You are on page 1of 71

PREFACE This Research enables us to apply theoretical knowledge to practical situations, appreciate the sense of responsibility, punctuality and

the psychology of worker and their habits which make us more professional and near to the world. Industrial Research brings out better citizens, better technocrats and better diplomats out of us. I was lucky to get an opportunity to work in one of the top limited sector industries, i.e. BIRLA cement. Dynamic people can make dynamic organizations. And motivated people can make things happen and enable an organization to achieve its goals. The first section deals with Compensation management and employee Motivation in this section, I have given a brief conceptual explanation to compensation . It contains the definition, process and significance of motivation and compensation The second section of my report deals with a Introduction about BIRLA cement company About its activities and operations, Brand, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer Organizations have now started realizing that the systematic attention to human resources is the only way to increase organizational efficiency in terms productivity, quality, profits and better customer orientation.
1

CONTENT CHAPTER Page No.

Introduction Introduction to Topic

03

Company Profile Objective of the study Research Methodology Methodology Scope of study Tools & Technique Sampling Methodology Limitations Analysis Data Analysis & Data Interpretation Findings Suggestion Conclusion Bibliography Annexure Questionnaire

22 39 41

46

57 60 62 64 66

COMPANSATION MANAGEMENT

Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Components of Compensation System Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

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

A good compensation package is important to motivate the employees to increase the organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

Strategic Compensation Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In todays competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems. EVALIATION OF COMPANSATION Todays compensation systems have come from a long way. With the changing organizational structures workers need and compensation systems have also been changing. From the bureaucratic organizations to the participative organizations, employees have started asking for their rights and appropriate compensations. The higher education standards and higher skills required for the jobs have made the organizations provide competitive
7

compensations to their employees. Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.

Evolution of Strategic Compensation Traditional Compensation Systems In the traditional organizational structures, employees were expected to work hard and obey the bosses orders. In return they were provided with job security, salary increments and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that

humans work for money, there was no space for other psychological and social needs of workers. Change in Compensation Systems With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from there job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource. Their performance was being measured and appraised based on the organizational and individual performance. Competition among employees existed. Employees were expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee.

Maslows Need Hierarchy Todays Modern Compensation Systems Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, companys vehicle; House rent allowances; statutory leaves, etc. IMPORTANCE OF COMPANSATION MANAGEMENT

10

Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the process. Labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following:
o

An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system. The system should be simple and flexible so that every employeewould be able to compute his own compensation receivable. It should be easy to implement, should not result in exploitation of workers. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

11

Such system would help management in complying with the various labor acts. Such system should also solve disputes between the employee union and management. The system should follow the management principle of equal pay. It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel. Sound Compensation/Reward System brings peace in the relationship of employer and employees. It aims at creating a healthy competition among them and encourages employees to work hard and efficiently. The system provides growth and advancement opportunities to the deserving employees. The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability. The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job. The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce. The sound compensation system is hallmark of organizations success and prosperity. The success and stability of organization is measured with pay-package it provides to its employees.

o o

TYPES OF COMPANSATION 1 DIRECT COMPANSATION Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The

12

monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time. Basic Salary Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services. House Rent Allowance Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work Conveyance Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employeestomotivatethem.

13

Leave Travel Allowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization. Medical Reimbursement Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.

14

Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee. Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity. INDIRECT COMPANSATION Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes. Leave Policy It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc. Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overt Hospitalization The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.
15

Insurance Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization. Leave Travel The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the

16

employees of the organization. This is usually done to make the employees stress free. Retirement Benefits Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age. Holiday Homes Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house. Flexible Timings Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons. EMPLOYEE MOTIVATION Motivation is the activation or energization of goal-orientated behavior. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be

17

confused with either volition or optimism. Motivation is related to, but distinct from, emotion. Motivation concepts Intrinsic and extrinsic motivation Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Research has found that it is usually associated with high educational achievement and enjoyment by students. Intrinsic motivation has been explained by Fritz Heider's attribution theory, Bandura's work on self-efficacy, and Ryan and Deci's cognitive evaluation theory. Students are likely to be intrinsically motivated if they:

attribute their educational results to internal factors that they can control (e.g. the amount of effort they put in), believe they can be effective agents in reaching desired goals (i.e. the results are not determined by luck), are interested in mastering a topic, rather than just rote-learning to achieve good grades.

Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations.

