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Submitted in partial fulfillment of the requirement of ANDHRA UNIVERSITY for the award of the degree of
MASTER IN HUMAN RESOURCE MANAGEMENT
Under guidance of
(Dr. D.L.DEEPAK) Field in-charge Dept of HRM
GVP COLLEGE FOR DEGREE AND PG COURSES VISAKHAPATNAM (Affiliated to Andhra University) VISAKHAPATNAM
A SURVEY ON“COMPENSATION MANAGEMENT IN MAHLE INDIA PISTONS Ltd, CHENNAI, in partial fulfillment for the award of the degree of MHRM, ANDHRA UNIVERSITY for the academic year 2007-2009.
Dr. S.M.Murali Krishna Head, Dept of HRM GVP DEGREE College (Autonomous)
I am Mohua Bera studying M.H.R.M in Gayatri Vidhya Parishad college for degree and P.G here by declare that this project report entitled A SURVEY
ON“COMPENSATION MANAGEMENT IN MAHLE INDIA PISTONS Ltd, CHENNAI submitted by me is my original work
The findings of the report are based on the information collected by me during the survey and is not submitted for the award of any other degree diploma fellowship or other such title or prize
Place: Visakhapatnam Date:
Since employee remuneration is such an important subject. It is all the most in some labour intensive organizations. The HR specialist has difficult task of fixing wages and wage differentials acceptable to employees and their leaders. employee remuneration is a major function. loyalty. many battles (in the form of strikes and lockouts) are fought between the employer and the employees on issues relating to wages or bonus.PREFACE Compensation is a remuneration an employee receives in return for his or her contribution to the organization. . For the employer too. status in the society. employee remuneration is significant because of its contribution to the cost of production. motivation. For HRM too. Besides. Remuneration occupies an important place in the life of an employee. effective management of employee compensation is critical because of the total operating costs. and productivity depend upon the remuneration he or she receives. His or her standard of living. Employee compensation decisions are crucial for the success of an organization. considerable space is devoted in books and periodicals for detailed discussions of wage.related problems. From a cost perspective alone.related and salary.
Murali Krishna Garu. MAHLE INDIA PISTONS Ltd. HOD.M. HR.H. M. MAHLE INDIA PISTONS Ltd. HR. Jr Manager. for his guidance and encouragement.Feroz . who has guided me in my project work.H. MAHLE INDIA PISTONS Ltd for giving me an opportunity to carry out my project in their esteemed organization Words are too few to express my deep gratitude to Mr. for helping me in carry forward of my project 5 . I am greatly indebted to him for his unweaving commitment through provoking discussions and constructive comments to improve my work.S.M.M. Sr Manager. I am extremely grateful to the Staff of Human Resource department. I am thankful to DR D. RAJAN BABU. GAYATRI VIDYA PARISHAD COLLEGE FOR DEGREE AND PG and who has also been my internal guide.Acknowledgement I express my deep sense of gratitude to Sri. I am thankful to DR.L Deepak Field in charge for M.R. GAYATRI VIDYA PARISHAD COLLEGE FOR DEGREE AND PG for his guidance and encouragement.R.
..........Research Methodology... Annexure.. The Methodology............ ............. Company Profile...............................Table of Contents Theoretical Framework............. ...... .....-.... Sources of data Sampling Data analysis & Interpretation........ Suggestions.......... Bibliography...... The Industry................ . ... . .......................... ................- ........ ..... Conclusion.........
THEORETICAL FRAMEWORK 7 .
has been defined as “The art of getting things Management is further defined as “that field of human behaviour in which managers’ plan. It means that the management can get and use the skill. It is a long term & short-term perspective. knowledge. organize. Through the development of skills tapping and utilizing them again and again. direct and control human. creative abilities. ability etc. talents and aptitudes of an organizations workface as well as the value attitudes and beliefs of the individual involved. It is also regarded as human factor. . The term human resource means According to Leon C. HR is like any natural resource. skills. human asset. and human capital. staff.HUMAN RESOURCE MANAGEMENT INTRODUCTION Management done through people”. Megginson the term ‘resource’ can be thought of as the total knowledge. physical and financial resources in an organized effort in order to achieve desired individual and group objectives with optimum efficiency and effectiveness.
