A

STUDY
ON
“COMPENSATION IN ORGANISATION”
AT
STANDARD GROUP OF COMPANIES
The project submitted
For the partial fulfilment of the requirements for the award of
Bachelor Degree in Business Administration

SUBMITTED BY
PEDDI SANKEERTHANA
Roll No.:201220684085

Under the Guidance of

Mrs. K. MARY LEENA

LECTURER
DEPARTMENT OF BUSINESS MANAGEMENT
SIVA SIVANI DEGREE COLLEGE
Kompally (v), Secunderabad---500014
(Affiliated to Osmania University)

Internal Guide Signature Principal Signature

 CHAPTER-1
INTRODUCTION

INTRODUCTION:
Compensation management is the discipline for determining employees appropriate pay and
benefits. A critical element in talent management and employee retention, it uses financial
and nonmonetary benefits to attract recruits, reduce turnover, spur performance and boost
employee engagement.

Compensation management is typically carried out by HR professionals, who are responsible

for ensuring that salaries and bonuses remain competitive and benefits change with the needs
of the workforce. The HR leaders in this role must gather and analyse internal and external
salary figures, demographic and economic statistics and other relevant information. They are
also keen to understand the complexities of benefits administration.

Compensation management is payment in the form of hourly wages or annual salaries

combined with benefits such as insurance, vacation, etc. that can positively or negatively
affect an employee’s work performance. It can be said that compensation is the “glue” that
binds the employee and the employer together and in the organized sector, this is further
codified in the form of a contract or a mutually binding legal document that spells out exactly
how much should be paid to the employee and the components of the compensation package.
The art and science of arriving at the right compensation makes all the difference between a
satisfied employee and a disgruntled employee. Though Maslow’s Need Hierarchy Theory
talks about compensation being at the middle to lower rung of the pyramid and the other
factors like job satisfaction and fulfilment being at the top, for a majority of employees,
getting the right compensation is by itself a motivating factor. Hence, employers need to
quantify the employee’s contribution in a proper manner if they are to get the best out of the
employee. The provision of monetary value in exchange for work performed forms the basis
of compensation and how this is managed using processes, procedures and systems form the
basis of compensation management. The aspect of how skewed compensation management
leads to higher attrition is discussed as well. This aspect is important as studies have shown
that a majority of the employees who quit companies give inadequate or skewed
compensation as the reason for their exit. Hence, compensation management is something
that companies must take seriously if they are to achieve a competitive advantage in the
market for talent.
NEED OF THE STUDY:

The study deals with the belief of the employees that the organisation will be satisfying in the
long run. The organisation will care about the quality of their work. They will create and
deliver superior value to the customer. They are more committed to the organisation. They
work for more productivity.

SCOPE OF THE STUDY:

The scope is limited to the employees working in the STANDARD GROUP OF

COMPANIES situated in Hyderabad and does not have any impact on the organisation.

RESEARCH METHODOLOGY:

DATA COLLECTION:

PRIMARY DATA:

The primary data is a fresh data collected in the form of close ended questionnaire.

SECONDARY DATA:

Apart from primary data collected, the data collected through the text books, records and
internet is used for study.

OBJECTIVES OF THE STUDY:

1. To identify the techniques used to provide fair compensation to employees in the

standard group of companies.
2. To analyse how standard group of companies retain top talent through competitive
compensation plans.
3. To motivate personnel for higher productivity in the standard group of companies.
4. To provide attractive salaries to employees in the standard group of companies.
5. To provide incentives, bonus and retirement savings to employees in standard group
of companies.
TECHNICAL SUPPORT:

The study of the research is taken through MS Excel for calculating and graphical
representation and also MS Word for documentation.

TOOLS AND TECHNIQUES:

SAMPLING:

SAMPLE SIZE:

Out of the total strength, the sample taken amongst employees i.e., 50 respondents.

SAMPLE TECHNIQUE:

The data was collected through empirical as well as descriptive research methods. And a
well-structured questionnaire was used to collect the data from the employees. The analysis
of data was done using Z-test.

LIMITATIONS OF THE STUDY:

1. The study is only conducted in Standard group of companies.

2. Due to limitation of the time the research could not be made in detail.
3. Due to confidentiality of some information accurate response was not revealed by
some of the respondents.
4. Some of the replies of the respondents may be biased.
5. Respondents had marked the answers in the questionnaires which may be socially
incorrect irrespective of their actual feelings.

CONCLUSION:

The study was conducted to understand and analyse the compensation management process at
Standard group of companies, Hyderabad. From the study it depicted that compensation is
important in every organisation which helps the management to make the appropriate
payment and benefits to the employees based on their performance. Organizations are now
very much concerned about the fact that happier the employee more will be the performance.
Hence, policies which have been abided based on the interest of the employees were been
taken as a major key in order to motivate the employees to work more effectively in the
organisation.
BIBLIOGRAPHY:

https://www.economicsdiscussion.net/human-resource-management/compensation-
management/32258

https://www.academia.edu/38859028/
A_Literature_Review_on_Compensation_Management_Practices

https://www.marketing91.com/compensation-management/
 CHAPTER-2

COMPANY AND INDUSTRY

PROFILE
COMPANY PROFILE:

ABOUT THE COMPANY:

The Standard Group of Companies is a turnkey equipment solution provider for the
Pharmaceutical and API / Bulk Drugs, Chemical, Agrochemical, Biotechnology, Life Science
and Food industry sectors.

The Standard Group is headquartered in Hyderabad, India and together with UK engineering,
innovation and service centre and is one of the leading manufacturers of Barrier Isolators,
Glass Lined Equipment, Hastelloy and Stainless-steel process equipment including Dryers,
Filters, Reactors, Receivers, Storage Tanks and Heat Exchange.

STANDARD GROUP PURPOSE STATEMENT:

The Standard Group of Companies has been built on delivering exceptional customer service;
better quality, faster lead times and excellent value for money. As such, it is of no surprise
that our purpose is totally customer service focused;

To Provide Exceptional Customer Service, Exceeding Customer Expectations in Quality,

Delivery & Value.
The Standard Group provides innovative, value-adding equipment solutions for all industry
sectors, with a speciality focus on the Pharmaceutical Industry where high integrity, material
traceability and excellent process equipment design to current Good Manufacturing Practice
cGMP is essential.

The Standard Group of Companies provides a range of world-class quality assured

equipment. Our Group of Companies is therefore your ideal, one-stop supply partner of
choice for all Pharmaceutical, Chemical and Food Processing Equipment.

We specialise in providing complete turnkey solutions with exceptional customer service and
design, manufacture, assemble, test, install and commission all types of process equipment
products from Reactors to Agitated Nutsche Filter Dryers, Thermal Control Units to Barrier
Isolators.
 1. Standard Glass Lining Technology: Glass Lined Equipment: Glass Lined Reactors,
Glass Lined Receivers, Glass Lined Storage Tanks, Glass Lined Flanges, Glass Lined
Valves, Glass Lined Pipework and Glass Lined Fittings 
2. S2 Engineering Industries: Stainless and Exotic Alloy Equipment: Pressure Vessels,
Agitated Nutsche Filter Dryers ANFD, Storage Tanks, Rotary Cone Vacuum Dryers
RCVD, Conical Dryers, Pipework, Reactors, Receivers, Conical Dryers, Distillation
Columns, Heat Exchangers, Pressure Nutsche Filters and Vacuum Tray Dryers VTD
3. Stanseals: Mechanical Seals, Component Seals, Single Spring Seals, Bearing Seals,
Seal Support Systems, Single Fluid Thermal Control Systems, Hot Water Systems,
Single Fluid Cooling Systems, Heat Exchangers and API Plan 54 Systems
4. Stanflow Engineering Industries: Ball Valves, Gate Valves
5. Stanpumps Engineering Industries: Dry Vacuum Pumps, Rotary Vane Pumps,
Roots Booster Pumps and Automated Pumping Systems for Solvent Recovery in
Reactor applications
6. Schematic Engineering Industries : Barrier Isolators, Containment Solutions,
Automatic Reactor Samplers, Glove Boxes, Safety Shower Cabinets, Candle Filter
Systems, Workstation Systems including blending, jet milling, weighing, Microniser
Barrier Isolators, Centrifuge Barrier Isolators, Tablet Packaging Barrier Isolators,
Capsule Filling Machine Barrier Isolators, Bottle Filling Barrier Isolators, Sterility
Test Isolators, Vacuum Tray Dryer Isolators, Pack off Isolators, API Barrier Isolators
and Formulation Barrier Isolators.

