked insurance. The main features of the Act are as under:

Coverage: The Act applies to factories in any industry mentioned in schedule I where
20 or more persons are employed. The Act does not apply to (i) cooperative societies
where less than 50 persons are employed and working without the aid of power (ii) new
establishments for 3 years from the date of commencement.

Administration: A Tripartite Central Board of Trustees consisting of representatives of

employees, employers and Government oversee the implementation of the provisions of
the Act. The benefits of the Act include the following:

 Provident fund scheme: Under the scheme, dedications are made from the
employees’ salary every month. The employer con relates an equivalent sum. The
total contributions are deposited with the Provident Fund Commission or invested
in a specified way. Premature withdrawals, loans and advances can obtained by
the employee for higher education, marriage of children’, purchase of car,
construction of house, etc. when the employee leaves the company, retires or dies
the credit, balance in his account with interest is paid to his nominees.
 Family pensions scheme, 1971: When the employee dies while in service,
pension is paid to his widowr children. Under the new scheme, pension is paid to
his widower children. Under the new scheme, pension is payable to an employee
after his. Retirement in place of provident fund. An employee can opt for either
provident fund scheme or pension scheme.
 Deposit linked insurance scheme, 1976: In this scheme, the legal heir or
nominee of the deceased employee gets an amount equal to the average balance in
his provident fund during the procedure ‘One year subject to a maximum Rs
3,500. The employer and the Central government make contribution to this
employee is not required to make any contribution. And the employee.

27
NEEDS OF IMPORTANT COMPONENTS TO BUILD A
COMPENSATION STRUCTURE

Components of Compensation System

Compensation system is designed keeping in minds the strategic goals and

business objectives. Compensation system is designed on the basis of certain factors after
analyzing the job work and responsibilities, Components of a compensation system are as
follow

28
Types of Compensation

Compensation provided to employees can direct in the form of monetary benefits

and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provide to the employees in return for their services. If the compensation
offered is effectively managed, it contributes to high organizational productivity.

Direct Compensation

Direct compensation refers to monetary benefits offered and provided to

employees in return of the services they provide to the organization. The monetary

S
U
B
A
Y
E
V
N
O
C
benefits include basic salary, house rent allowance, conveyance, leave travel allowance,
medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a
regular interval at a definite time.

DIRECT
COMPENSATION

29
`
Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to

employees in lieu of the services provided by them to the organization. They include
Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel
Assistance Limits, Retirement Benefits, Holiday Homes.

Strategic Compensation

Strategic compensation is determining and providing the compensation packages

to the employees that are aligned with the business goals and objectives. In today’s
competitive scenario organizations have to take special measures regarding compensation
of the employees so that the organizations retain the valuable employees. The
compensation systems have changed from traditional ones to strategic compensation
systems.

30
 According to Richard Oyen, the current economic climate can tempt HR
professionals to curtail some standard compensation management processes in search of a
silver lining. For example, many may opt not to expend the energy involved in making
compensation adjustments. What’s the point, they reason, when they have no budget for
raises or bonuses? The reality, however, is that lean periods like this cry out for
optimized efficiency. For businesses to get the most from the budget they do have, they
must focus on those areas that directly influence the company’s bottom line—and
compensation has one of the most profound impacts of them all. So as you work to
improve on your employees’ compensation practices, here are five critical steps that will
maximize your efforts. Your organization can have the most in-depth compensation
management model, equipped with fancy processes and up-to-the second salary market
data, but it all means nothing if it does not tie your merit adjustments to your performance
metrics. A true pay-for-performance culture requires you to thoroughly assess the
organization’s performance, calibrate your results to eliminate any managerial bias, and
ultimately compensate individuals for accomplishing their goal targets. Be absolutely
certain that your compensation processes are configured along these lines, or you will be
wasting valuable budget. Human capital is your organization’s greatest cost-yet far too
many of us continue to manage employee data and calculate salary adjustments using
basic spreadsheets. Over a decade of research has consistently proven that spreadsheets
are notoriously full of errors. Why? Because people make mistakes. In fact, people are
typically only 95% to 98% accurate when they create formulas in spreadsheets1. Imagine
the number of formulas in any given spreadsheet your department produces-and then
weigh that against the results of one study in particular that found over 90% of
spreadsheets contained errors2.

When rewarding your employees for their hard work, consider offering stock
options or one-time financial bonuses instead of simply increasing base salaries. And
remember: money is not the only motivator for engaging and retaining your workforce.
Look for other development opportunities, such as training or an increase in
responsibilities. These alternatives reflect your faith in key employees while defining
clear conduits for career growth. Market wages can fluctuate widely depending on your
industry. In addition to assessing merit increases and bonuses, take the time to see where
your organization’s salaries line up with market standards. Depending on your corporate

31
salary strategy, you may need to make some adjustments that help ensure fair and
equitable compensation, especially for those roles facing high turnover risk.