and labour –management relation.NATURE AND SCOPE OF HUMAN RESOURCES: People in any organization manifest themselves not only through individual sections but also through individual section but also through group interactions. Individuals come to workplace then they have not only technical skills. labour administration. and human capital management. motives. personnel management. Employee Management in an organization does mean management of not only technical skills but also other factors of Human Resource. 9 . knowledge etc. industrial relations. They are labour management. values etc. maintaining and compensating their services in tune with the job and organizational requirements. MEANING OF HUMAN RESOURCE MANAGEMENT: Different terms are used to denote human resource management. But they have personal feelings. perception. developing their resources. personnel administration. desires. attitude. HRM and the like. In simple sense human resources management means employing people. utilizing. human asset management. employee-employer relations.
and productivity depend upon the remuneration he or she receives. His or her standard of living. It is that part of management which is concerned with people at work and with their relationships with in an enterprise.related and salary. For HRM too. . Since employee remuneration is such an important subject. motivation. loyalty. Compensation is a remuneration an employee receives in return for his or her contribution to the organization. employee remuneration is a major function. effective management of employee compensation is critical because of the total operating costs. considerable space is devoted in books and periodicals for detailed discussions of wage. many battles (in the form of strikes and lockouts) are fought between the employer and the employees on issues relating to wages or bonus. employee remuneration is significant because of its contribution to the cost of production. From a cost perspective alone. For the employer too. It is all the most in some labour intensive organizations. status in the society. It applies not only to industry and commerce but to all fields of employment”. The HR specialist has difficult task of fixing wages and wage differentials acceptable to employees and their leaders.related problems. Employee compensation decisions are crucial for the success of an organization. Besides. Remuneration occupies an important place in the life of an employee.“Personnel management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists.
skill acquisition. perquisites and non-monetary benefits. cooperation. ultimately the effectiveness of the organisation and its units. Another reason for studying compensation from the organization's perspective is to assess its impact on a wide rage of employee attitudes and behaviors and. and benefits. Ehrenberg and Milkovich (1987) have defined pay level as the “average compensation paid by a firm relative to that paid by its competitors”. bonuses.Of curse cost is only one part of the picture it is also necessary to evaluate an employees contribution to the organization in exchange. performance. incentives. To be specific. typical remuneration of an employee comprises – wage and salary. Compensation may directly influence key outcomes like job satisfaction. and so on. Components of Compensation: An average employee in the organised sector is entitled to several benefits – both financial as well as non –financial. Wages and salary: 11 . fringe benefits. stock option. Compensation includes any direct or indirect payments to employees such as wages. flexibility. retention. attraction.
Individual incentives are applicable to specific employee performance. seniority and merit. or cost reduction efforts. Fringe Benefits: These include such employee benefits as provident fund. Wages and salaries are subject to annual increments. hospitalization. The amount is later divided among group members on an equitable basis. Incentives: Also called “payments of results” . uniform. and (ii) group incentive programmes. irrespective of the number of hours put in an employee. incentives are paid to the group as a whole. recreation and the like.Wages represent hourly rates of pay. Incentives depend upon productivity. health and group insurance. They differ from employee to employee. accident relief. sales. and salary refers to the monthly rate of pay. incentives are paid in addition to wages and salaries. gratuity. Where given task demands group effort for completion. canteen. and depend upon on the nature of job. Perquisites: . There are (i) individual incentive schemes. profit. medical care.
COMPONENNTS OF EMPLOYEE COMPENSATION C O M P E N S A T IO N F IN A N C IA L N O N IN A N C IA L -F H ourly and m onth ly rated wa ges salarie s Incentives Individ ual P lans G roup pla ns Fring e P erquisites B enefits P .These are allowed to executives and include company car. Non-monetary Benefits: These include challenging job responsibilities. Perquisites are offered to retain competent executives. paid holidays. growth prospects. comfortable working condition. furnished house. stock option schemes. . competent supervision. club membership. D irect Indirect 13 . Job C o nte xt C hallen ging job R espo nsibilities R ecog nition G row th prospec ts S upervision W orking conditio ns Job sh aring etc.F C o m pany car G ratuity C lub m e m b ership M edical care P aid holidays A ccident relie f Furnish ed hou se H ealth and S tock option G roup S chem es etc . recognition of merit. and job sharing and flexi time. and the like. Insurance etc..