The Standard Group of Companies serves all industry sectors but specialise in the following:

Pharmaceutical, Bulk Drugs, Chemicals, Food, Beverage, Biopharmaceuticals,

Agrochemicals, Fine Chemicals, Biochemicals, Nuclear

Standard Group UK Engineering Facilities:

The Standard Group of Companies (UK) operates an Engineering division with design,
workshop, stock and assembly in a modern 5,000sqft facility in Sheffield, South Yorkshire.

The Standard Group UK headquarters is located in the centre of England at Junction 35A of
the main M1 motorway that connects Leeds direct to London. This location is ideal as it
means the majority of UK clients are within a 2-3 hour geographic reach, for service and
supply.

This Standard Group UK facility allows Factory Acceptance Testing (FAT) and customer
witness testing of the Standard Group's product before dispatch to UK, Europe and USA
clients.

Typical products supplied include our extensive Standard Group range of Barrier Isolators
including;

Reactor Barrier Isolators, ANFD Isolators, Containment Systems, API Isolators, Formulation
Isolators, Pack off isolators, Micronizer isolators, Sterility test isolators, Bottle filling
isolators, Centrifuge isolators, capsule filling machine isolators, vacuum tray dryer isolators.

Further products include, Safety decontamination showers, mechanical seals, labyrinth seals,
cartridge seals, seal support systems and dry vacuum pumps ... however all Standard Group
products are available and supported from the UK facility including Glass Lined Reactors
and Glass Lined Equipment.

Standard Group Indian Standard Group Manufacturing Facilities:

Ideally positioned to serve the growing chemical and pharmaceutical markets in India, the
Standard Group operates from NINE world class manufacturing facilities.

To the right is the 50,000 sqft facility of S2 Engineering Services located in Hyderabad,
India.
Below show some examples of the numerous offices and machine shop manufacturing
facilities in the other EIGHT facilities.

The Standard group has the in-house capability to manufacture stainless and exotic / nickel
alloy equipment and vessels up to 30,000 litres capacity and glass lined carbon steel
equipment and vessels to 16,000 litres. All are manufactured cGMP and cGAMP to national
and international standards including ASME, ANSI, DIN, PED, CE and ISO.

The Standard Group also has multiple satellite offices and service centres in Mumbai, Vizag,
Boroda, Chennai and Pune together with an UK office and service centre in Sheffield for the
processing, customer witness testing and management of domestic and export orders.

Standard Group Product Range:

The Standard Group of Companies design and manufacture a wide range of products and
provide a wide range of services, some of which are listed below.

Process Equipment:

Stainless Reactors, Hastelloy Reactors, Stainless Receivers, Distillation Columns, Storage

Tanks

Filters, Dryers and Blenders:

Agitated Nutsche Filter Dryers ANFD, Rotary Cone Vacuum Dryers RCVD, Rotary Vacuum
Paddle Dryers RVPD, Vacuum Tray Dryers VTD, Nauta Dryers, Conical Dryers, Pressure
Nutsche Filters, Candle Filters, Double Cone Blenders, V Blenders, Mixers and Agitators

Glass Lined Equipment:

Glass Lined Reactors GLR, Glass Lined Receivers, Glass Lined Storage Tanks, Glass Lined
Valves, Glass Lined Fittings, Glass Lined Pipework, Glass Lined Flanges, Glass Lined Heat
Exchangers
Pumps, Seals and Systems:

Dry Vacuum Pumps, Rotary Vane Pumps, Roots Booster Pumps, Mechanical Seals,
Cartridge Seals, Component Seals, Single Spring Seals, Bearing Isolators, Labyrinth Seals,
Seal Support Systems, Heat Exchangers, Thermal Control Units TCU

Barrier Isolators:

API and Bulk Drug Isolators, Formulation Barrier Isolators, Reactor Isolators, Vessel
Charging Isolators, ANFD Discharge Isolators, Pack off Barrier Isolators, Microniser
Isolators, Sterility Test Isolators, Bottle Filling Isolators, Capsule Filling Isolators, Centrifuge
Isolators, Sampling Isolators, Dispensing Isolators, Jet Milling Isolators, Multi Milling
Isolators, Vacuum Tray Dryer Isolators, Glove Boxes, Containment Systems, Weighing
Systems, Flexible Barrier Isolators, Positive Pressure Isolators, Negative Pressure Isolators

Safety Equipment:

Safety Decontamination Showers, Dynamic Pass Boxes, Static Pass Boxes

CLIENTS:

The Standard Group is guided by the encouragement of our customers. We truly believe in
continuous improvement and this is reflected in our business system, quality management
system, manufacturing methodology and human resource and infrastructure management.

We are pleased to have gained and retained our current prestigious clients and we welcome
with open arms all new clients, specifically those who look to enhance operator safety by
installing the next-generation of process equipment solutions and products supported by
exceptional customer service.
Standard Group Association Membership:

Some of the group companies within the Standard Group of Companies have relationships
and associate membership of various leading industrial authority bodies, who can offer
product, application and general advice and support to the Standard Group, where required.

Some examples of such membership for Barrier Isolator manufacturing at Schematic

Engineering Industries include;

 Member of American Glove Box Society (AGS)

 Member of International Society for Pharmaceutical Engineering (ISPE)
HEALTH AND SAFETY:

The Standard Group of Companies recognise that stakeholder health and safety is of utmost
importance. Please view or download our Health and Safety policy as this outlines and neatly
summarises the passion and commitment of the Standard Group Directors in this area.

To enable the Standard Group of Companies to fulfil its duties under Health and Safety
legislation it is our intention to ensure that responsibilities for health and safety matters are
effectively assigned, accepted and fulfilled by our organisation;

So far as is reasonably practicable, the Standard Group will ensure that;

 The company is organised and plans for health and safety effectively, ensuring safe
places and safe systems of work are provided and maintained.
 Staff are trained and competent to perform their duties.
 All risks that could arise from our activities or the activities of contractors, in our
employ, will be assessed and either eliminated or reduced to acceptable levels.

To achieve these objectives, the Standard Group will ensure that;

 The necessary resources are made available.

 Objectives are being met by monitoring and inspecting all work places.
 We review and report on safety performance and audit the implementation of the
health and safety standards and procedures.
 To develop and embrace a Continuous Improvement business culture with regards to
all aspects of health, safety and welfare.

The Standard Group has a number of manufacturing and engineering workshops involving
overhead cranes, mobile lifting devices, welding and fabrication, grinding, and laser cutting
for example. As such, to manage these operations and the safety of our employees, visitors
and contractors we operate a full health & safety management program, including policies
and procedures.
QUALITY AND COMPILANCE:

The Standard Group of Companies comprises of six primary manufacturing companies as

shown in the Standard Group section of this website.

Each Group company is committed to continuous improvement and operates a full Quality
Management System (QMS) accredited to ISO 9001:2015.

In addition, we provide products to CE, PED, ASME and GMP/GAMP international

standards in accordance with the client specification and destination country laws, regulations
and legislation. 

ORGANIZATIONAL STRUCTURE:

The four group ‘pillars of excellence’ include;

SCHEMATIC ENGINEERING INDUSTRIES:

Schematic Engineering Industries is one of the leading manufacturers of high containment

process equipment for pharmaceutical industries for both API and Formulations.

Established in 2008, our equipment is designed in-house using high-integrity European

technology and manufactured in our world-class 30,000sqft Indian state of the art facility in
Hyderabad, Telangana.

We specialise in the design, manufacture and installation of custom-built Barrier Isolators

and Glove Boxes in both rigid and flexible construction for high containment applications.
We also offer value-adding Annual Maintenance Contracts (AMC’s) for customers with
incumbent isolators from other suppliers, whereby we provide equipment on-site repair,
validation and warranty.

Our products can be supplied as standalone items or as integrated turnkey solutions including
the supply of the workstation process equipment such as multi-mill, blending, mixing, sieving
and weighing stations. We also offer innovative solutions including Powder Transfer Systems
and Bio clean room equipment such as;

 Dynamic Pass boxes,

 Static Pass Boxes,
  Sampling Booths,
 Dispensing Booths,
 Mobile Carts,
 LAF,
 RLAF,
 Bio Safety
 Air Mist Showers.

