COMPENSATION AND BENEFITS MANAGEMENT

ASSINGMENT – 1

21MBR065
EXECUTIVE SUMMARY

Sri Balamurugan Industries Pvt. Ltd was established in 1976. They had started with 10 acres
of own salt field. Founded by Mr. P. Petchimuthu, the company has today turned out to be one
with 200 acres of salt field and an annual turnover more than 10 crore rupees. The firm
concentrates mainly in manufacture, trading and export of both edible and industrial grade
common salts. In addition to that they are manufacturing quality Plaster of Paris and also supply
marine gypsum in bulk quantity.

In this report I have tried to give an in-depth detailed look on the HR compensation benefits
and methods / approaches followed by Sri Balamurugan Industries Pvt. Ltd. I have to tried
to portrait my visit to the firm through this report which includes all the different aspects and
policies of the firm which I gathered during the discussion with the HR manager and the
employees.

The report covers how the employees are compensated and benefited by the companies HR
compensation benefits and methods. Even though it is not one of those huge companies where
the information is easily accessible, I tried my best to cover those in this report
INTRODUCTION

The organization where I have done my study is called Sri Balamurugan Industries
Pvt. Ltd. The organization is a professionally managed conglomerate always providing the
best service to its esteemed customers on a long-term basis. It was founded by Mr. P.
Petchimuthu who has a wide knowledge and experience in salt industry. He is in the salt
industry for more than 40 years. And Mr. P. Balamurugan - a young and energetic person giving
his dedicated work to this organization. He is a Management graduate from Manonmanium
Sundaranar University. He is taking care of manufacturing and export operations. Starting with
salt manufacturing, the company has expanded its domain to the manufacturing of Plaster of
Paris and Gypsum. The milestones in its success story includes 1976 - Salt Manufacturing 1978
- Gypsum Trading 1995 - Plaster of Paris Manufacturing. The administrative office is located
in the heart of the city and has close proximity to the Tuticorin Port. Every department of the
company is headed by experts in their respective domains. The entire office is networked with
sophisticated Information System. I had met with the HR manager and employees and learnt
about the HR polices regarding compensation and benefits which gave me a lot of insight to
the organizations Human Resource practice.

MISSION

The company is committed to manufacture products and render services of excellent

quality to meet customer requirements and expectations.

COMPANY PROFILE

Name of the company : SBM Sri Balamurugan Industries Pvt. Ltd.

Address 31A, Emperor Street, Tuticorin – 628 001.
Phone Number : +91 461 2326989
Email : customercare@sbmgroup.co
Website : https://www.sbmsalt.com/
Type of company : Private

Business Type : B2B, B2C

Name : Mr. P. Balamurugan
Memorandum of association : Nil
Year of establishment : 1976
Types of products/services : Salt manufacturing, Plaster of Paris and Gypsum,
Gypsum Trading

ORGANIZATONAL CHART

Managing Director

Accounts Manager Finance Manager HR Manager

Customer Relationship
Manager Marketing Head

Purchase Manager

Business Development
AO Cashier Manager

Clerk

Employee
HUMAN RESOURCE

"People are our most valuable asset" is a statement, which no member of any senior
management team would disagree with. The reality for many organizations is that their people
remain undervalued, under trained and underutilized. Human Resource (or Personnel)
management is the sense of getting things done through people. It is essential that these people,
the employees are compensated. With this opportunity, I myself have visited the (SBM) Sri
Balamurugan Industries Pvt. Ltd. premises to discuss and identify the methodologies and
approaches that the firm is following to satisfy and compensate the employees.

The Managers and the employee that I got to discuss with about the firm’s functions
and HR policies are,

Name: Kasilakshmi
Designation: HR Manager

Name: Munniyasamy
Designation: Business Development Manager

Name: Ravindran
Designation: Clerk

SBM HEAD OFFICE

The SBM office has total staff count of 20 and the factories staff’s count is 10. A total
of 30 staffs are all provided with the fixed salary as a basic salary. Depending on the role and
the requirements and needs of the roles the employees and staffs are compensated with
Incentives, allowances and bonuses. The office has three managers,
• Accounts Manager
• Finance Manager
• HR Manager

And also other staff’s like purchase manager, AO, cashier. The accounts manager, finance
manager and (CRM) customer relationship manager all earn between the range of 30,000rs –
40,000rs of fixed salary. Other three staff’s purchase manager, AO, cashier earn between the
range of 10,000rs – 15,000rs. All employees and staffs are provided with festive (Diwali)
Bonus every year.