HR Should not be conducting compensation budget allocations alone and behind

closed doors at headquarters. You’ll still oversee the process to ensure consistency and
control costs but if your organization hopes to improve the ongoing cycle of talent
development, you must be certain that managers participate in this critical process. Give
them all the tools they will need to easily make smart, effective decisions, including
performance and goal data, salary bands, previously allocated budget information,
increase guidelines, and so on. You’ll also find that managers and employees alike are
more responsive during compensation processes. Take advantage of this opportunity and
have them complete other necessary performance management tasks, such as talent
assessments for succession planning activities. While we might be tempted to cut back on
some HR efforts, we should remember that out current economic crisis is actually a call
for greater diligence particularly with regard to large budget items like compensation.
Now is the time to optimize your processes to ensure the most efficient use of corporate
resources, and to help engage, retain, and develop your company’s most valuable asset its
workforce. .r1e2f
According to the Mr. Grant Mc Glaughlin “The Canadian Securities
Administrators have adopted new executive compensation disclosure rules that will come
into force on December 31, 2008. These amendments, the first changes to the executive
compensation rules since 1994, are intended to provide shareholders with a clearer
perspective on executive compensation.

The central elements of the new rules are to require disclosure of all direct and
indirect compensation that an issuer’s board paid and intended to pay to executives, and
the reasons for the amount of compensation paid to executives so as to provide investors
with an understanding of how compensation decisions were made. The rule changes,
which are significant, are similar to the SEC’s rules on executive compensation adopted
last year. The new rules apply for financial years ending on or after December 31, 2008,
so issuers will need to comply with the new rules for the 2009 proxy season”. The New
Rules in order to prepare to report under the new rules, there are certain steps that
companies should take to ensure they will be fully compliant by the deadline. The new

32
rules are complex, detailed and will require the collection and development of a
significant amount of additional compensation information. The new requirement for
compensation discussion and analysis will require extensive involvement of the board of
directors, compensation committee, and management team and outside advisors. Issuers
should begin preparing

Their executive compensation disclosure as soon as possible. Examine new

executive compensation report of issuers. Although the new rules implemented by the
SEC are not identical to those coming into force in Canada, the policy reasons behind the
new rules, and many features, are very similar. Therefore, analyzing the changes made by
reporting companies in the United States may help issuers in Canada to get a better sense
of how to address the new requirements. Analyze the policy reasons and general
philosophy behind the company’s current compensation practices. Under the new rules,
issuers will be required to disclose detailed reasons for their chosen methods of
compensation. Therefore, it will be useful for issuers to establish and articulate a
comprehensive policy for executive compensation to consider weather each element of
executive compensation is consistent with that policy.”
The content of this article does not constitute legal advice and should not be relied
on in that way. Specific advice should be sought about your specific circumstances
According to Kathleen A. McNally “Today there is a lot of talk about
compensation, its cost to the organization and the company’s return on its compensation
investment. As a result, a variety of new pay systems have been developed, each with its
own objective, benefits and risks. Some companies have already installed new pay plans,
and many more are considering it. Many companies that have implemented various new
Pay Plans find that plan objective become disconnected from the larger picture; they have
been designed with a local rather than a global view. These companies are looking for a
way to integrate their pay system into a cohesive whole so the plans drive the company
objectives. Other companies are beginning to look at new plans, wondering how

These plans will fit into the current pay system. Often, there is little connection
between the new pay systems and the overall business plan of the organization. New pay
systems are designed to achieve specific, departmental objectives or, worse, they are
because “everybody is doing it.” The traditional function of pay to attract, retain and
motivate employees has not changed with the introduction of new pay systems; but the
33
emphasis has shifted from the attraction and retention functions to the motivation
function. The planning process Strategic compensation planning allows an organization to
focus on its strategic objectives and develop a comprehensive plan, considering base pay,
short- and long-term incentives, benefits and growth opportunities. This kind of planning
helps ensure that the compensation system will support the organization’s long-and short-
term objectives without overlap, which would have more than one pay plan driving the
same objectives.”

A strategy planning chart, allows to evaluate how well its current pay
system helps to attract, retain and motivate its employees. Down the side of the chart are
elements of the compensation system: direct pay, indirect pay (benefits) and several
nonpayer elements of the employee “contract” that different this company from
competitors. To identify these elements in your organization ask: “why would someone
come to work here instead of for the competition, if pay and benefits were the same? ’The
answer may be such factors as career opportunities, a participative culture, promises to
reduce staff only through attrition, or flexible work hours.