At the end of 2018, Schematic have manufactured and supplied more than 450 rigid and
flexible Barrier Isolator solutions to our esteemed customers across India and overseas
covering almost all the applications found in the Pharmaceutical-industry. Speciality Isolators
include;

 Microniser Barrier Isolators

 Tablet Blister Packaging Isolators
 Centrifuge Barrier Isolators
 Vacuum Tray Dryer Isolators
 Reactor Charging Isolators
 Agitated Nutsche Filter Dryers (ANFD's) discharge Isolators

Our innovative Barrier Isolator designs come in vertical or horizontal formats with sample
ports and downcomer continuous liner ports. To address the most demanding operator
applications we have also developed partially-rigid and flexible types of discharge isolators
for the optimum ergonomic performance and plant/operator safety. As such, we have
Isolators that

are successfully working in FDA / WHO approved pharmaceutical plants under most
stringent OEB 5 and 4.

STANDARD GLASS LINING TECHNOLOGY:

Standard Glass Lining Technology Pvt. Ltd. (SGL) is part of the Standard Group of
Companies and headquartered in Hyderabad, India. The company specialise in the
manufacture and supply of glass-lined equipment such as Glass-Lined Reactors, Receivers
and Storage Tanks.
Our company culture is to provide world-class, value-adding products underpinned with
exceptional customer service. As such, we have a network of sales/technical support offices
across India and engineering/product development facilities in India and the U.K.

Located in the State of Telangana, SGL are ideally positioned to serve the growing chemical
and pharmaceutical markets across India and overseas. We currently have over 2,500 Glass-
Lined Reactors installations, some of which operate in stringent and highly corrosive
applications such as Poly Aluminium Chloride (PAC). Our valued clients include;

 Aurobindo Pharma
 Dr. Reddy’s Laboratories
 Virchow Group
 Hetero Drugs
 Laurus Labs
 Mylan Laboratories
 CIPLA
 Granules India
 MSN Laboratories
 NATCO Pharma
 Jubilant Generics
 Gharda Chemicals Ltd
 Tagros Chemicals India
 Nagarjuna Agrichem
 Srikala Intermediate

The company operates from three manufacturing facilities totalling over 100,000sqft which
have the capability to manufacture vessels ranging from 63 litres to 16,000 litres capacity in
quantities of between 80-90 vessels/month.

SGL operate under a stringent ISO: 9001:2015 certified quality management system and
strictly follow best practice manufacturing processes using only the highest quality, traceable
raw materials.

We sincerely welcome customers from all over the world to visit our company to understand
and discuss applications and opportunities where SGL can provide exceptional client added-
value products and services.
STANPUMPS ENGINEERING INDUSTRIES:

Stanpumps Engineering Industries is part of the Standard Group of Companies, with

manufacturing and R&D facilities in the UK and India.

We design, manufacture, assemble and test a range of innovative pumps, specialising in high
performance dry running vacuum pumps. Our product range includes;

Single & Double stage oil lubricated Rotary Vane vacuum pumps

Roots Booster pumps

Dry Multi stage lobe and claw vacuum pumps

Automated pump systems and custom-made pump solutions

Our Dry multistage lobe and claw vacuum pumps have some unique, value-adding features
and have won favour with many prestigious pharmaceutical companies, specifically replacing
inefficient rotary screw pumps on reactor solvent recovery operations.

We sincerely welcome customers from all over the world to visit our facilities and review the
quality of our products, operations and exceptional customer service levels.

S2 ENGINEERING SERVICES:

S2 Engineering Services is part of the Standard Group of Companies and is the largest
manufacturer of bulk drug and pharma equipment in India.

The company was established in 2005 and is headquartered in a 55,000sqft, ISO9001:2015

world-class facility in Hyderabad, Telangana, which has the capability to manufacture vessels
ranging from 2 litres (for Kilo labs) to 30,000 litres in capacity.

The company designs and manufactures innovative, value-adding products to internationally

recognised ISO, DIN and ASME standards and is a leading manufacturer of stainless steel
and nickel/exotic alloy process equipment such as Dryers, Filters, Reactors, Vessels and
Storage Tanks.
We specialise in the supply of bulk drug pharma equipment for new build and expansion
projects across India and overseas and as such offer a full turnkey supply service including
installation, commissioning and extended equipment warranty, as required.

Our company purpose is to deliver value-adding products to our customers with exceptional
‘industry leading’ service levels to ensure sustainable business success. We are proud to have
supplied equipment solutions to many major reputed companies such as;

 Dr. Reddy’s Laboratories

 Hetero Drugs
 Mylan Laboratories
 Macleods Pharma
 Laurus Labs
 Suven Life Sciences Ltd

We design our products in-house in both our UK and Indian facilities and as such can meet
the requirements of any international standard or customised equipment specification to suit
the client’s application requirements.

As part of our client service commitments on major projects, we maintain stock of critical
parts including part and/or fully assembled equipment to support unpredictable emergency
shut-downs and/or rapid project delivery programs.

S2 adopts a continuous improvement culture and has an ongoing commitment in achieving

the highest performance standards in all aspects of Health, Safety and Environment. This is
underpinned by a comprehensive training program for our staff and employees which aims to
provide an excellent and safe working environment.

We sincerely welcome customers from all over the world to visit our company and discuss
their project requirements with our application technical experts.
Client Value Adding Solutions:

In addition to providing innovative equipment from our standard product range the Standard
Group of Companies offer a range of value-add services, some of which are detailed below.

Design & Customisation

 URS (User Requirement Specification) - Client specific design and product

configuration (DQ - Design Qualification)
 3D CAD model develop and client exchange and PAT (Process Analytical
Technology)
 Equipment modularisation - future-proofing your operations with incremental 'bolt-
on' modules as your business needs develop.

Ergonomic Trials & Operator Engagement

 Life-size wooden/proto-type barrier isolator development

 Operator ergonomic testing for sustainable operation and comfort. Also tests to ensure
all isolator areas are cleanable (CIP/SIP)
  Full client engagement and design specification (DQ) sign-off before manufacture
commences.

Factory Validation Testing

 FAT / IQ testing - The partial commissioning & qualification of equipment and/or

systems prior to their shipment from our facility
 Hard and soft copies of documentation packs
 21 CRF 211 - cGAMP and cGMP reviews and auditing.

Installation & Commissioning

 SAT / OQ testing - Inspection and/or dynamic testing of the systems at the

manufacturing site to qualify the equipment to the DQ / URS
 Provision of skilled and experienced technical engineers and quality assurance
personal to conduct PQ (Performance Qualification)
 Development of Standard Operating Procedures (SOPs) with the engagement of the
client and their needs
 Client/Operator on-site and off-site training (theory and practical)
 After sales training and Asset Healthcare Management options including MQ
(Maintenance Qualification)

Isolator Overhaul

 Complete overhauling of in-field isolators (Schematic designs and other manufacturer

designs)
 Change Isolator worn parts and procure all necessary new parts/spares
 Full Health testing: Leak test, light and lux test, air changes test, laminar air flow test,
noise & vibration test and occupational exposure limit test.
 Recommissioning of the equipment.

Asset Healthcare Management

Standard Group also provide an Asset Healthcare Management service, designed as a

contractual after-sales program dedicated to ensuring we use our expertise and technology to
help keep the clients purchased asset in a premier operating condition, for its useful life
expectancy.

Examples of such may include; Dry Vacuum Pumps Mechanical Seals and Sealing Systems
Barrier Isolators Reactors, Agitators, Blenders, Dryers, Filters Please do not hesitate to
contact us for further information on our Asset Healthcare Management service.

INDUSTRY PROFILE

MEANING OF MANUFACTURING COMPANY:

Manufacturing refers to a large-scale production of goods that converts raw materials, parts,
and components into finished merchandise using manual labor and/or machines. The finished
goods can be sold directly to consumers, to other manufacturers for the production of more
complex products, or to wholesalers who distribute the goods to retailers.

A manufacturing business is any business that uses raw materials, parts, and components to
assemble finished goods. Manufacturing businesses often employ machines, robots,
computers, and humans to produce the merchandise and typically use an assembly line,
which enables a product to be put together step by step, moving from one workstation to the
next.

Manufacturing businesses can choose to sell their products directly to consumers, to other
manufacturers, to distributors or to wholesalers.

Manufacturing is an integral and huge part of the economy. It involves the processing and
refinement of raw materials, such as ore, wood, and foodstuffs, into finished products, such
as metal goods, furniture, and processed foods.