While competing, the crowd may cheer on the performer, which may motivate him or her to do well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Social psychological research has indicated that extrinsic rewards can lead to overjustification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were)
18

rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition and to children who received no extrinsic reward. Self-control The self-control of motivation is increasingly understood as a subset of emotional intelligence; a person may be highly intelligent according to a more conservative definition (as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale School of Management professor Victor Vroom's "expectancy theory" provides an account of when people will decide whether to exert self control to pursue a particular goal. Drives and desires can be described as a deficiency or need that activates behavior that is aimed at a goal or an incentive. These are thought to originate within the individual and may not require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger, which motivates a person to seek food; whereas more subtle drives might be the desire for praise and approval, which motivates a person to behave in a manner pleasing to others. By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training animals by giving them treats when they perform a trick correctly. The treat motivates the animals to perform the trick consistently, even later when the treat is removed from the process.

19

Motivational theories The incentive theory of motivation A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. Motivation comes from two sources: oneself, and other people. These two sources are called intrinsic motivation and extrinsic motivation, respectively. Applying proper motivational techniques can be much harder than it seems. Steven Kerr notes that when creating a reward system, it can be easy to reward A, while hoping for B, and in the process, reap harmful effects that can jeopardize your goals. A reinforcer is different from reward, in that reinforcement is intended to create a measured increase in the rate of a desirable behavior following the addition of something to the environment. Drive-reduction theories There are a number of drive theories. The Drive Reduction Theory grows out of the concept that we have certain biological drives, such as hunger. As time passes the strength of the drive increases if it is not satisfied (in this case by eating). Upon satisfying a drive the drive's strength is reduced. The theory is based on diverse ideas from the theories of Freud to the ideas of feedback control systems, such as a thermostat.

20

Drive theory has some intuitive or folk validity. For instance when preparing food, the drive model appears to be compatible with sensations of rising hunger as the food is prepared, and, after the food has been consumed, a decrease in subjective hunger. There are several problems, however, that leave the validity of drive reduction open for debate. The first problem is that it does not explain how secondary reinforcers reduce drive. For example, money satisfies no biological or psychological needs, but a pay check appears to reduce drive through second-order conditioning. Secondly, a drive, such as hunger, is viewed as having a "desire" to eat, making the drive a homuncular beinga feature criticized as simply moving the fundamental problem behind this "small man" and his desires. In addition, it is clear that drive reduction theory cannot be a complete theory of behavior, or a hungry human could not prepare a meal without eating the food before he finished cooking it. The ability of drive theory to cope with all kinds of behavior, from not satisfying a drive (by adding on other traits such as restraint), or adding additional drives for "tasty" food, which combine with drives for "food" in order to explain cooking render it hard to test. Cognitive dissonance theory Suggested by Leon Festinger, this occurs when an individual experiences some degree of discomfort resulting from an incompatibility between two cognitions. For example, a consumer may seek to reassure himself regarding a purchase, feeling, in retrospect, that another decision may have been preferable. Another example of cognitive dissonance is when a belief and a behavior are in conflict. A person may wish to be healthy, believes smoking is bad for one's health, and yet continues to smoke.
21

Need theories Need hierarchy theory Main article: Maslow's hierarchy of needs Abraham Maslow's theory is one of the most widely discussed theories of motivation. The theory can be summarized as follows:

Human beings have wants and desires which influence their behavior. Only unsatisfied needs influence behavior, satisfied needs do not. Since needs are many, they are arranged in order of importance, from the basic to the complex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. The further the progress up the hierarchy, the more individuality, humanness and psychological health a person will show.

The needs, listed from basic (lowest-earliest) to most complex (highestlatest) are as follows:

Physiology (hunger, thirst, sleep, etc.) Safety/Security/Shelter/Health Belongingness/Love/Friendship Self-esteem/Recognition/Achievement Self actualization

Herzberg's two-factor theory Frederick Herzberg's two-factor theory, a.k.a. intrinsic/extrinsic motivation,
concludes that certain factors in the workplace result in job satisfaction, but if absent, they don't lead to dissatisfaction but no satisfaction. 22

The factors that motivate people can change over their lifetime, but "respect for me as a person" is one of the top motivating factors at any stage of life. He distinguished between:

Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction, and Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demotivation.