Care Hospital is one of the world’s leading Ground Services and Cargo handlers. It currently

34
operates at 125 airports in 28 countries across five continents. Headquartered in London and part of a
stable company built up over one hundred and seventy years and quoted on the London Stock Exchange.
Care Hospital is a full subsidiary of John Care Hospital Plc established in Edinburgh in 1833 by John
Care Hospital when he opened his first bookshop, and to this day the Group Headquarters remain in
Edinburgh at 108 Princess Street. The Group has 2 main operating Divisions – Care Hospital and Care
Hospital Distribution. It is one of the world's major independent suppliers of ground and cargo handling
services to the aviation market providing passenger, ramp and cargo services for many of the world's
leading airlines. Around the world, Care Hospital handles over 500 airlines. The main customers include
Alaska Airlines, easyJet, British Airways, Cathay Pacific, Singapore Airlines, Thai International
Airways, Qantas, Air France, Lufthansa, American Airlines, United, Delta, JAL and Korean.

Care Hospital Bobba Ground Handling Services has been successful in securing the ground
handling license for seven years and is honored to be selected as one of the two ground
handlers at the New Hyderabad International Airport. Our scope of license broadly covers
passenger handling and ramp handling including cabin cleaning. Care Hospital and Bobba
Group, a joint venture company has been awarded cargo handling license at the new Bangalore
International Airport. We are serious in our commitment to partners, both in terms of expertise
and financial investment. We always want to ensure that we are best able to support airline
clients in delivering the highest service levels to their own customers and protecting the
Airport's reputation with a strong safety track record.

Care Hospital Bobba Ground Handling Services is a joint venture company of Care Hospital
and Bobba Group.

35
 COMPANY PROFILE
Ground Handling Project at the new Hyderabad International Airport has been a very exciting
opportunity for Care Hospital and Bobba Group. Care Hospital Bobba Ground Handling
successfully started operations from Rajiv Gandhi International Airport effective 23 march,
2008 for full service handling for international carriers.

All brand new ground support equipment was delivered from overseas and from local
suppliers and commissioned. All the ground handling staff were recruited, trained and prepared
to service our customers in line with Care Hospital global standards six months ahead of
operations start up. Besides scheduled flights, non-scheduled/diverted Cargo and Passenger
Flights are handle by us.

We have an active Safety management system and an active quality system in place.
We maintain our operational quality data based on service level agreements signed up with our
airline customers, and compile a monthly quality report. Our services both on passenger and
ramp have been audited by all our customer airlines and have successfully passed the audit
results. This is an ongoing process and our records are updated on regular basis.

36
 Quality Care India Limited
Quality Care India Limited, also known as CARE Hospital, operates a chain of
hospitals in India. It offers services in the areas of cardiology, nephrology, urology,
neurology, emergency medicine, gastro-enter logy, oncology, and bones and joints. The
company also provides ambulance services, emergency rooms, blood bank, and
pharmacy, as well as health checks. In addition, it manufactures various medical devices,
such as cardiac stents, as well as catheters for cardiac, renal, and critical care applications.
Quality Care India Limited was incorporated in 1992 and is based in Hyderabad, India.

CARE is one of the fastest growing hospital chains in India, engaged in providing
primary as well as tertiary healthcare services, with a difference. It is a hospital chains
that is founded and managed by professionals with a mission and a passion for providing
healthcare for the needy.

Mission & Vision:

To provide the best and cost-effective care, accessible to every patient, though
integrated clinical practice, education and research, delivered with compassionate care and
concern though team spirit and transparency To evolve as a unique university based health care
centre where the quest for new knowledge would continuously yield more effective and more
compassionate care to all.

37
 To nurture a new generation of professionals of life –long commitment dedication
knowledge, skills, wisdom, and values. To strive for public trust and maintain medicine’s human
& noble place among professions

To be globally competitive in health care and related businesses integration local culture
&ethos

Board of Directors:

Development

Employee training ties to improve skills, or add to the existing level of knowledge so that
the employee is better equipped to do his job, or to prepare him for a higher position with
increased responsibilities. Organizational growth need to be measured along with individual
growth.