The compensation issues commanding most interest today and likely to continue in future will centre around questions of compensation levels and compensation structures. Disputes between employers and unions over wages and salaries are often a part and parcel of conflicts over such diversified . how they should be covered. This involves an understanding of various influences controlling compensation. In some cases. Closely related to this is the broad question of the determinants of the compensation relationships. sudden change in technology. region. The employee’s emphasis may be on higher compensation to offset their increased cost of living and perhaps the price his skill will fetch in a competitive job market.Compensation Issues: The main problem facing any organization is the laying down a fair and equitable compensation system. firm’s competitive standing. the process is complex. A decision about compensation rates in a given situation has to be reconciled with a variety of considerations such as when pay rates should be changed and by how much. source of labour supply. For instance. matters. general sales-and-profits prospects of the industry. Obviously. industry. the nature of decision making bodies and the different decision making bodies and the different traditions and customary attitudes that have developed in individual firms or industries. While the objective is simple. the controlling influences may be standards and mores of a particular locality or region. and so on. the employer will be concerned primarily with productivity. this will raise questions concerning the level of compensation rates in the plan or firm. or nation.
The basic aim of compensation administration is to attract.One of the considerations in formulating a pay package is the quantum of take-home pay. some of which are taxable. organisations have taken recourse to fringe benefits. In this context. the design and maintenance of pay structure. The incidence of tax. The balance between what is received now and what he will get on retirement is normally. Compensation Administration: Compensation administration deals with techniques and procedures for designing and maintaining salary structure regarding staff. after an employee has paid for his deductions. the operation of salary progression systems. either on money incomes or on the total taxable income including perquisites. recreation will necessitate a larger income. in terms of a house and a steady income to maintain his habituated life style. that is the net packet. Another related issue is salary and tax planning. medical treatment. has to be worked out. In his later years an employee will need to provide for his old age. It is concerned with: 1. retain and motivate employees by developing and marinating competitive and equitable salary structure. 2. 15 . children’s education. and exercising pay control. Some of these deductions are savings for old age like Provident fund and pension schemes.
the provision of employee benefits and other allowances. The following aspects of compensation planning and administration are of particular importance at the executive and managerial levels: (i) position level. (iii) performance appraisal (iv) incentive bonus plans.3. However. and 4. • Compensation paid to various individuals in an organization should reflect the comparative value of their respective contributions to that organization. and (v) supplementary forms compensation. (ii) the salary structure. Pay Survey: Organisations attempt to gather information about pay practices of competitors through the use of pay surveys. finding the . • Compensation decisions should be made and communicated in a way that is perceived as rational fair. the development of a total remuneration policy. The key requirements for effective compensation administration are: • Compensation should be competitive with what other employers are paying for similar skills or similar jobs.
and b) whether to give more weight to either the product or labour market. and (b) the costs of recruiting replacements are high. product market comparisons are likely to deserve greater weight when (a) labour costs represent a large share of total costs. For example. and (d) employee skills are specific to the product market. there are probably several factors that argue in favour of emphasizing one or the other. The organizations must decide: a) which employers are its key competitors in both its labour and product markets. and will remain so. (c) the supply of inelastic. In considering the latter decision.“going rate” of pay may be easier in the theory than in practice. In contrast. labour market comparisons may be more important to the extent that (a) attracting and retaining qualified employees is difficult. (b) product demand is elastic. Administrative decisions on pay involve a range of questions. 17 . including the following: • Which employees are included? • Which jobs are included? • Which jobs are included similar enough to use in benchmarking? • How are the multiple rates of pay weighted and combined in a multiple survey? The choice of the organizations is probably one of the most important decisions in conducting pay surveys.
Under the slogan “equal pay for equal work”. it is very difficult to implement effectively. Where a union represents workers in a company with plants different regions of the country. it is also vital that the internal pay relationship be maintained. FUTURE TRENDS: Introduction of performance related payment systems in various industrial organizations is a much debated topic today. Geographic wage differential implies different rates for the same job in a company and differences in the average wage among regions because of the type of industries located in each. the demand is frequently made to eliminate such differentials within a company.Another phase of comparisions of levels of wages is concerned with wage differentials among the various regions of the country. Although performance related pay appears to be an attractive proposition. Apart from establishing desired relationship with the external market. Periodic review of job evaluation and salary structure is to be carried out to assure the company’s ability to pay on a competitive basis. The organization has to be . one of the pronounced objectives usually is to eliminate geographic wage differentials.