The name Hygiene factors is used because, like hygiene, the presence will not make you healthier, but absence can cause health deterioration. The theory is sometimes called the "Motivator-Hygiene Theory" and/or "The Dual Structure Theory." Herzberg's theory has found application in such occupational fields as information systems and in studies of user satisfaction

23

24

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,600 employees, belonging to 40 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 26 countries Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Singapore, Switzerland, Thailand, UAE, UK, USA and Vietnam. Globally, the Aditya Birla Group is:
25

:: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in :: :: :: :: :: :: Asia, with the largest single location copper smelter No.1 in viscose staple fibre The fourth-largest producer of insulators The fourth-largest producer of carbon black The fifth-largest producer of acrylic fibre The ninth-largest cement producer Among the best energy-efficient fertiliser plants

In India: :: :: :: :: :: :: :: :: One of the leading cement producers The top fashion (branded apparel) and lifestyle player The second-largest producer of viscose filament yarn The second-largest in the chlor-alkali sector Among the top four mobile telephony companies Among top 10 Indian BPO companies by revenue size A leading player in life insurance and asset management Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond business

Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt.

26

In India, the Group's social projects span 2,500 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than a million patients are given extremely subsidised medical care. To embed corporate social responsibility as a way of life in organisations, the Group has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi. The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society. The name Aditya Birla evokes all that is positive in business and in life. It exemplifies integrity, quality, performance, perfection and above all character. Our logo is the symbolic reflection of these traits. It is the cornerstone of our corporate identity. It helps us leverage the unique Aditya Birla brand and endows us with a distinctive visual image.

Depicted in vibrant, earthy colours, it is very arresting and shows the sun rising over two circles. An inner circle symbolising the internal universe of the Aditya Birla Group, an outer circle symbolising the external universe, and a dynamic meeting of rays

27

converging

and

diverging

between

the

two.

Through its wide usage, we create a consistent, impact-oriented Group image. This undoubtedly enhances our profile among our internal and external stakeholders.

Our corporate logo thus serves as an umbrella for our Group. It signals the common values and beliefs that guide our behaviour in all our entrepreneurial activities. It embeds a sense of pride, unity and belonging in all of our 130,600 colleagues spanning 26 countries and 40 nationalities across the globe. Our logo is our best calling card that opens the gateway to the world. Dr. Pragnya Ram as the Chief Custodian of the Aditya Birla logo.

BIRLA CORPORATION LTD.(Cement Division) BIRLA VIKAS CEMENT Satna (M.P) COMPANY PROFILE : After establishing itself as a major Cement producer the then Birla Jute & Industries Ltd., commissioned its second unit at Satna (M.P.) in 1982 under the name BIRLA VIKAS CEMENT (BVC). In keeping with the technological innovation at that time. The plant was setup with a dry process Kiln with a 2- string Preheater and a separate line Precalciner. This was the first plant supplied by M/S F.L.Smidth in India , based on coal fired precalciner technology. With a rated capacity of 0.80 Million Tons ,BVC has always been operating at a higher capacity. The BVC unit also has been conferred with ISO-9001 and ISO-14001 certification in recognition of its performance in quality management and environmental management
28

systems. Besides the conventional general purpose Cement OPC 33G, 43G and 53G, Birla Vikas Cement manufactures PPC utilizing Flyash. In consonance with its commitment to quality, necessary instrumentation facilities including X-Ray analyzer and X-Ray diffractometer are provided for monitoring and controlling quality of Raw materials and Clinker/Cement. While domestic market requirements the met with our products under the brand name "BIRLA CEMENT KHAJURAHO" and "BIRLA SAMRAT". An Overview of "Birla Vikas Cement" Plant

29

ENERGY CONSUMPTION: The company top has of by efforts always Total energy putting towards Energy Total cost of for production Energy in the terms of % of manufacturing cost accorded priority for consumption The energy used consumption

minimization consumption consistent

optimization of operating/process parameters, efforts have been made by for reducing energy consumption, wherever possible, adopting and appropriate suitably technology

modifying the process stream with installation of necessary equipment /machinery etc. Year Electricity Lakhs / year 2004-2005 2005-2006 2006-2007 931.92 994.97 979.24 Thermal Million Kcal / Rs. Lakhs /year year 75.13 x 104 78.61 x 104 76.17 x 104 6591 6879 5964 14.14 % 14.16 % 16.42 %

ENERGY CONSERVATION COMMITMENT, POLICY AND SET UP : With a view to sustaining energy conservation efforts, an "Energy Conservation Cell" has been instituted headed by President himself and comprising engineers from Production, Mechanical and Electrical departments. The cell has been entrusted with the responsibility of monitoring both Electrical & Thermal energy consumption on a continuous