Training refers to the teaching /learning activities done for the primary purpose of
helping members of an organization to acquire and apply the knowledge skills, abilities and
attitude needed by that organization to acquire and apply the same. Broadly speaking training is
the act of act of increasing the knowledge and skill of an employee for doing a particular job
Employees have became central to success or failure of an organization they are the cornucopia
of ideas. So in high time the organization realizes that the “train to retain is the mantra of new
millennium”. Training and Development play an important role in the effectiveness of
organizations and the experiences of people in the work. Training has implications of
productivity, health and safety at work and personal development. All organizations employee
people need to train and develop there staff. Such investments can take the form of employee’s

38
specialist training and development staff and paying salaries to staff undergoing training and
development.

However, investment in training and development is generally regarded as good

management practice to maintain appropriate expertise now and in the future. As a brief review
of the terms, training involves an expert working with learners to transfers to them certain areas
of knowledge or skills to improve in their current jobs. Development is a broad, ongoing multi-
faceted set of activities to bring someone or an organization up to another threshold of
performance, often to perform some job or new role in the future.

39
 (b) Fail to give correct weightage to a piece of work.

Weekly measurement is ideal.

(4) Employee performance calculation is supposed to be on the basis of performance with
respect to the goal set at the beginning of appraisal cycle. But in most of the cases

40
employee goals that are set (1) are not clear (2) not precisely measurable (3) work to be
done in future is not known clearly at the beginning of appraisal cycle and sometimes it
changes. So manager must have access to change the goal depending on the need.

BACKGROUND
A movement called ‘CARE’ took birth in the year 1997, when Padmashri Dr. B.
Soma Raju led a team of medical professionals to set up the first CARE Hospital. It
opened a new chapter in the history of health care. The driving force of Compassion,
Concern, Care, coupled with single minded objective - the recovery of the patient is been
the fountainhead of inspiration. Today, within a span of 10 years, CARE has emerged as
the leading name in health care and has earned a reputation for humanitarian and self less
service. But, most importantly, CARE has the undivided faith of millions.

The origins of CARE can be traced to 1983 when a team of cardiologists, led by
Padmashri Dr. B Soma Raju, set up a synergy for professional excellence in the
cardiology department of the Nizam’s Institute of Medical Sciences (NIMS) in
Hyderabad. The idea was to propel the cardiology department into one of the top centers
in the country. The synergy gave momentum to the purpose and accelerated the birth of
CARE 13 years later. The team collaborated with scientists to make healthcare affordable
through the development of indigenous medical technologies. It was the development of
India’s first coronary stent (Kalam-Raju stent) that inspired the creation of CARE
Hospital in 1997 to nurture a model that makes quality medical care affordable and
accessible.

At the outset, CARE earned accolades and appreciation from one and all for its
expertise in heart care. It continues to set new benchmarks not only in heart care, but also
expanded its horizons by becoming a leading Multi-specialty Health Care Provider.
Through the years, CARE has emerged as:
 The Single Largest Team of Cardiologists and Cardiac Surgeons in the country.
 A Multi-specialty hospital with round the clock availability of Cardiologists,
Cardiac Surgeons, Neurologists, Critical Care Specialists, Anaesthiologist, etc. 
 A hot-bed for many National and International Clinical Researches with close to
15 ongoing International clinical trials.  

41
  An Institution with strong ethos and unflinching devotion to Ethical medical
practice.
 Institute par excellence with continuous updating of medical knowledge and
putting it into practice. 
 A model hospital for High Doctor-Patient and Nurse-Patient Ratio.
 An enviable solution and a role model to the ever demanding patient satisfaction
through its physician-cooperative model.

VISION
Purpose: To provide care that people trust

Vision : To be a trusted, People centric, Integrated healthcare system as a model for

global health

Values:

Honesty & integrity: The Practice of Honesty Fortifies the character. Integrity means
doing right all times and willingness to live by the standards and beliefs of the organization.

Teamwork : A collaborative work ecosystem, where the collective efficiencies are

harnessed for delivering the best possible care.

Citizenship

Good governance and appropriate working relationship with all stake- holders, based on
compliance to laws and ethical practices.

Empathy & Compassion

The ability to understand the feelings of patients as well as employees, so that the
services delivered are humane and in a supportive work environment.

Equity

Mutual trust based on fair and impartial consideration of all professional matters so that
it fosters positive contribution towards the institutional purpose.

Education

42
 Continuous learning for the creation of a sustainable healthcare system, where
employees and the organization can grow together.

Dignity & Respect

Treat all with utmost regard and esteem so that it enhances respect and, in turn, a sense
of belonging.