Converting these raw materials into something more useful adds value. This added
value increases the price of finished products, making manufacturing a very profitable part
of the business chain. Some people specialize in the skills required to manufacture
goods, while others provide the funds that businesses need to purchase the tools and
materials.
As noted above, efficiency in manufacturing can lead to higher productivity and cost
savings.

STANDARD GROUP SERVICES & EXPERTISE:

The team at the Standard Group has decades of industrial experience designing,
manufacturing and installing innovative, technologically advantageous and commercially
attractive process equipment.

Their knowledge spans practically all applications in the Pharmaceutical and API / Bulk
Drugs sector from scaled pilot plant laboratory equipment to integrated barrier isolators for
production tablet coating and capsule filling machines.

In addition to the Standard Group internal team of professionals, we have a team of on-site
engineers who perform installation, commissioning and site acceptance testing (SAT’s) with
the client. We extend our value adding on-site services to include ‘equipment healthcare’
management contracts involving the annual service, repair and certification of barrier
isolators of any manufacturing origin.

INDUSTRY SOLUTIONS:

1. PHARMACRUTICAL:

The pharmaceutical industry develops and manufactures pharmaceutical substances (drugs)

for use as medications.

As drugs generally enter the human body, either by swallowing, intravenously, intramuscular
or subcutaneous, there is a high-risk potential for human harm. Therefore, the industry is
tightly controlled and is subject to a variety of laws and regulations that govern the patenting,
testing, safety, efficacy and marketing of the drugs.

All decisions on equipment, processes and setup can increase the potential risk of immediate
or eventual human harm in addition to influencing both the efficiency of research and
efficiency of production. A compromise in either quality or quantity is unacceptable in the
pharmaceutical sector therefore manufacturing plants need to align themselves with trusted
suppliers with the appropriate technical expertise and experience.

The Standard Group is a trusted supplier to many national and international pharmaceutical
clients, having extensively supplied the sector for many years. We have supplied the largest
aseptic isolator system in India, custom designed and manufactured for a prestigious client in
Chennai.
 2. BIOPHARMACEUTICAL:

The biopharmaceutical industry processes any medicinal product manufactured, extracted or

semi synthesized from a biological source. This includes vaccines, allergenics, gene
therapies, tissues and living cells used in cell therapy.

Unfortunately, there are many infectious diseases in this world. This includes diseases such
as Ebola, Hepatitis B and C, Flu, Measles, Rabies, Malaria and Tuberculosis.

On top of these, diseases such cancer, autoimmune and cardiovascular diseases continue to
grow.

... and on top of these there is a strong emergence of new diseases such as coronavirus, sars
and swine flu.

As a result, Biopharmaceuticals have emerged as an important therapeutic class for the

treatment of such diseases, specifically where tradional synthetic drugs either do not respond
or respond poorly.

Owing to these reasons, the biopharmaceuticals are expected to witness rapid surge in the
demand in the coming years. As the demand for biopharmaceuticals rises, the equipment and
consumables used in their production are likely to witness high growth.

Like pharmaceutical and food industries, the biopharmaceutical industry is heavily

regularised given the dangers of contaminated or incorrect produce entering the human body.
Therefore, selecting the correct equipment supply partner, with suitable quality assured
operations controlled by a modern ERP business system is mandatory.
The Standard Group is such a supply partner having supplied a range of complex, manual and
fully controlled automated systems to help eliminate process contamination risk whilst
ensuring full operator safety. Our business systems ensure full material traceability and
document control; essential for supplying the Biopharma sector.

Our barrier isolators and associated process equipment are highly suitable for processing
biological medicinal products, therapeutic biological products and engineered
macromolecular products such as protein and nucleic acid–based drugs.

3. CHEMICALS:

 Agrochemicals:

Agrochemical is a generic term for the various chemical products used in agriculture.

Many agrochemicals are toxic hence the use of agrochemicals is highly regulated with
significant penalties for misuse. Companies in this field must ensure that they have
emergency clean-up equipment, safety equipment and procedures in place for handling,
processing and disposing of such chemicals.

The Standard Group are experts in providing plant safety and processing equipment for
hazardous and toxic substances. In addition to our range of standard solutions, we design and
develop many bespoke solutions for our clients as they seek to push their production
envelopes.

 Biochemicals:

The Biochemical industry sector is the science of biochemistry or biological chemistry and
relates to the development of chemical processes relating to living organisms. Biochemistry
has become so successful at explaining living processes that now almost all areas of the life
sciences from botany to medicine are engaged in biochemical research.

Much of biochemistry deals with both organic and inorganic structures of biological
macromolecules such as proteins, nucleic acids, amino acids, carbohydrates and lipids. The
findings of which are applied in;
 1. medicine; causes and cures of disease
2. nutrition; human health
3. agriculture; soil and fertilizers and ways to improve crop cultivation, crop storage and
pest control

The Standard Group can supply high-integrity process equipment for the Biochemical
industry sector, including isolators and containment systems with integral sieving, blending,
multi-milling, jet milling and weighing operator workstations.

 Commodity Chemicals:

Similar to the Bulk Drugs Industry, Commodity chemicals (or bulk commodities or bulk
chemicals) are a group of chemicals that are made on a very large scale to satisfy global
markets. In India, this market is vast.

Commodity chemicals are primarily differentiated by their bulk of their manufacture,

therefore if things go wrong in the manufacturing process and contamination enters the
product, the implications can be far reaching. Therefore, the correct equipment supply
alignment with a reputable supplier such as Schematic Industries is a very sensible course of
action as a value-adding benefit of a reliable piece of equipment far outweighs that of a
cheaper item which uses inferior components of an untrustworthy supply.

Furthermore, stakeholder health and safety is of prime importance. By its nature, the
Chemical industry is an increased risk environment not only to operatives, employees and
visitors to the chemical plant from the chemical itself, but also the environment impact of a
failed process and the resulting penalties imposed.

The Standard Group products are customized to suit your needs and you can depend on us to
deliver you not just regular equipment but solutions that can help your plant meet all the
appropriate standards and prosper under growing regulatory and legislative pressures.

 Fine Chemicals:
Fine chemicals are complex, single, pure chemical substances, produced in limited quantities
in multipurpose batch processing plants. They are defined by exacting client specifications
and manufactured by multi-step batch chemical or biotechnological processes, typically used
for further processing within other sectors of the chemical industry.

Fine chemicals are classed as building blocks, advanced intermediates or active ingredients
(AI's) and carry a high value given their limited availability. They are commonly used as
starting materials for proprietary products in the specialty chemicals, pharmaceuticals,
biopharmaceuticals and agrochemicals sectors.

Again, this industry is heavily regulated. The basic design, layout and the type of equipment
that Fine Chemical processing plants and laboratories use has become practically the same all
over the world. However, what differentiates suppliers is their conformity to cGMP and
cGAMP and the innovations and importance they place to ensure the health and safety of the
plants operators. The Standard Group excel in this area and is a natural supplier of choice for
such equipment.

 Speciality Chemicals:

Speciality chemicals are chemical products which provide a wide variety of effects. These
'performance' effects make these chemicals of great importance to other industry sectors such
as automobile, aerospace, food, cosmetics, agriculture, manufacturing and textiles.

Categories of speciality chemicals include adhesives, agrochemicals, cleaning materials,

cosmetic additives, construction chemicals, elastomers, flavours, food additives, fragrances,
Industrial gases, lubricants, polymers, surfactants and textile auxiliaries.

By their specialist nature, kg to kg when compared to Bulk Chemicals, this category of

speciality 'performance' chemicals is very expensive and therefore the smallest error in the
manufacturing process can result in a high cost to the plant. Confidentiality and protection of
Intellectual Property is typically vital in this specialties market, where client’s formulations
and product compositions are often proprietary.

The Standard Group equipment is widely used in the speciality chemical sector, in batch
production and in R&D facilities where the physical and chemical characteristics of the
single molecules or the formulated mixtures and compositions of molecules is understood and
developed.

4. PAINT AND COATINGS:

Industrial coatings are extremely useful products as they protect or aesthetically improve
substrate materials such as wood, metal and concrete. Hence coatings are typically defined by
their protective and aesthetic properties.

The most common use of industrial coatings is for corrosion or erosion control of steel or
concrete. Such coatings are applied by either a brush, roller or spray technique to ensure an
even coating thickness, essentially providing a covering without "fish eyes", craters or other
surface irregularities. Lastly, the colour must be the consistent in each batch manufactured as
the very slightest colour shade difference can cause huge financial implications to the
customer.