30

basis, advising concerned departments for taking corrective actions, wherever necessary and implementing energy saving schemes. Our energy management policy is as follows: Energy management Policy We, at Birla Corporation Limited are committed to continuously improve the energy performance in all our activities and services to maximize reduction in energy consumption and to conserve energy resources for future generations without impairing productivity. To accomplish this, we will et targets and continuously monitor the energy consumption pattern S and take corrective actions. Upgrade the process, technology and equipment to reduce the cost of energy and increase the profitability of the organization. Make energy conservation a mass movement by creating awareness and encouraging the employees participation at all levels. Enhance the use of non-conventional and renewable forms of energy wherever possible. Explore the possibility of waste heat recovery in the plant Ensure energy efficient Captive generation.

31

ENERGY CONSERVATION ACHIEVEMENTS During the period between 2004-2006 Birla Vikas Cement has implemented many proposals received by workmens suggestions, In house energy audits by EC etc. This resulted in to saving of Rs.176. Lakhs. This has resulted in a reduction of 9.53% in specific electrical energy consumption in cement. Energy Conservation measures taken in year 2006-2007 : a) Installation of compressed air energy saver In SCW Conversion plant for few areas pressure of compressed air has been reduced from 6.5 to 3.5 Kg/cm2. Also, diameter of main header has been increased from 5 to 6 and 33 bend were also removed. It also reduced the line losses and friction losses in the compressed air line. This has saved 1.54 lac kWh power / annum. b) Provision of interlocking of BDC fan with Packer to avoid idle running of BDC Fans (4 nos.) Idle running of BDC fans had been observed during the energy audit of packing plant. Start and stop of the BDC fan was manual. Interlocking of all four nos. BDC fans have been done with Packer to stop the BDC fan automatically. Whenever Packer stops and hopper above packer is full BDC will trip after 5 minutes. This interlocking has avoided 3 hrs. of idle running per day. Installed load of 4 nos. Fan motors = 180 KW Running load of 4 nos. Fan motors = 148 KW Idle running per day = 3 hrs. Per day Power saving per annum = 162060 kWh Total investment = 0.01 Lakhs c) Installation of new pullies Installation of new pullies in BDC fan motor, in BVC packing plat to reduced the RPM and save power.
32

Before installation Actual load of 4 nos. fan = 143 KW After installation Actual load of 4 nos. fan = 101 KW Power saving per annum = 3.05kWh c) Interlocking of aeration blower Installed load of 2 nos. Blower = 22 KW Running load of 2 nos. Blower = 14 KW Idle running per day = 8 hrs. Per day Power saving per annum = 0.36 kWh d) Installation of Invertors in Cooler Fans Installation of 6 nos new inverter module in BVC coolers fan. Before installation Actual load of 6 nos. fan = 447 KW After installation Actual load of 6 nos. fan = 313 KW Total Power Saving per hour = 134 KW Saving (320 days) = 10.29 lakhs kWh

33

ENERGY CONSERVATION PLANS AND TARGETS: The plant management and Anticipated saving staff are committed to improving efficiency their energy by Energy Value KWh/ Kcal/Kg setting still lower energy Tonne consumption targets; and further this an on-going journey towards excellence in achieving energy Approx. Investment (Rs. lakhs) Rs. Lakhs Project completion Year

consumption. Our plans for Energy Conservation is as follows: Energy 50 921.50 7041 Year 08-09 Conservation plans Capacity enhancement 10.40 from 2900 to 5100 TPD clinker Installation of compressed 3.07 air energy saver Installation of lighting 0.43 11.13 1.58 3.50 2.00 Year 07-08 Year 07-08

energy saver for Preheater & Raw Mill section

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,600 employees, belonging to 40 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune

34

magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 26 countries Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Singapore, Switzerland, Thailand, UAE, UK, USA and Vietnam. Globally, the Aditya Birla Group is: :: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in :: :: :: :: :: :: Asia, with the largest single location copper smelter No.1 in viscose staple fibre The fourth-largest producer of insulators The fourth-largest producer of carbon black The fifth-largest producer of acrylic fibre The ninth-largest cement producer Among the best energy-efficient fertiliser plants

In India: :: :: :: :: :: :: :: :: One of the leading cement producers The top fashion (branded apparel) and lifestyle player The second-largest producer of viscose filament yarn The second-largest in the chlor-alkali sector Among the top four mobile telephony companies Among top 10 Indian BPO companies by revenue size A leading player in life insurance and asset management Among the top three supermarket chains in the retail business