OBJECTIVES
 Upgrade its education and Research wing on par with the international standards
and consequently develop healthcare solutions for under developed and
developing areas.
 Register a phenomenal growth by adding 5000 beds in the next five years.
 Offer unique platform to various partners and collaborators, both national and
international, to innovate in healthcare delivery systems, coverage systems like
microfinance/ micro insurance, medical education and research.
 Develop healthcare solutions for underdeveloped and developing countries.
 To develop comprehensive healthcare delivery model that suits our population.
 To develop centers of excellence in medical specialties
 To compromise the obsolete and seek excellence through effective and up-to-date
technology and service. 
 Undertake clinical practice through high-end education and research.
 Create a web of PCD clinics, corporate health plans, and associates program to
leverage the use of technology and gain access to remote areas.

Care Growth Story

 Operations commence at 50-bed Heart Institute at Nampally 1999

 32-bed Cardiac Care Centre established at Secunderabad

2000
 75-bed Cardiac Care Centre set up at Visakhapatnam Expanded
2001
Nampally unit at Hyderabad into a 200-bed CARE Hospital

43
  250-bed multi-specialty CARE Hospitals commissioned at
Banjara Hills, Hyderabad 2002
 Mini-cardiac facility commissioned at Bhubaneswar 2006
 Primary Healthcare Centre established at Lakkavaram
2006
Established Telemedicine Link with Mahabubnagar

 CARE Hospitals, Nagpur, set up with 105 beds

2007
 CARE Hospitals, Nagpur, set up with 105 beds 2008
 100-bed CARE Hospitals commissioned at Musheerabad,
Hyderabad 160-bed Ramakrishna CARE Hospitals established
at Raipur Clinic commissioned at Srinagar Colony, Hyderabad
2009
Cardiac facility at Bhubaneswar transformed into 100-bed
Aditya CARE Hospital
 100-bed CARE Hospital established at Surat A second unit with
75 beds established at Visakhapatnam 2010
 50-bed Galaxy CARE Hospital established at Pune 70 beds
2012
capacity added at Ramakrishna CARE Hospitals, Raipur
 CARE Clinic set up at Tarnaka, Hyderabad Commissioned the
2013
second 50-bed Ramakrishna CARE Hospitals at Raipur
 Dedicated CARE Outpatient Centre opens at Banjara Hills,
2014
Hyderabad
Care Logo
CARE aims at providing a holistic approach to healthcare. Our logo has been
crafted with this thought in mind. Through the explanation of our logo and identity, we
endeavor to help partners, branch organizations, shareholders and esteemed patients
understand CARE and its entity better.

Brand Identity and Name are largely dependent on the Logo. People identify an
organization with its Logo. It is a Logo that states in part the organizations ethics and
values. The following list explains the CARE Logo
 The bold rectangular surrounding the frame logo exemplifies the well defined
framework within which CARE operates.

44
 Each stroke that makes the pedestal identifies the multi-disciplinary teams
working at CARE.
 The Foundation under the field depicts a level field for all, and talks about
CARE’s transparent dealings.
 On top of the towering pedestal, the figure lending a helping hand signifies a
professional standing on excellence, while a figure he’s helping up represents a
patient down with disease.
 The color purple represents nobility and spirituality. And hence, it brings about
certain spiritual calmness to those who come in contact with it.

ACHIEVEMENTS
1. CARE Hospital, The Heart Institute established at Hyderabad - 200 beds - July
1997
2. 50 bed Cardiac Centre established in Secunderabad - June 1998
3. 100 bed Heart Institute set up in Visakhapatnam - April 1999
4. CARE Foundation got Defense Technology Spin-off Award from the Prime
Minister -August 1999
5. The Institute of Neuro - Sciences set up in Hyderabad - October 2000
6. The Institute of Medical Sciences with multi-specialty services with 350 beds at
Banjara Hills (Hyderabad) - October 2000
7. Padmashri awarded to Dr. B. Soma Raju and Dr. D. Prasada Rao, the founders
of  CARE - January 2001
8. Bharat Ratna, Dr. APJ Abdul Kalam, inducted onto the board - May 2001
9. India's first V-SAT based Public-Private Telemedicine system launched by Chief
Minister of AP - October 2001
10. Established a Community Model Hospital at Amalapuram - Jan 2002
11. Established a Primary Health Care Model Hospital at Lakkavaram - March 2002
Established a 50 Bedded Hospital at Vijayawada - December 2003 

ACCOMPLISHMENTS
 Accredited by The Joint Commission
 Primary Stroke Center certification by The Joint Commission