A further problem of relating pay to performance occurs is setting appropriate targets. In such cases a competency based approach might be required. there are many companies that have more than one division operating in different product areas. As interest in individual schemes declines. For example. Examples include legal. where outputs are very difficult to measure. the interest in team-based schemes grows. administrative and research roles.confident that it can measure performance accurately and introduce a scheme that is objective and perceived to be fair. and it is not uncommon for some to benefit from a buoyant market at the same time as others are suffering a collapse in demand. In such circumstances there is a danger. 19 .K and Japan. There are some organizations who see pay as the clearest method of delivering a message to an employee to reinforce the value of teamwork. These have concentrated on gain-sharing and profit-sharing schemes. Another problem of relating pay to performance is how to reward those jobs where it is difficult to set output targets. in which the organization rewards successful behaviors rather than tangible outputs. if targets are not carefully set and reviewed. Teambased pay appears to be growing at a rapid rate in U. There have been a set of recent research findings in the US reporting the success of team-based schemes.
. stock option schemes are likely to gain momentum and popularity as a fringe benefit in many industrial organizations in our country. in our country different types of productivity and profit-linked bonus schemes are operating in different enterprises over a period of years. Its major purpose is to reward performance over a longer period of time and to encourage employees to stay with the organization. For instance. This incentive is used to recognize improved performance and rich contribution of the employees and provides them with an opportunity to build ownership.Incentive schemes play a major part in remuneration system. In future. The recent innovation in the compensation system is stock option.
over a span of nearly six decades.18 million 21 . Today it has 3 world class plants manufacturing pistons.OVERVIEW OF THE ORGANIZATION BRIEF ACCOUNT OF THE ORGANISATION India pistons. gudgeon pin machine shop and piston and ring plants. India’s first auto ancillary manufacturing unit were established in 1949 in chennai. The sembiam plant has grey iron and aluminum foundries. gudgeon pins .circlips and cylinder liners. metallurgical laboratories. all plants are TS 16949:2002 certified and complaint with ISO 14001.5 million pistons. it has grown from strength to strength earning accolades all the way. piston rings. It has an annual capacity of 2. India pistons have three manufacturing plants at sembiam. sengundraam and Maraimalai Nagar near chennai.
The sengundraam plant manufactures piston ring blanks. valve Train systems. MAHLE Gmbh AND IPL: FORMS A JOINT VENTURE NAMED: MAHLE Ipl Ltd The Mahle group headquarter Stuttgart. It has contemporary moulding lines. Multitask process flow for 2 moulding lines and can produce 30 million ring blanks and castings for various applications. cylinder components. Twin crucible Dual Track Furnace. It has an annual capacity of 5 million pistons.6 million alfin inserts – and can manufacture pistons from 38mm to 300 mm dia. The Maraimalai Nagar piston manufacturing facility has dedicated product lines. The 50:50 Joint venture will mainly focused on the . Germany is one of the 30 largest automotive suppliers for piston systems. air mgt system and liquid management system.0. The Maraimalai Nagar unit of India piston Ltd near chennai has been hired off as a separate entity for launching the Joint venture.rings. Mahle will provide the technology and industry initiatives that will help the Joint venture to be competitive in the Indian automotive Market. India piston Ltd formed a joint venture with Mahle Gmbh of Germany to manufacturing pistons for advance engine application. each consisting of an integrated foundry and a machine shop with high level of automation and online inspection systems.5 million cylinder liners.
This capacity will be doubled with in3 years. The expansion envisages Indian piston and its Joint venture emerging as a technologically advanced Manufactures in the automotive industry in the automotive industry & caterings top specialized application in defense.production of pistons for gasoline and diesel engine requiring compliance with future emission regulation like Euro IV . railway besides doubling its annual exports. The facility will have a production capacity of 3.3 years. HISTORY Established India piston Ltd Inauguration of Maraimalai Nagar piston plant QS 9000 & TS 16949 certificate 100PPM award from Hyundai automated Foundry & gasoline piston Machining line cooling Gallery piston production commenced automated diesel foundry and MC line ISO 14000 & MS mahle – IPL Joint venture MIPL PLANT DETAILS 23 . the Joint venture will introduced New piston design with oil cooled galleries for new diesel engine generation.2 million pistons per year. It is drawing upon expansion programs involving an outlay of about INR 2000 Million over the next 2. The company will employ 300 people and is expected to machine a sales turnover of 160 crore. construction.