35

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond business

Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt. In India, the Group's social projects span 2,500 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than a million patients are given extremely subsidised medical care. To embed corporate social responsibility as a way of life in organisations, the Group has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi. The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society. Vision

36

Our To be a premium global

Vision conglomerate

with a clear focus on each business. Our To society Our Integrity Commitment Passion Seamlessness Speed deliver superior value employees at to our and large. Values Mission customers,

shareholders,

Products Grasim chemicals, textiles UltraTech Cement Limited* Cement, ready mix concrete Hindalco Industries Limited Aluminium, copper Novelis Inc.* Aluminium rolled products, cans, primary metal, recycling Aditya Birla Minerals Limited* Australia copper mines
37

Industries

Limited

Cement, viscose staple fibre, rayon grade pulp, ready mix concrete,

Aditya Birla Chemicals (India) Limited* Caustic soda Hindalco-Almex Aerospace Limited** Aerospace alloy Utkal Alumina International Limited* Alumina Dahej Harbour & Infrastructure Limited* Handling of captive cargo (copper unit) and commercial cargo Aditya Birla Science and Technology Company Limited R&D Tubed Coal Mines Limited* Mining Mahan Coal Limited** Mining Aditya Birla Nuvo Limited Branded garments, viscose filament yarn, carbon black, agribusiness, insulators, textiles Birla Sun Life Insurance Company Limited** Life insurance Birla Sun Life Asset Management Company Limited** Asset management Aditya Birla Finance Limited* Non-banking financial services Aditya Birla Money Mart Limited* Distribution and wealth management Aditya Birla Money Limited* Broking Birla Insurance Advisory and Broking Services Limited* General insurance advisory and broking Aditya Birla Capital Advisors Private Limited* Private equity investment, advisory and management services Idea Cellular Limited** Cellular services Aditya Birla Minacs Worldwide Limited* IT-ITeS Madura Garments Life Style Retail Company Limited* Branded apparel retailing
38

Essel Mining Iron ore mining, noble ferro alloys and wind power generation Aditya Birla Retail Limited FMCG products, fruits, vegetables, groceries, frozen food, bakery, homecare and pharmacy Joint ventures Birla Sun Life Joint Ventures Financial services Tanfac Industries Fluorine chemicals Aditya Birla Grasun Chemicals (Fangchenggang) Limited Food grade phosphoric acid Thai Peroxide Company Limited Hydrogen peroxide Hindalco Almex Aerospace Limited Aerospace alloys Mahan Coal Limited Mining Hydromine Bauxite / alumina Companies overseas Novelis Inc. Aluminium flat rolled products (sheet and foil) and recycling. Also bauxite mining, power generation and aluminium smelting Thai Rayon Viscose staple fibre (VSF) Indo Thai Synthetics Spun yarns of 100 per cent rayon, PES and blends Thai Acrylic Fibre Acrylic fibre Thai Carbon Black Carbon black Aditya Birla Chemicals (Thailand) Limited Chlor-alkali products, epichlorohydrin, epoxy resins, sodium phosphates, speciality phosphates, sodium sulphite, sodium metabisulphite Thai Peroxide Hydrogen peroxide Birla Lao Pulp and Plantations Company Limited Pulp wood plantations and dissolving pulp plant Indo Phil Textile Mills Yarns Indo Phil Cotton Mills Yarns Indo Phil Acrylic Mfg. Corp. Yarns Pan Century Surfactants Fatty alcohols, fatty acids, glycerine PT Indo Bharat Rayon VSF PT Elegant Textile Industry Yarns PT Sunrise Bumi Textiles Yarns PT Indo Liberty Textiles Yarns PT Indo Raya Kimia Carbon di-sulphide Swiss Singapore Overseas Enterprises Pte Limited Trans-national bulk commodity trading solutions provider Alexandria Carbon Black Carbon black Alexandria Fiber Acrylic fibre Liaoning Birla Carbon Co. Limited Carbon black

39

Birla

Jingwei

Fibres

Co.

Limited

VSF

Aditya

Birla

Grasun

(Fangchenggang) Limited Food grade phosphoric acid AV Cell Inc. Softwood/hardwood dissolving grade pulp (for VSF manufacture) AV Nackawic Inc. Hardwood dissolving grade pulp (for VSF manufacture) Aditya Birla Minerals Limited Copper mines

40

41

OBJECTIVE OF THE STUDY PRIMARY OBJECTIVES

Study about the Compensation management on motivational level of Employee in Birla cement. study about the satisfaction level of employee regard

To

Compensation and motivation.