45
 Accredited Hip & Knee Replacement Surgery by The Joint Commission
 Heart Failure Accredited by the The Joint Commission
 First hospital in the United States to have a Cycle 4 Chest Pain Center with PCI
 First hospital in Northeast Tarrant County to have an O-Arm Navigation System
for computer-assisted spine surgery
 Named a Pathway to Excellence Hospital by the American Nurses Credentialing
Center for our excellent nursing environment
 North Hills Hospital is the official hospital of the Texas Motor Speedway and the
Cow town Marathon

HEART & VASCULAR SERVICES

 Chest Pain Center – Cycle 4 with PCI Accreditation
 Cardiovascular Catheterization & Interventional Lab
 Open-Heart Surgery
 Cardiac Rehabilitation
 Cardiac Intensive Care Unit (ICU)
 Cardiac Progressive Care Unit (PCU)
 Non-invasive Diagnostics
 Electrophysiology Lab

WOMEN'S SERVICES
 Complete Maternity Services, including Labor, Delivery, & Recovery Suites
 Newborn and Special Care Delivery
 Minimally Invasive, Computer-Assisted Robotic Surgery
 Obstetrics / Gynecology
 Prenatal and Childbirth Education Programs
 Women's Imaging Center/Mammography

INSTITUTE FOR ORTHOPEDICS

 General Orthopedics
 Total Hip Replacement, Hip Resurfacing, Anterior Hip Replacement
 Total & Partial Knee Replacement
 Minimally Invasive, Computer-Assisted Neck and Back Surgery

46
  Multi-disciplinary, Comprehensive Surgical Patient Treatment Program
PROGRESS
If there is one thing that we have demonstrated over the last ten years at CARE, it
is that a good conscience can translate into good business.
Despite altruistic ideals and a ‘soft’ business model, CARE has grown
aggressively.
 We started as a single – Speciality cardiac hospital; we are a multi-Speciality
hospital chain with eleven hospitals today.
 We started with 100 beds; we have a capacity of over 1,000 beds today.
 We started with 20 doctors and 200 support professionals; we have more than 200
doctors and 3,000 support professionals working with is today. 
 We treated 1,182 patients in the year of our launch and currently reached the
target of treating more than 26,095 patients this year.

Going forward, we intend to continue investing our resources ti improve the

accessibility of quality of health care and make it more affordable to the general masses.
We intend to do this through a self sufficient business model that will generate value for
all our stakeholders – our patients, shareholders, associates,

47
 DATA ANALYSIS & INTERPRETATION

Opinion on awareness of pay policy in Care Hospital

Opinion respondent No of respondents % of respondents

Yes 43 86%

No 7 14%

Total 50 100%

Figure-1

50
45
40
35
30 Yes
25 No
20 Total
15
10
5
0
No of respondents % of respondents

Interpretation:

According to the above table 86% of the employees of the

organization are aware of the pay policies and rest of the 14% of the
employees are not aware of that they may be part time employees or contract
based employees.

48
 1. Knowing about compensation packages in IT industries

Opinion response No of respondents %of respondents

Yes 33 33%

No 17 17%

Total 50 100%

Figure:2

50
45
40
35
30 Yes
25 No
20 Total
15
10
5
0
No of respondents %of respondents

Interpretation:

From the above table it is evident that 33% of the employees in the IT
industry are aware of their compensation packages in their industry and rest
of the 17% are not aware about the compensation packages which are in
practice in the industry.

49
 2. Basis for remuneration factor in Care Hospital

S. No Basis No. of respondents % of respondents

1 Previous work history 8 8%

2 Experience 34 68%

3 Length of service 5 5%

4 Other 3 3%

Total 50 100%

Figure 3
60

50

40

30

20
No. of respondents
10 % of respondents

0
ry ce ice r l
sto ien rv the ota
i r se O T
kh pe of
wor Ex th
us ng
Le
evio
P r

Interpretation:

In the above table it is evident that 8% of the employees remuneration

is provided on the basis of previous work history, 68% of the employees
remuneration is provided on the basis of experience, 11% of the employees
remuneration is provided on the basis of their length of service and 5% of the
employees remuneration is provided on other grounds.

50
 4.Base of compensation provided in the organization

S. No Base No. of respondents % of respondents

1 Hourly pay 0 0%

2 Annual pay 47 47%

3 Part time 2 02%

4 Contract 1 01%

Total 50 100%

Figure: 4

60

50

40

30 No. of respondents
% of respondents
20

10

0
Hourly pay Annual pay Part time Contract Total
1 2 3 4

Interpretation:

In the above table it is evident there are no employees who work an

hourly pay basis as mentioned 0% in the table, 47% of the employees work
on annual pay base, 2% of the employees work on part time base and 1% of
the employees work on contract basis.