Each coating is usually made of various materials (ingredients) such as Resins, Solvents,
Pigments and Additives, which are processed by heating, mixing and/or filtering in a manner
so that the resulting substance does not;

 separate over time,

 maintain adhesion to the substrate,
 does not peel and has a good consistency, without gels or skins.

Common coatings include epoxies, polyurethanes, polysiloxanes and zinc-rich primers which
are used in all industrial sectors from Aircraft and aerospace coatings (both civil and military
aircraft and helicopters) to offshore coatings, automotive and vehicle coatings to domestic
house interior decoration including wall and ceiling paint. Irrespective of the application, the
vast majority of advanced coatings are the subject of strict manufacturing quality process
controls involving advanced, multi-tasking equipment.

The Standard Group offer a range of standardised, customised and advanced process
equipment for the paint and coatings industry sector. Quality improvements are possible
when the process is controlled using good processing equipment.

Some examples of the products we have (and can) manufacture for this sector include;

1. Portable Paint and Granulate Containers

2. Agitated Nutsche Filters and Filter Dryers
3. Stainless Steel Reactors

PRODUCTS MANUFACTURED BY THE COMPANY:

1. Agitated Nutsche Filter Dryers:

The Standard Group offer a full range of Agitated Nutsche Filter Dryers (ANFD's) from 5
litres to 12,000 litres capacity.

Our ANFD technology provides both agitation, filtration and drying operations within the
same equipment therefore helping to improve plant operational processes efficiency as well
as reduce operator exposure to potentially harmful substances.

Our modular ANFD construction allows us to offer hundreds of customised equipment

configurations, as standard, to suit specific client applications. We can also provide ANFD's
with barrier isolator (Glove box) technology for contained discharge and/or charging
operation.
 2. Rotary Cone Vacuum Dryers:

The Standard Group of Companies manufacture a full range of Rotary Cone Vacuum Dryers
in both standardised and customised configurations.

Our Rotary Cone Vacuum Dryers (RCVD's) are completely jacketed for optimum dryer
efficiency. Heat transfer fluid, typically hot water, steam or vapour, is circulated around the
conical jacket for even product drying through conduction. Standard can also supply a
supporting Thermal Control Unit if plant services are not available.

As the Standard dryer rotates, given the shape of the vessel, the entire product batch is
thoroughly mixed and high speed dried. This blending and inter-folding process maintains
uniform temperatures and eliminates any probability of product re-condensation due to cold
spots. We then use a high vacuum to draw off any remaining moisture while the product is in
motion and thereafter the batch is easily discharged and cleaned given the conical shape of
the vessel.

Standard has supplied hundreds of RCVD's for batch production in the Pharmaceutical, Food
and Chemical sectors. Click here for technical supply information.
 3. Vacuum Tray Dryers:

Within the Standard Group of Companies, we design, manufacture and supply Vacuum Tray
Dryers (VTD's) from laboratory to production scale models.

We customise our VTD's, where needed, to suit client space/application requirements and
supply both circular and rectangular drying systems along with a vacuum pump system to
fulfil the operational requirements.

Our products are typically manufactured from stainless steel however where required, the
contact and vapour parts can be finished with high corrosion resistant materials including
Teflon plastic coating, StanCoat and Alloy C276 (Hastelloy).

Our Vacuum Tray Dryers can also be supplied with an integral barrier isolator system.
 4. Glass Lined Reactors:

SGL manufacture a range of Glass-Lined Reactor designs in a variety of materials,

specifically stainless steel and carbon steel.

There are two types of ranges 'CE' and 'AE'. CE has a mono-block construction whereas AE
has a two-part construction, but they are both manufactured to exacting standards and
international specifications.

Dimensionally designed to DIN 28136 our modular product range permits a number of
optional variations to be added to the standard configuration.
 CHAPTER-3
REVIEW OF LITERATURE

REVIEW OF LITERATURE

COMPENSATION MANAGEMENT

INTRODUCTION

Compensation management is an integral part of the management of the organization. It

contributes to the overall success of the organization in several ways. Compensation
management, also known as wage and salary administration, remuneration management or
reward management, is concerned with designing and implementing total compensation
package for the employees. In the present era where high employee turnover and low
retention rate turn into biggest nightmare for the entrepreneurs, a sound compensation policy
for the organization plays a great role in case of providing relief to them. Concepts like
performance- based pay system, knowledge-based pay system, market-based pay system are
introduced by the employers to pay the employees in different format. Apart from this
various offers like commission, profit sharing, health insurance schemes are also provided in
order to attract employees. Some organizations also prepare separate set of executive
compensation policy for their top level executives, so that they can attract and hire them in
this time of cut throat competition. Various components of compensation such as
wage/salary, incentives, benefits, perquisites are properly taken into consideration by the
organization while designing the compensation policy for the employees. The sole objective
behind this is to make the employees satisfied in terms of compensation, which is the major
role player in influencing their professional and personal life. Because it is money, which
motivates the employees more, to perform better and better in the organization and through
this they get a status and recognition in the society.

MEANING OF COMPENSATION:

Compensation refers to monetary payment given to an individual in exchange for their

services. In the workplace, compensation is what is earned by employees. It includes salary
or wages in addition to commission and any incentives or perks that come with the given
employee's position.

DEFINITIONS OF COMPENSATION MANAGEMENT:

1. Dale Yoder: "Compensation is paying people for work.

2. Edwin B Flippo: The function of compensation is defined as the adequate and equitable
remuneration of personnel for their contributions to the organizational objectives."

3. Benham: Compensation is the value of work of the employees according to the agreement
between employer and employee.

4. John Dunlop has explained the concept of compensation / wages from three stand points:

A. wages determined the standard and volume of services of employees of market.

B. Compensation influences distribution of employment of industries, firms and professional
organizations by impact on cost and

C. Compensation has performed some important activities like supply of active media
through which technological facilities have been scattered through the economy.

COMPONENTS OF COMPENSATION MANAGEMENT:

1. Wage or Salary:
Wage:
The term wage refers to the remuneration paid to the workers appointed on hourly, daily or
weekly basis in return for the service rendered.

It varies according to physical and mental requirement of the job. Wage may be minimum
wage, fair wage and living wage.

i. Minimum Wage:
It is that wage which is sufficient to meet the basic need of a worker and his family. This
minimum wage has to be paid to the worker irrespective of the capacity of the industry to
pay. The Committee on fair wage has defined minimum wage as – “the wage must provide
not only for the bare sustenance of life, but for the preservation of the efficiency of the
workers. For this purpose, minimum wage must provide some measures of education,
medical requirements and amenities”.

ii. Fair Wage:

According to committee on fair wage “fair wage is the wage which is above the minimum
wage but, below the living wage”. It is fixed between the minimum wage and capacity to pay
by the industry. The lower limit of the fair wage is the minimum wage; the upper limit is set
by the capacity of the industry to pay.

Fair wage depends on several factors like:

(a) The productivity of labour

(b) The prevailing rates of wage in the same or neighbouring localities.

(c) The level of national income and its distribution.

(d) The place of industry in the economy of the country.

Thus, fair wage is determined on the basis of capacity of the industry to pay and region in
which industry is located.

iii. Living Wage:

It is the wage that provides some of the comforts of life. It provides certain amenities
considered necessary for the well-being of the worker. According to Fair Wage Committee
“the living wage should enable the male earner to provide for himself and his family not
merely the bare essentials of food, clothing and shelter but also a measure of frugal (using
only as much money or food as is necessary) comfort including education for children,
protection against ill health, requirements of essential social needs and measure of insurance
against the more important mis-fortunes including old age”.

Salary:
The term salary refers to remuneration paid to the employees appointed on monthly or annual
basis in return for the service rendered. Thus it refers to monthly rate of pay irrespective of
number of hours put in by employees.

Take Home Salary:

It is the net amount of salary received by an employee after making all the deductions
towards the payment of income tax, LIC premium and contribution to P.F. etc.

2. Dearness Allowance (DA):

Under section 3 of the Minimum Wages Act, DA is described as cost of living allowance. It
is given to protect the real wages of workers during inflation. In India it has become integral
part of the wage system.

Along with DA other allowances like City Compensatory Allowance (CCA), House Rent
Allowance (HRA), Medical Allowance (MA), Education Allowance (EA), Conveyance
Allowance etc., also form the part of compensation package.