To collect the findings, information & analyze to draw conclusion of

Compensation process. SECONDARY OBJECTIVES


To involve employees in creating an environment of openness,

motivation, trust, fun & pride.

42

43

RESEARCH METHODOLOGY Research methodology is the methodology which is used systematically to solve the research problem. When we talk about the research methodology we not only talk of research method but also consider the logic behind method we use in the context of our research study and explain that why we are using the particular method or technique so that research result are capable of being evaluated by the researcher himself or by others. RESEARCH DESIGN: 1) Exploratory research design:In this research, exploratory research design is used. This research design is used to discover the hidden concepts related to the employees in a manufacturing concern. In this research, exploratory research is used to discover the skills possessed by the employees and to explore training needs of the employees. 2) Descriptive research design:In this research, descriptive research design is used to describe the characteristics of a particular group. This research design is used to describe the operational skills possessed by the employees in the production department.

44

SCOPE OF THE STUDY This study is not meant for the top level employees in Birla Cement . The study is mainly limited to the production department of the company. This study is confined to the 50 employees in the production department of BIRLA cement. The areas enclosed under the project are as follows: Type of compensation programmes conducted Duration of the motivational programme The way the welfare programme being organized in company Coverage of various topics Data Collection Methods for Compensation management There are several different ways in which to collect the information required. A detailed approach will utilize multiple methods in order to form the clearest picture of learning needs. This will take longer, but if conducted properly will deliver more meaningful results and should lead to the development of a highly relevant and targeted training program. The analysis methods include:

Interviewing managers to learn what they want their staff to know. Interviewing staff to discover where they think their skills gaps lie. Interviewing other relevant parties, such as implementation consultants if the training is linked to a new system implementation.

Questionnaires for learners to self-assess their knowledge. Studying documentation that defines the objectives of project or the function of a team. Observing staff at work to see how they actually operate.

45

Having learners perform tests in order to benchmark knowledge prior to training.

Processing the Results of Analysis Once the data has been collected it is important that it is correctly assessed. This involves reviewing the data to identify trends and themes. The level of detail will depend on the number of learners being assessed. The outcome of the assessment should be a list of subjects in which training is required, and a list of the groups, or individuals, who need that training. This information can then be used to develop a training plan. DATA COLLECTION METHODS The primary data is collected by the use of questionnaire method. Questionnaire method helped to get the fresh data. The Secondary data is collected from Books Magazines Internet Journals SAMPLING DESIGN Sampling may be defined as the selection of some part of an aggregate on the basis of which a judgement or inference about the total is made. Sampling design is the process of obtaining information about the population by examining the part of it.

46

Sampling Technique Non probability sampling technique is used in this study. In this technique, each and every sample unit does not have equal chance of being selected. Sampling Method Judgment and convenient sampling is used in this study as ASDC has chosen on the basis of past study of skills possessed by the employees. Convenient sampling is used as ASDC has chosen the employees who are working in day shift. Sampling Unit It defines the target population that will be sampled. It is answer who is to be sampled. It answers who is to be surveyed. In this study, the sampling unit are the employees in the production department. Sample Size It indicates the number of people to be surveyed. Large sample gives more reliable results than small sample. But in this study, the sample size is not so large. The sample size is restricted to 50 respondent (Employees). Limitations of the study: The time allocated for the study was limited Majority of respondents are hesitant in giving their responses whole heartedly. The sample size was restricted to 50

The study was restricted to the lower and middle level of employees.

47

48

DATA ANALYSIS & INTERPRETATION Q.1 1. How would you rate the attractiveness of our product?

Response Excellent Very Good Good Fair Poor

% of respondent 40 30 05 15 10

Exellent

15 %

10 %

very good good f air Poor

40 %

05 %

30 %

INTERPRETATIONOut of 50 respondent 40% told the attractiveness of our product and provided to customers while 30% told Its very good and 15% told fair, 05% told good , 10% told poor.

49

Q.2 How do you rate to the employee satisfaction towards Compensation and motivation provided by BIRLA Cement Company as compared with a year ago? Response Excellent Very Good Good Fair Poor % of respondent 35 22 28 05 10

Exellent

05 %

10 %

35 % good
fair Poor

very good

28 % 22 %

INTERPRETATIONOut of 50 respondent 35% respondent told employee satisfaction towards Compensation and motivation provided by BIRLA cement is Excellent while 22% told Its very good and 05% told fair, 28% told good ,10% told poor.