51
 5. Pay package according to……. factor

S. No According to No. of respondents % of respondents

1 Market level 26 52%

2 Below market level 4 3%

3 Above market level 19 19%

4 Organization’s capability 1 1%

Total 50 100%

Figure: 5

30

25

20

S. No
15 According to
No. of respondents
% of respondents
10

0
1 2 3 4

Interpretation:

In the above table it is evident that 52% of the employees

compensation package is defined on the market level, 4% of the employees
pay package is defined below the market level, 19% of the employees
compensation package is defined above market level and 1% of the
employees compensation package is defined on organizations capability.

52
 6. Determination of incentives pay factor

S. No Determined by No. of respondents % of respondents

1 Manager 1 1%

2 Profit 18 18%

3 Seniority 5 5%

4 Performance 26 52%

5 Cost of living 0 0%

Total 50 100%

Figure:6
30

25

20

15

10
No. of respondents
% of respondents
5

0
Performance
Profit

Cost of living
Seniority
Manager

1 2 3 4 5

Interpretation:

In the above table shows that the incentive pay factor is determined
1% by the managers, 36% by the profit of the organization, 11% by the
seniority, 52% by the performance of the employees and cost of living is not
taken into the consideration to pay incentives.

53
 7. Kinds/Plan of incentives in the organization
S. No Kinds / Plans No. of respondents % of respondents

1 Organization portfolio 0 0%

2 Group incentive plans 0 0%

3 Individual plans 0 0%

4 All 3 above 49 98%

5 None 1 1%

Total 50 100%

Figure7
60
50
40
30
20
10
No. of respondents
0
% of respondents
All 3 above

None
Group incentive plans

Individual plans
Organization portfolio

Total

1 2 3 4 5

Interpretation:

In the above table it indicates that 98% of the employees are provided
all 3 kinds of incentives plans which are organization profit, group incentive
plan &individual plan and only 1% of the employees are not getting any kind
of incentives because, they are contract employees

54
 8. Satisfaction factor about fringe benefits
S. No Level of satisfaction No. of respondents % of respondents

1 Highly satisfied 6 6%

2 Satisfied 42 84%

3 Dissatisfied 2 2%

4 Highly dissatisfied 0 0%

Total 50 100%

Figure: 8
60

50

40

30

20
No. of respondents
10
% of respondents
0
Total
Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

1 2 3 4

INTERPRETATION

After studying the above table it is concluded that 84% of the employees are
satisfied with their fringe benefits, 6% of the employees are highly satisfied with their
fringe benefits, 2% of the employees are dissatisfied with their fringe benefits and none of
the employees is highly dissatisfied regarding their fringe benefits.

55
 9. Types of benefits factors
S. No Types of benefits No. of respondents % of respondents

1 Protection 0 0%
programme

2 Paid time-off 0 0%

3 Above two 48 96%

4 None 2 2%

Total 50 100%

Figure:9
60
50
40
30
20
10
No. of respondents
0
% of respondents
Protection programme

None

Total
Above two
Paid time-off

1 2 3 4

Interpretation:
In the above table, 96% of the respondents are provided both the
protection and paid time-off benefits and only 2% of the respondents are not
provided with either one of the benefits.

56
 10. Level of fringe benefits providing to the employees
Grades Scored points No. of respondents % of respondents

Grade – I 76 to 100 points 4 4%

Grade – II 51 to 75 points 43 86%

Grade – III 26 to 50 points 2 2%

Grade – III 1 to 25 points 1 1%

Grade – IV Total 50 100%

Figure: 10
50
45
40
35
30
25
20
No. of respondents
15
% of respondents
10
5
0
76 to 100 51 to 75 26 to 50 1 to 25 Total
points points points points
Grade – I Grade – II Grade – Grade – Grade –
III III IV

Interpretation:
Note: In the questionnaire, question No. 11 deals with the checklist about fringe benefits
which contains 20 benefits and each marking allocates 5 points. According to this,
interpretation has made. In the above table 6% of the respondents got 76 to 100
points, it indicates that these respondents are getting total fringe benefits from the
organization and these employees called as Grade-I employees who are top level
executives, 86% of the respondents have scored between 51 to 75 points, it indicates that
they are getting Grade-II employees benefits, 2% of the respondents have scored between
26-50, it indicates that they are getting Group-III employees benefits and 1% of the
respondents are getting Group-IV employees benefits.