However, inclusion of all these allowances in the compensation depends on nature and type
of job, contents of job, place of job, terms and condition of appointment, capacity of
employer etc.

3. Incentives:
Incentive is a reward paid in addition to wages whether monetary or not that motivates or
compensates an employee for performance above the standard. Payment of incentive depends
on productivity, sales and Profit of the organization.

4. Fringe Benefits and Perquisites:

Fringe Benefits:
It is a general term used to describe any of a variety of non-wage or supplemental benefits
that employees receive in addition to their regular wages. These include such employee
benefits as provident fund, gratuity, medical care, hospitalization, accident relief, paid
holidays, health and group insurance, pension etc.

Perquisites (Perks):
Perquisites also called perks are the special benefits made available only to the top executives
of an organisation. These may include company car, furnished house, stock option scheme,
club membership, paid holidays etc.  

FUNCTIONS:
Compensation management’s objective is to hire competent persons, to ensure the internal
and external equity concept to improve employee’s satisfaction and to retain these valuable
human resources or assets.
The main functions of Compensation Management are:
(1) The Equity Function
(2) The Welfare Function
(3) The Motivation Function
(4) The Retention Function.
(1) The Equity Function – It is the first and foremost important function of compensation
which ensures that the employees are fairly paid and that their worth is appropriately
compared. This function ensures that more difficult jobs are paid more and that they are fairly
compensated in comparison to similar jobs in the market.
(2) The Welfare Function – This function is to take care of their psychological and social
need satisfaction. The employees worry about the family, and the liability should be reduced
and their self-esteem needs should be met to allow them to work without tension or unwanted
stresses.
(3) The Motivation Function – The motivational function is to encourage an employee to
take further challenges, perform better and develop oneself for superior positions. This
function, therefore, takes care of career plans and training and development activities.
(4) The Retention Function – Today, human resources are being considered as a valuable
asset to the organization and because of retaining and developing the knowledge bank, the
retention of employees has become an important function of compensation management.

NEED AND SIGNIFICANCE OF COMPENSATION:

 Compensation refers to the rewards, an employee gets after offering his/her mental
and physical efforts, wherein he/she compares his/her worth. Any dissatisfaction may
result into a conflict or a dispute. This dissatisfaction not only affects the performance
of the employee but also imbalances the equity between human capital investment and
expected returns to the organization.
 As such it is a most sensitive issue in any organization or HRM as employers,
employees and the government have observed that 95% of the industrial disputes in
any organization in India are related to wage/salary or method of payments.
 Compensation decisions have become more complex in this competitive age because
of an unbalanced demand and supply ratio. The HRM of every organization is
required to make some systems to scrutinize the wage and salary differentiations or
disparities to ensure a motivated environment in the organization.
  The perceptions of employees and employers about compensation are changing and
the emphasis is being laid on how important is pay for the employees and how it
affects investment to hire competitive employees and how it compares with three
main factors, namely, job contents, work environment, and pay attraction to retain an
employee.
 The expensive growth of some of the sectors like IT, Telecom, BPOs and financial
institutions has triggered off huge demand for talent at all levels. The consultants and
HR professionals are continuously surveying and studying the paradigm shifts of
concepts, perceptions and the need for revising the compensation systems.
 The paradigm shifts from standard wage and salary to compensation or cost to the
company is clearly visible in today’s hiring practices.
 The satisfaction or dissatisfaction is a gap between the expectations of an employee
and the feeling or the experience of worth. This feeling or experience is an outcome of
efforts offered to perform, comfort felt at work place, cushion for inflation in
compensation, and appreciation perceived by the employee. HRM, therefore, needs to
design policy and practices to develop willingness to work and satisfaction toward
worth.
 Secondly, the compensation policy and the structure must be made attractive and
adjustable so as to attract the talents, motivate the employees to use their hidden
potentials, emphasize the need of self-improvement, and most importantly to retain
the employees as they are the valuable asset to the organization.

Types of Compensation:

There are three significant types of compensation for an employee that should be an integral
part of efficient Compensation Management Systems-
1. Indirect compensation

All the non-monetary benefits given to the employees fall under this category. Moving
expenses, health insurance, paid leave, childcare, and retirement programs all fall under this
compensation category.

2. Nonmonetary compensation

All the intangible values that an employee receives from his employer falls under this
category. Career advancement, career development opportunities, recognition in the
organization, good working condition all come under the non-monetary compensation
category of compensation.

3. Direct compensation

The basic salary and the health benefits that an employee receives from his employer in
exchange for his efforts are part of the direct compensation. The basic salary can include
performance-based pay or annual salary or hourly pay. The money received can be in the way
of commission, wages, bonuses, and salaries. They also include payment for holidays,
medical benefits, city allowance, house rent allowances, provident funds, and conveyance.

Features:
Some of the notable features of the aforementioned compensation management software are-

 Salary & commission tracking

 Budgeting, forecasting, and approval workflow
 Performance metrics, long-term planning, benefits deferral
 Executive compensation
 Import of updated real-world salary and comp data
 Market pricing analytics, compensation research
 Job description authoring guidance (e.g. competence, salary)
 Salary review and policy/guideline compliance control
 Competence and job matching
 Flight risk analysis

 Custom dashboards and report analytics

COMPENSATION OF PAYROLL:

Payroll refers to the administration of employees' salaries, wages, bonuses, net pay,

and deductions. It consists of the employee ID, employee name, date of joining, daily
attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value of meals and
lodging etc. There are some deductions such as PF, taxes, loan instalments or

advances.
PAYROLL MANAGEMENT:
Payroll is defined as a method of administrating employees’ salaries in the
organizations. The process consists of calculation of salaries and tax deductions of the
employees, administrating the retirement benefits and disbursements of salaries to employees.
It can also be called as an accounts activity which undertakes the salary administration of
employees in the organization.
Administrating the employees’ salaries is not an easy task, the HR and
accounts department work together to calculate and disburse the salary to the employees.
Thus, payroll management can be further subdivided into two subprocesses, i.e., Payroll
accounting and payroll administration.

Payroll Accounting
Payroll accounting involves calculations of employees’ salaries and tax
deductions. It also undertakes the activities such as preparation of tax returns, maintaining the
payroll records, etc.
Payroll Administration
Payroll Administration involves managerial activities such as maintaining
employees’ records, referring employment laws. Here, the HR comes into
picture which maintains the daily record if employee’s attendance.

Conceptual approach:

The literal meaning of compensation is to counter balance. In case of Human Resource

Management, compensation refers to money and other benefits received by an employee for
providing services to its employer.

Cascio opines that because of the importance that compensation holds for people's lifestyle
and self-esteem, individuals are very concerned about what they are paid a fair and
competitive wage, while organizations are also concerned about what they pay because it
motivates important decisions of employees about taking a job, leaving a job and on the job
performance.

Compensation as a concept according to Bernadine refers to all forms of financial returns and
tangible benefits that employee receives as part of employment relationship. Compensation as
it were is divided into two parts and these are cash compensation which is the direct pay
provided by employer for work performed by the employee and fringe compensation which
refers to employee benefit programs. Cash compensation has two elements which include
base pay and pay contingent. Base pay has to do with hourly or weekly wages plus overtime
pay, shift differential and uniform allowance while pay contingent is concerned with
performance allowances such as merit increases, incentive pay bonuses and gain sharing.
Fringe compensation on the other hand refers to employee benefits programs. Fringe
compensation also has two parts to it which are legally required benefit programs and
discretional benefits.

Legally required benefit programs include social security, workers compensation while
discretional programs include health benefits, pension plans, paid time off, tuition
reimbursement, recognition award, foreign service premiums, responsibility allowance, child
care, on campus accommodation, promotion, annual increment and a host of others. Benefits,
in a nutshell are the indirect financial and non-financial payments employees receive for
continuing their employment with an organization.

The concept of employee compensation and benefits cannot be discussed in a vacuum.

Various studies have established that salaries and benefits are closely related to job
satisfaction; and job satisfaction can bring about motivation which in turn affects employee
job performance and organizational commitment.

From the above literature the following concept are established as follows

Employee:

An employee is anyone who has agreed to be employed under a contract of service to work
for some form of payment. This can include wages, salary, commission and piece rates. It can
be in a library and information entre where ethics of the profession are practiced or any other
professionally inclined job or otherwise.