The office also has a Marketing Head and a Business Development Manager. The Marketing
persons are the staffs who receive incentives with allowances included with bonus.

COMPENSATION METHODS

The types of compensation provided for all the staffs in the SBM firms are,

• Bonus
• Retirement
• Perks/Fringe
• Special Allowance

Bonus – It includes festive and Diwali bonuses provided by the firm.

Retirement – Senior employees during retirement are provided with gratuity. Very Senior
persons are asked to stop and are also provided with gratuity. All staffs are also provided with
PF Provident fund.
Perks/Fringe Benefits - All employees and staff (male or those who use personal vehicles in
office matters) are given Petrol Allowance in SAAMY Fuel with a set limit for weekly timeline.
Employees who are in need of travel in around the city to banks and other locations due to
office matters are given with office vehicles. Personal vehicle maintenance benefits are also
provided.
Special Allowances - Travel allowance which covers hotel and lodging costs, travel costs and
food costs. Employees are also provided with conveyance allowance like daily bata and bus
fare.
Medical Insurance – All employees and staff are given with ESI card with the hospital
insurance if sick or any other medical attention they can use the card in the ESI hospital.
Mobile Allowance – All staffs are provided with new android mobile phones upon joining the
company and their monthly data packs are covered by the company.
Employee Loans – All staffs can avail loans from the company. The company then deducts
the fee from the employee salary monthly.
The company also has yearly pay rises, but for the past two years it has been temporarily
stopped. The Marketing Head and Business Development Manager are provided with
incentives and travel allowances. A 3-month based incentive is provided based on target or
achievements accomplished by the persons. The female office staffs of SBM are provided with
bus fare amount as allowance.

SBM FACTORIES

The firm has four factories and total staff count of 10. The factories produce Plaster-
Of-Paris There are more than one hundred factory workers. The Factory Head determines and
makes decision based on production and resources avail and to be used, the factory head also
overlooks the overall factory functioning. There are four managers and supervisor and workers.
The managers are paid in between the range of 30,000 Rs and 40,000 Rs. Whereas the
supervisors are paid between the range of 10,000 Rs and 15,000 Rs. The labours are paid on
per day basis (time wages).

There are two sets of timing,

▪ 12 Hrs shift – 600 Rs

▪ 8 Hrs Shift – 500 Rs

The workers are paid with wages and bonuses as compensation and conveyance allowance for
reimbursement.

SALT PAN

The SBM Industries salt pan has a supervisor and more than one hundred labours. These
labours are also paid with wages (daily wages).

▪ Male – 500 Rs
▪ Female – 490 Rs

The labours have eight hours work time staring from morning 4am to 11am. The salt pan
supervisor gets a fixed salary including daily bata conveyance for travel around Rs 200.
LOGISTICS & TRANSPORT

The firm has its own transport division where they are operating Heavy trucks, Tippers
and Lorries which helps to deliver our products safely to our clients cost effectively on time.
The logistics division is overlooked by the logistic manager and he is also responsible for
dispatch planning. The logistics manager receives a pay in the range of 15,000 – 20,000 Rs.
There are four drivers working under the manager and are all paid in weekly wages. The wages
are calculated and provided on basis of kilometres covered and the number of times the trip has
been made. These drivers are also paid with bata’s and conveyance allowances and festive
bonuses. The drivers receive between 6000 Rs – 7000 Rs weekly.

Logistics Dispatch
Drivers
Manager Planning

The firm focuses on hygienic standard in packing and stitching. They supply the products from
0.5 kg to 1-ton jumbo bags. And also, the firm has its own storage points and this factor helps
in maintaining the quality of our salts and other salt chemicals.

CONCLUSION

Thus, the one-day visit to the organization Sri Balamurugan Industries Pvt. Ltd and the
through the discussion with the HR manager and the employees has helped me to explore
myself and get to know the organizational compensation benefits, methods and approaches of
the firm.