50

Q.3 How do you rank to Traditional Compensation Systems of BIRLA cement? Response Excellent Very Good Good Fair Poor % of respondent 25 32 18 15 10

15 %

10 %

Exellent

25 %

very good good f air Poor

18 % 32 %

INTERPRETATIONOut of 50 respondent 25% respondent told Traditional Compensation Systems of BIRLA cement is Excellent while 32% told Its very good and 15% told fair, 18% told good ,10% told poor.

51

Q.4 How do you rate to Special Allowances which motivate to employee in company is ?

Response Excellent Very Good Good Fair Poor

% of respondent 29 21 23 13 14

Exellent

13 %

14 %

very good

29 % good
fair Poor

23 % 21 %

INTERPRETATIONOut of 50 respondent 29% told Special Allowances which motivate to employee in company is Excellent while 21% told Its very good and 13% told fair, 23% told good, 14% told poor.

52

Q5. How do you rate to Leave Policy which help in motivation level of employee of BIRLA cement is? Response Excellent Very Good Good Fair Poor % of respondent 10 17 33 25 15

Exellent

15 %

very good good 10 fair Poor

17 %

25 %

33 %

INTERPRETATIONOut of 50 respondent 10% told Leave Policy which help in motivation level of employee it is Excellent while 17% told Its very good and 25% told fair, 33% told good ,15% told poor

53

Q.6 Do you think that Flexible Timing of company is well? Response Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree % of respondent 35 27 13 10 15

strongly agree agree neither agree nor disagree disagree strongly disagree

10 % 13 %

15 %

35 %

27 %

INTERPRETATION: Out of 50 respondent 35% were think they are satisfied with the Flexible Timing of company 27% were agree , while 13% were neither agree nor disagree

54

Q.7 Do you think that Medical Reimbursement of company is well? Response Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree % of respondent 22 38 03 17 20

strongly agree agree

17 % 3%

20 %

neither agree nor disagree

22 %

disagree strongly disagree

38 %

INTERPRETATION: Out of 50 respondent 22% were strongly agree that Medical Reimbursement of the company while 38% were agree 03% were neutral and175 were disagree, 20%were strongly disagree

55

Q.8 House Rent Allowance of company is well? Response Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree % of respondent 33 47 05 10 05

strongly agree agree

10 % 05 %

05 %

33 % neither agree nor disagree


disagree strongly disagree

47 %

INTERPRETATIONOut of 50 respondent 33% were strongly agree while 47% were agree and only 05% were neither agree nor disagree and 10% respondent were disagree and 05% were strongly disagree with the statement that House Rent Allowance of company is well.

56

Q.9

Do you think that ideal compensation encourage the employees to

perform better and achieve the standards fixed in BIRLA Cement ? Response Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree % of respondent 17 60 03 05 05

s tr ongly agre e agre e

05 % 03 %

05 %

ne ithe r agre e nor dis agr e e dis agr e e s tr ongly dis agr e e

17 %

60 %

INTERPRETATIONOut of 50 respondent 17% were strongly agree while 60% were agree and only 03% were neither agree nor disagree and 05% respondent were disagree and 05% were strongly disagree with the statement that ideal compensation encourage the employees to perform better and achieve the standards fixed.

57

Q.10 Do you think Bonus is paid to the employees during festive seasons to motivate them? Response Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree % of respondent 37 43 10 05 05

strongly agree agree

05 % 10 %

05 %

37 % agree neither
nor disagree disagree strongly disagree

43 %

INTERPRETATIONOut of 50 respondent 37% were strongly agree while 43% were agree and only 10% were neither agree nor disagree and 05% respondent were disagree and 05% were strongly disagree with the statement that Bonus is paid to the employees during festive seasons to motivate employee.

58

59

FINDING

40% told Indirect compensation of BIRLA cement is excellent refers to non-monetary benefits offered and provided to employees while 30% told Its very good and 15% told fair, 05% told good ,10% told poor.

35% respondent told employee satisfaction towards Compensation and motivation provided by BIRLA cement is Excellent while 22% told Its very good and 05% told fair, 28% told good ,10% told poor.

25% respondent told Traditional Compensation Systems of BIRLA cement is Excellent while 32% told Its very good and 15% told fair, 18% told good ,10% told poor.