Employee Compensation:

Compensation is a primary motivator for employees. People look for jobs that not only suit
their creativity and talents, but compensate them both in terms of salary and other benefits
accordingly. Compensation is also one of the fastest changing fields in Human Resources, as
companies continue to investigate various ways of rewarding employees for performance.
Employee Benefits: This focus on maintaining or improving the quality of life for employees
and providing a level of protection and financial security for workers and their family
members.
Job and Job Satisfaction:

A regular activity performed in exchange for payment, especially as one's trade, occupation,
or profession is referred to as job. It may also be assumed to be a position in which one is
employed. Job satisfaction on the hand can be defined as a pleasurable emotional state
resulting from the appraisal of one's job or an affective reaction to one's job. it is defined as
an individual's reaction to the job experience.

Compensation approach:

In the early 20th century, the America government took a significant role and began to
introduce several changes in many aspects of worker’s pay and remuneration. This brought
about Acts such as the fair Labor Standards Acts of 1938, which dictated equal pay for equal
work. However, recessions dotted the following twenty years but later on the economy
boomed and government played an increasingly important role in America's workplace by
ratifying the equal pay Act Executive order 11246, Title 7 of the Civil Rights Acts in 1963.

Compensation as it were is a complex topic that has significant impact on organizational

success, and for any organization to succeed, it must not look up to capital investment but to
its employees as the fundamental source of improvement with the understanding that the
human element and the organization are synonymous.

In this phase to describe the meaning of compensation I adopt the definition provided by
Milkovich & Newman’s. According to them compensation represents all forms of financial
returns and tangible services and benefits employees receive as part of an employment
relationship. In this study tangible services are understood as synonyms with tangible returns
from the organizations to the employee in exchange of a contribution. They refer to any
return which is either visible symbolically and physically, or easily computable and
comparable between them or with those of other employees.

According to W.F. Casio, Compensation includes direct cash payments, indirect cash
payments in the form of employee benefits, incentives, rewards, to motivate employees to
strive for higher levels of productivity. Thus, compensation includes all expenditures of
valued resources by organizations for the employees, including managers and professionals.

Compensation as a concept according to Bernadin, refers to all forms of financial returns and
tangible benefits that employee receives as part of employment relationship. Compensation as
it were is divided into two parts and these are cash compensation which is the direct pay
provided by employer for work performed by the employee and fringe compensation which
refers to employee benefit programs. Cash compensation has two elements which include
base pay and pay contingent. Base pay has to do with hourly or weekly wages plus overtime
pay, shift differential and uniform allowance while pay contingent is concerned with
performance allowances such as merit increases, incentive pay bonuses and gain sharing.
Fringe compensation on the other hand refers to employee benefits programs. Fringe
compensation also has two parts to it which are legally required benefit programs and
discretional benefits.

According to Mondy and Noe compensation is the total of all rewards provided to employees
in return for their services. While according to P. Jyothi and D.N. Venkatesh the
compensation refers to all form of financial returns and tangible benefits that employees
receive as part of the employment relationship.

We can also define compensation, as it is the remuneration received by employees in return

of their contribution to the organization. It is an organized practice that involves balancing
the work employee relation by providing the monetary and non-monetary benefits to
employees.

While according to V.P. Michel, compensation is the recompense, rewards, wage or salary
given by an organization to a person, persons or a group of persons in return to a work done,
service rendered or a contribution made towards the accomplishment of organizational goals.

The definition of compensation would be Compensation is payment in the form of hourly

wages or annual salary combined with benefits such as insurance, vacation, stock options,
etc. that can positively or negatively affect an employee's work performance.

After discussing the concept of compensation, it is now important to know about the concept
of compensation management. So, following are some definitions regarding compensation
management given by various authors:

In the word of D.S. Beach Compensation Management refers the establishment and
implementation of sound policies and practices of employee compensation. It includes such
areas job evaluation, development and maintenance of wage structure, wage surveys, wage
incentives, wage changes and adjustments, supplementary payments, control of compensation
costs and other related pay items.
Similarly, according to Mamoria and Gankar, wage and salary administration‖ refers to the
establishment and implementation of sound policies and practices of employee compensation.
It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant
organizational problems, development and maintenance of wage structure, establishing rules
for administering wages, wage payments incentives, benefits including health insurance,
profit sharing, wage changes, and adjustments, supplementary payments, control of
compensation costs and other items.

As per them compensation Management provides a step by step approach for designing a
remuneration system that recognizes job requirement, employee related knowledge& skill
and performance related incentives for individual, team, work unit and organization
performance.

In the words of P. Subarao, Wage and Salary Administration or Compensation

Administration is essentially the application of a systematic approach to the problem of
ensuring that employees are paid in a logical, equitable and fair manner.

While S.S. Khanka views that the Wage and Salary Administration aims at establishing and
maintaining an equitable wage and salary system to obtain, retain and motivate people of
required skill in an organization.

Similarly, P.G. Aquinas, services rendered by individuals to organizations have to be

equitably paid for. This compensation generally comprises cash payments, which include
wages, bonus, and shared profits. Good compensation plans have a salutary effect on the
employees. They are happier in their work, cooperative with management and productivity is
up.

According to Cascio, the objective of the design of compensation program is divided into
two, which are, direct and indirect forms of compensation. Direct compensation has to do
with wage and / or salary aspect while indirect compensation is the fringe benefits a worker
enjoys as a result of working in an organization. Integrating the two into a package that will
encourage the achievement of an organizations goal is what compensation is all about.

In the words of McNamara, compensation includes issues regarding wage and/ or salary
programs and structures accruing from job descriptions, merit- based programs, bonus-based
programs, commission-based programs and so on, while benefits typically refers to
retirement plans, health life insurance, disability insurance, vacation, employee
stockownership plan and so on.

However, skill based pay also pose some risks in the area of employee paying higher
compensation that are not offset by organizations productivity. Also, employee may become
"rusty" unless there is opportunity to use all the skills acquired; and thirdly, when employee
hits the top of the pay structure, he may become frustrated and leave the firm just because
there is no further opportunity to receive pay raise. Employee benefits, though a part of total
compensation embraces non-monetary form of compensation ranging from health care plans,
to pension or retirement plans, social security, insurance, family and medical leave, severance
pay, payments for time not worked (vacations, sabbatical, holidays), workers compensation,
that is, those injured on the job, foreign service premiums, child care, tuition reimbursement
and on campus accommodation .Other emerging trends in employee benefits embrace
flexibility or what is known as cafeteria approach to benefits. This allows an employee to
choose from array of benefits in lieu of pay. An employee who is a bachelor may choose
money in lieu of child care. This is a welcoming idea though it could be more expensive for
employers. By and large, employee compensation and benefits is the ultimate in an
organization whether monetary or non-monetary and it matters a lot to individual workers.

Summery & Findings:

The study revealed that compensation (both financial & nonfinancial/ direct & indirect
compensation) has been a topic of discussion for various authors for quite a long period, as it
plays a vital role in the business world. It put intense effect on the most important factor of
production that is labor (employee or manpower). Starting from increasing motivation to
increasing productivity and increasing job satisfaction, everything depends on the
compensation practice of an organization. Organizations are now very much concerned about
the fact that happier the employee more will be the performance. So, they put more interest
on making compensation policy well suitable for their employees in order to increase their
motivation, performance and job satisfaction.
 CHAPTER-4

DATA ANALYSIS
1. Formal job evaluation plan is in place.

Options Respondents
Strongly agree 23
Agree 7
Strongly disagree 10
Disagree 10

Respondents
25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 23 respondents for strongly agree, 7 respondents for agree, 10
respondents for strongly disagree and 10 respondents for disagree.

Interpretation:
From the above data it depicts that majority of employee’s have agreed stating that their
organization is having the formal job evaluation plan because the policies laid by the top
management on integrity and honesty. Through this their analysis is done in an formal basis.
By doing this employees have gained their trust among the employers in organization.

2. Having written job descriptions for the job.

Options Respondents
Strongly agree 10
Agree 5
Strongly disagree 30
Disagree 5

Respondents
35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 10 respondents for strongly agree, 5 respondents for agree, 30
respondents for strongly disagree and 5 respondents for disagree.
Interpretation:

From the above data it depicts that majority of employee’s have disagreed that their
organization do not have the written job descriptions for the job performed by the individual
employee’s.

3. Type of compensation payment system that is preferred.

Options Respondents
Fixed pay system 43
Variable pay system 2
Balanced debt system 5
All 0

Respondents
50
45
40
35
30
25
20
15
10
5
0
Fixed pay system Variable pay system Balanced debt system All

Respondents

Reference:
From the above data 43 respondents for fixed pay system, 2 respondents for variable pay
system, 5 respondents for balanced pay system.