45 kms south of chennai total area : 36850 sq. We believe and committed to have a performance appraised process & to faster a climate of trust and achievement orientation.trust and encourage one another to excel in achievememts. km built up area : 89390 sq km connected load: 4000 kva back up power : 2760 KVA CORE VALUES customer satisfaction quality safety & environmental care total employee involvement we always wish to be identified as an organization . location : Maraimalai Nagar. Our reward system shall support & develop the people by rewarding the best performance skill & development initiative.where our employees are in an environment of warmth. NATURE OF ACTIVITY .
suggestions. circlips and cylinder liners. It is necessary that employees are made aware of their mandate participate in the work and have clear areas of authority & responsibility.The world class pistons have the most advanced equipment to manufacture pistons. Gudgeon pins. Surface treatment) COMPANY PHILOSOPHY Mahle IPL (MIPL) shall have empowered employees proactive in every situation shouldering responsibility for both themselves & for the company. 25 . Machine. opinions are great values & treated constructively. They also ensure that every employee has the opportunity to influence his/her own working conditions. piston rings. surface treatment) Gasoline pistons (Foundry . work planning.Machining. Durable rubber pistons rings Pistons and rings with less oil or fuel consumption Durabler and reliable cylinder piston Piston and ring made of gassed iron Piston sets made of alloy steel Diesel piston (Foundry salt core. They also encourage teamwork through which we make maximum use of the strengths of diversity in knowledge and experience.
• Special Allowance. .SIGNIFICANCE OF THE TOPIC The compensation in the organization is decided through collective bargaining between the management and the workers. The breakups in the compensation system in the organization are: • Basic. • Adhoc allowance. • Full Attendance. • Conveyance Allowance. • Medical Allowance (for those who are not covered under ESI). • House Rent Allowance. • Educational Allowance. • Variable Dearness Allowance. • Skill Allowance. • Washing Allowance. • Fixed Dearness Allowance.
35 per point in excess of 2500 points for wages payable for june2006 to may2008. POLICY AND PROCEDURE ON DA FIXATION It is agreed by both the parties that the permanent workmen covered by this agreement will be paid with effect from 1.2006 as a three monthly average.2006 and amount of RS 3100 per month as fixed dearness allowance by neutralizing the consumer price index(madras city consumer index base year 1960) upto 2500 points The management agrees to pay a variable dearness allowance at the rates detailed below in respect of every point in excess of the 2500 points of the madrass city consumer price index by 1960 from 1. It is agreed by both the parties that for the purpose of computing the variable dearness allowance of any month the index number shall be basis for the month as under Period computation quarterly average of Payment of applicable month of for D.6.6.40 per point in excess of 2500 points for wages payable for june2008 onwards.A Month in which D. 2) RS 2.A the will be adjusted 27 .• Project Allowance. 1) RS 2.
100/.390/. The workmen will be eligible for the said allowance on proportionate basis for the attendance which should not fall below 20 working days.500 points.will be paid per month. The workmen will become eligible for full amount of attendance allowance by their actual attendance on all working days in the respective month. Attendance allowance: It is agreed between both the parties that attendance allowance of Rs. .per month as fixed dearness allowance by neutralizing the consumer price index (Madras city consumer Base year) upto 2. 3.Feb-april May-july Aug-oct Nov-jan June-august Sep-nov Dec-feb Mar-may June Sep Dec march Dearness Allowance: It is agreed by both the parties that the permanent workmen covered by this agreement effect from 01/06/06 an amount of will be paid with Rs.
gratuity.1300/per month will be paid as HRA.T and other payments related to wages and shall not stand alerted in case of any excess from the existing HRA. It is agreed between both the parties that the HRA will be paid in proportion to the number of days a workmen earns wages in calendar month. It will not be reckoned for the purpose of calculating P.F.Night Shift Allowance: It is agreed between both the parties that the night shift allowance of Rs 30/. Any absence or leave on loss of wages. O. In the event of any HRA becoming payable under any legislation during the period of operation of this settlement. the HRA will be proportionately deducted. shall be adjusted to such benefit. Heat/ Special Allowance: 29 . the HRD being paid.per day based on the actual attendance will be paid for working in the shift extending beyond the midnight with effect from 01/06/06. House Rent Allowance: It is agreed by both the parties that Rs. bonus.