29% told Special Allowances which motivate to employee 23% told good, 14% told poor.

in

company is Excellent while 21% told Its very good and 13% told fair, 10% told Leave Policy which help in motivation level of employee it is Excellent while 17% told Its very good and 25% told fair, 33% told good ,15% told poor

35% were think they are satisfied with the Flexible Timing of company 27% were agree , while 13% were neither agree nor disagree 22% were strongly agree that Medical Reimbursement of the company while 38% were agree 03% were neutral and175 were disagree, 20%were strongly disagree

33% were strongly agree while 47% were agree and only 05% were neither agree nor disagree and 10% respondent were disagree and 05% were strongly disagree with the statement that House Rent Allowance of company is well.

60

17% were strongly agree while 60% were agree and only 03% were neither agree nor disagree and 05% respondent were disagree and 05% were strongly disagree with the statement that ideal compensation encourage the employees to perform better and achieve the standards fixed.

37% were strongly agree while 43% were agree and only 10% were neither agree nor disagree and 05% respondent were disagree and 05% were strongly disagree with the statement that Bonus is paid to the employees during festive seasons to motivate employee.

61

62

SUGGESTIONS The top management can bring about changes in its current and perceptions to bring about empowerment in the organization. The top management can :1) Empowering to the leaders to understand the strengths and weakness of people and support them so that they make a full contribution of their talents and skills.
2) Create a climate in which the individuals can best attain his own goals by

direction his efforts towards attaining the goals of company.


3) Should improve the compensation management of company.

4) Company should start motivational program once in a month.


5) The managers must take proactive steps for compensation the solution of

the problems without any delay. 6) They should implement more incentives schemes for improvement of employees.
7) Individuals should be motivated to employees.

63

64

CONCLUSION

After completion of Research I concluded that In BIRLA cement company Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 26 countries Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Singapore, Switzerland, Thailand, UAE, UK, USA and Vietnam. . The efficiency of workers and their interest and involvement in the work depend on wage payment. Even their attitude towards employer depends on wage payment. In brief, wage payment is a matter of greatest importance to workers. Wage problem is the most pressing and persistent problem before the entire labour force. In BIRLAcement company Generally, compensation payable to an employee includes the following three components: Basic compensation for the job (wage/salary) Incentive compensation for the employee on job Supplementary compensation paid to employees (fringe benefit and employee services) BIRLA Cement (PPC) helps to produce better concrete & compressive strength keeps on growing with time. BIRLA Cement promotes workability in fresh concrete even with less water and hence yields high strength concrete of low permeability, less bleeding, better pump-ability and superior finish. Hardened concrete made with BIRLA Cement benefits from long term gain in compressive strength and related properties like low creep & shrinkage etc.

65

66

BIBLIOGRAPHY By the help of Books Principles and practice of Management by C.B. Gupta. Human Resource Development by U.B. Singh Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill Management of human Resource.
Business Environment written By Francis Cherunilam

By the Help of Manuals 2009-10 Report of BIRLA CEMENT REWA By the help of Websites
www. jpgroup.com www.google.com

www. wikkipedia.com

67

68

QUESTIONNAIRE Q.1 How do you rank to Indirect compensation of BIRLA cement refers to non-monetary benefits offered and provided to employees ? Excellent Very Good Good Fair Poor Q.2 How do you rate to the employee satisfaction towards Compensation and motivation provided by BIRLA cement company as compared with a year ago? Excellent Very Good Good Fair Poor

Q.3 How do you rank to Traditional Compensation Systems of BIRLA cement? Excellent Very Good Good Fair Poor

Q.4 How do you rate to Special Allowances which motivate to employee in company is ? Excellent Very Good
69

Good Fair Poor

Q5. How do you rate to Leave Policy which help in motivation level of employee of BIRLA cement is? Excellent Very Good Good Fair Poor

Q.6 Do you think that Flexible Timing of company is well? Q.7 Q.8 Q.9 Excellent Very Good Good Fair Poor Do you think that Medical Reimbursement of company is well? Excellent Very Good Good Fair Poor House Rent Allowance of company is well? Excellent Very Good Good Fair Poor Do you think that ideal compensation encourage the employees to

perform better and achieve the standards fixed in BIRLA Cement ?

70

Excellent Very Good Good Fair Poor

Q.10 Do you think Bonus is paid to the employees during festive seasons to motivate them? Excellent Very Good Good Fair Poor

71