Interpretation:

From the above data it depicts that majority of the employee’s prefer the fixed pay type of
compensation system in the organization according to their contribution towards the
organization.

4. Organization’s compensation policy.

Options Respondents
Stay even with area labor market 45
Stay ahead of area labor market 5
Stay even with industry pay practices 0

Respondents
50
45
40
35
30
25
20
15
10
5
0
Stay even with area labor Stay ahead of area labor Stay even with industry
market market pay practices

Respondents

Reference:

From the above data 45 respondents for stay even with area labor market, 5 respondents for
stay ahead of area labor market, 0 respondents for stay even with industry pay practices.
Interpretation:

From the above data it depicts that majority of the employee’s stated that the compensation
policy of the organization will stay even with the area labor market.

5. Organization having employee policy manual.

Options Respondents
Strongly agree 15
Agree 20
Strongly disagree 10
Disagree 10

Respondents
25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:
From the above data 15 respondents for strongly agree, 20 respondents for agree, 10
respondents for strongly disagree and 10 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employee’s agreed that the organization
that they are working for is having an employee policy manual and few of the employee’s
disagreed to this point as they did not find an employee policy manual.

6. Salary of highest paid full-time role.

Options Respondents
10-50k 30
50k-1lakh 15
Above 1lakh 5

Respondents
35

30

25

20

15

10

0
10-50k 50k-1lakh Above 1lakh

Respondents

Reference:
From the above data 30 respondents for 10-50k, 15 respondents for 50k-1lakh and 5
respondents for above 1 lakh.

Interpretation:

From the above data it depicts that majority of the employees agreed that there are more
number of employees whose salary is between 10 to 50 thousand than the employees whose
salaries are between 50 thousand to 1 lakh or above.

7. Shift system is convenient than adopting a fixed timing to work.

Options Respondents
Strongly agree 20
Agree 10
Neutral 15
Disagree 5
Strongly disagree 0
 Respondents
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Respondents

Reference:

From the above data 20 respondents for strongly agree, 10 respondents for agree, 15
respondents for neutral, 0 respondents for strongly disagree and 5 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employee’s agreed that the shift system is
convenient than adopting a fixed timing to work. Where as few of the employees are neutral
to this statement as they are convenient for both shift system as well as fixed timing to work.

8. Factors considered when determining salary for a new hire.

Options Respondents
Job type 3
Experience 15
Education 20
Geographic location 10
Not based on consistent factors 2
Other 0
 Respondents
25

20

15

10

0
pe e n rs r
ty nc tio on to he
b er
ie
uc
a ati fa
c Ot
Jo p oc t
Ex Ed c l
en
hi i st
rap ns
og c o
Ge on
d
se
t ba
No

Respondents

Reference:

From the above data 3 respondents for job type, 15 respondents for experience, 20
respondents for education, 10 respondents for geographic location, 2 respondents for not
based on consistent factors.

Interpretation:

From the above data it depicts majority of employees feel that the organization will consider
the factors like experience and education of the employees majorly in terms of determining
the salary for a new hire.

9. Compensation strategy includes measures of pay equity.

Options Respondents
Strongly agree 40
Agree 2
Strongly disagree 5
Disagree 3
 Respondents
45

40

35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 40 respondents for strongly agree, 2 respondents for agree, 5
respondents for strongly disagree and 3 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees strongly agreed that the
compensation strategy that is followed by the organization includes he measures of pay
equity.

10. Salary raises are determined based on

Options Respondents
Standard annual % increase 10
Based on performance 30
Only when requested 5
We do not have a strategy for giving raises 5
 Respondents
35

30

25

20

15

10

0
Standard annual % Based on performance Only when requested We do not have a
increase strategy for giving
raises
Respondents

Reference:

From the above data 10 respondents for standard annual % increase, 30 respondents for based
on performance, 5 respondents for only when requested, 5 respondents for no strategy for
giving raises.

Interpretation:

From the above data it depicts that majority of the employees says that the salary is raised
based on the factor like the performance of the employees.

11. Recent changes have been made in terms of compensation in organization.

Options Respondents
Strongly agree 10
Agree 5
Strongly disagree 25
Disagree 10
 Respondents
30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 10 respondents for strongly agree, 5 respondents for agree, 25
respondents for strongly disagree and 10 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees strongly agree to the point that
there are some recent changes happened in the organization in terms of compensation.

12. Overall Compensation policy is satisfactory.

Options Respondents
Strongly agree 20
Agree 10
Strongly disagree 10
Disagree 10
 Respondents
25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 20 respondents for strongly agree, 10 respondents for agree, 10
respondents for strongly disagree and 10 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees are satisfied with their
compensation policy in the organization.

13. Average working hours of an employee.

Options Respondents
8 hours 26
9-10 hours 24
More than 10 hours 0
 Respondents
30

25

20

15

10

0
8 hours 9-10 hours More than 10 hours

Respondents

Reference:

From the above data 26 respondents for 8 hours. 24 respondents for 9-10 hours and 0
respondents for more than 10 hours of work.

Interpretation:

From the above data it depicts that majority of the employees are working for 8 hours in the
organization.

14. Types of leave benefits availed.

Options Respondents
Sick leave 18
 Maternity leave 14
Annual leave 8
Casual leave 10

Respondents
20
18
16
14
12
10
8
6
4
2
0
Sick leave Maternity leave Annual leave Casual leave

Respondents

Reference:

From the above data 18 respondents for sick leave, 14 respondents for maternity leave, 8
respondents for annual leave and 10 respondents for casual leave.

Interpretation:

From the above data it depicts that among the leave benefits like sick leave, maternity leave,
annual leave and casual leave in the organization, majority of the employees opted for sick
leave.

15. Satisfied with the bonus scheme of the company.

Options Respondents
Strongly agree 30
 Agree 15
Strongly disagree 5
Disagree 0

Respondents
35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 30 respondents for strongly agree, 15 respondents for agree, 5
respondents for strongly disagree and 0 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees are satisfied with the bonus
scheme provided by the organization.

16. Satisfied with the retirement benefit plans of the organization.

Options Respondents
Strongly agree 20
 Agree 30
Strongly disagree 0
Disagree 0

Respondents
35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 20 respondents for strongly agree, 30 respondents for agree, 0
respondents for strongly disagree and 0 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees agree to the point that they are
satisfied by the retirement scheme provided by the organization.

17. Organization provides insurance scheme for employee and their family.

Options Respondents
 Strongly agree 40
Agree 10
Strongly disagree 0
Disagree 0

Respondents
45

40

35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 40 respondents for strongly agree, 10 respondents for agree, 0
respondents for strongly disagree and 0 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees are satisfied by the insurance
scheme provided by the organization to the employees and their families.

18. Organization provides frequent medical checkups for the employees.

 Options Respondents
Strongly agree 35
Agree 15
Strongly disagree 0
Disagree 0

Respondents
40

35

30

25

20

15

10

0
Strongly agree Agree Strongly disagree Disagree

Respondents

Reference:

From the above data 35 respondents for strongly agree, 15 respondents for agree, 0
respondents for strongly disagree and 0 respondents for disagree.

Interpretation:

From the above data it depicts that majority of the employees accept to the point that the
organization is providing the regular medical checkup to the employees.

19. Ratio of fixed and variable pay in the company.

 Options Respondents
60%-40% 15
70%-30% 15
80%-20% 10
75%-25% 10

Respondents
16

14

12

10

0
60%-40% 70%-30% 80%-20% 75%-25%

Respondents

Reference:

From the above data 15 respondents for 60-40%, 15 respondents to 70-30%,10 respondents to
80-20% and 10 respondents to 75-25%.

Interpretation:

From the above data it depicts that most of the employees agree that 60-40% and 70-30% are
the ratios of fixed and variable pay in the organization.

20. Supervisor follows the leave policy.

 Options Respondents
Strictly 10
Standard 15
Lenient 15
Lethargic 10

Respondents
16

14

12

10

0
Strictly Standard Lenient Lethargic

Respondents

Reference:

From the above 10 respondents for strictly, 15 respondents for standard, 15 respondents for
lenient, 10 respondents for lethargic.

Interpretation:

From the above data it depicts that most of the employees agree that the supervisor follows
the leave policy mostly in standard and lenient in the organizaion.