57
 FINDINGS
 Employees at CARE HOSPITAL are feeling great about continuous growth of the
organization and they take pride in working for this organization.
 CARE HOSPITAL providing challenging assignments to the employees as it is
looking for its diversification.
 Employees feel satisfied with the policies, procedures and system; they feel that
they and given enough freedom at their areas of work.
 In CARE HOSPITAL the day to day goals are clearly explained to the employees.
 In CARE HOSPITAL the feedback is given on the performance of the employees
 In CARE HOSPITAL the employees of care satisfied by the nature of supervision.
 The management of CARE HOSPITAL believes that the employees are the most
important assets of the firm
 Employees potentials are explored to the their fullest creative ideas and
participation of employees are encouraged.
 In CARE HOSPITAL the management provides the training according to the
needs of the employees.
 Employees feel happily about their career growth their skills and knowledge are
properly utilized.

58
 CONCLUSIONS

After conducting an intense study on Care Hospitalin quality care (India) limited, The
following conclusions are derived. Organization should focus on the The Health & safety.
Employees whoever involved in  Care Hospital and what the company care and responsible on
them. Benefits provided by the organization are very good. Organization are very good to satisfy
the employee. Teamwork in the organization is very good. Organization are focus to provide
scope for the development. For the nurses and staff their provides session, induction
programmes. The relationship with superior at workplace is good .

59
 SUGGESTIONS

After conducting an intense study on Care Hospitalin quality care (India) limited Care
hospital can be improved by giving opportunity to each employees to express his ideas, create a
feeling of contribution for decision making, allow an amount of discussion about work with their
superiors create atmosphere of friendship and trust among the employees. The following
conclusions are derived. Organization should focus on the The Health & Safety program has
been elaborated in order to prevent the risk of work-related incidents and to facilitate the
intervention of the concerned during the construction job site. Employees whoever involved
in   Care Hospitaland what the company care and responsible on them. Hospital environmental
exposures are categorized in the same way as in other workplaces; there are chemical, physical,
biological, and psychological conditions. The hospital has many of the same exposures in these
categories, as do other workplaces; electrical equipment deficiencies, toxic, gases , weight to lift
or move, job motivation and responsibility, and poor housekeeping. Pre-placement medical
examinations should be given to all new employees. These examinations should include a
medical history, a thorough physical examination, laboratory tests (blood, urine, chest X-ray,
etc.), and special consultations as indicated by the history , physical special job requirements

60
 QUESTIONNAIRE

Name of the Employee :

Designation :
Department :
Date :

1 . Do you have Employers’ Liability insurance?

YES NO

2. Do you have a fire certificate for your premises?

YES NO

3. Do you have suitable and sufficient fire warning and Evacuation systems?

YES NO

4. Do you have suitable and sufficient fire extinguishing equipment and is this

Equipment maintained in a serviceable condition?

YES NO

5. Do you have suitable and sufficient first aid equipment? And assistance available?

YES NO

61
 6. Do you have a procedure for recording accident and reporting accidents,
YES NO
7. Are arrangement made and/or facilities available for first aid event of an accident or
Emergency?
YES NO
8. Is the workplace maintained in an adequately clean condition?
YES NO
9. Do you provide the correct work equipment for the job?

YES NO

10. How is staff aware of of your policy? ( )

a)staff handbook

b) Notice board

c) Induction training

d)individual copies

YES NO

11)Who is the first person to inform if you have an incident or identify a hazard
even if no-one
is injured?
a. Your supervisor 

b.  The director 

c.  First aider

 d.  Reception

12) If you are injured at work, no matter how insignificant it is, you must...

 a. Go home

62
  b.  Report it to your supervisor

 c.  Go to the hospital

 d.  Tell your family

13) do you have written health and safety policy?

a) YES B) NO

14) Do all employees / Workers have access to all protective equipments which is
necessary to

Do their job safety?

a) YES b) NO

15) Are all employees trained in the safe use of equipment to which they are exposed?

a) YES b) NO

63
 BIBLIOGRAPHY

Human Resource Management

The second edition of this successful textbook continues to provide a fresh and up-to-
date approach to human resource management. The Publisher is Pitman Publishers in the year
of 1997..

….................IAN BEARDWELL

LENHOLDEN

Employees Health & Safety

QUALITY CARE INDIA LIMITED, Banjara Hills

Care Convergence Centre

Senior Manager

……………Dr.ANIL KUMAR

Human Resource and personnel Management

QUALITY CARE INDIA LIMITED ,Banjara Hills

Care Convergence Centre

Senior Manager

……………T.NARENDAR

QUALITY CARE INDIA LIMITED, Banjara Hills

Care Convergence Centre

Manager

64
Websites

1. www.carehospitals.com

2. www.carefoundation.net.in/

3. www.ramkrishnacarehospitals.com

65