000 .720/. The allowance will be proportionately reduced if the attendance is less than 250 working days.It is agreed by both the parties that Rs.per annum shall be paid to the workmen once in a year as lump sum payment. Leave Travel Re-imbursement allowance: It is agreed by both the parties that a leave travel allowance for Rs 3. Incentive scheme Production incentive This scheme is common for all permanent workmen in the company and all figures given here in are based on total passed pistons” This scheme will come into force only if the total petrol pistons passed quantity exceeds 70. The next payment will be for the previous calendar year. This payment will be made to the permanent workmen working in the foundry department and foundry maintainance.12/per day will be paid as heat allowance based on attendance.
000 1. 50.000 1.000 1.80. Additional incentive shall be based on the actual attendance. 60.000 1.The calculation of total piston passed for petrol and diesel are detailed below: Petrol pistons passed 1. Petrol pistons passed 1. This scheme is applicable only for permanent workmen.000 Amount per month 450 500 550 600 650 ADDITIONAL INCENTIVE: It is agreed by both the parties the for production of passed quantity of 1.000 1.000 Diesel pistons and above will be reckoned for payment of additional incentive as detailed below and the amount per month so earned will be accumulated on an annual basis and paid along with annual bonus amount.50.70.90. 70.000 Additional incentive per month 250 300 350 31 .60.50.000 petrol pistons and 70.000 1.
000 2.000 75.000 95.000 80.000 1.000 1.000 1. 05.000 90. 00. 15.000 1. The amount of bonus mentioned in the clause of the settlement in proportion to the wage/salary earned to all persons covered by the settlements in proportion to the wage/salary earned by them during the respective accounting year on reaching the production norms mentioned there in. . Wage/salary for this purpose will be defined as Basic+FDA+VDA+personal pay applicable to the respective individual subject to the provisions under sec12 of payment of Bonus Act. 80.000 BONUS: 350 350 350 Additional incentive per month 225 275 325 375 425 425 425 425 425 425 425 Bonus payable under this scheme will be a lump sum amount linked to quantity produced. 1965. 10. 90.000 85.000 Diesel Pistons Passed 70.000 1. 20. 00.000 1.1.
00.5 17.0 18.will be made to all the permanent workmen on annual basis towards actual premium paid for MEDICLAIM INSURANCE POLICY. 1.4 27.5 20. Statutory compliance: 1.6 28. Employee Provident Fund 33 .prospectively. It is clearly understood that premium in excess of Rs.0 It is agreed by both the parties that all the permanent workmen who are not covered by Employee State Insurance Act.0 INSURANCE COVERAGE: BONUS% 15. This will be strictly exercised based on the premium receipt of the insurance.000/. It is also agreed that a reimbursement for a maximum of Rs. 1948 are to be covered under personal accident policy for the value of Rs.PISTONS (in Lakhs) 26. 1200/. This Scheme will be effective from 01/06/2007 and hence forth reimbursement will be done in the month of April every year. which ensures the coverage of the concerned employee.if any should be borne by the employee concerned.8 30.1200/.
Coverage under medical benefits/maternity/accidents.75% is contributed by employer 3. After retirement he/she will receive Pension. 1.According to the provident fund Act of 1952. for medical or any other requirements of the employee. This amount is been deducted in installments from the employee’s monthly salary. Professional Tax According to the state government policy professional tax is charged.33% is paid for Pension Fund and remaining 3. 2.67% will be added to Provident Fund. Bank Loans: . From 12% of employer contribution 8. 500/-of Gross Salary are covered under ESI Act. Non-statutory compliance: Salary in Advance: In some cases salary is paid in advance to the employee’s whenever there is a need or in some emergency like.75% is contributed by employees 4. Employee State Insurance According to the Employee State Insurance Act of 1948 employees below 7. both employee and employer have to contribute 12% from their basic salary towards provident fund.
1948 are covered under this act. 1972. employees who are not covered under ESI Act. According to contract Labour (regulation & abolition) Act 1970. If the damage amount is high then the deductions is done in installment process. As per this act it is mandatory to maintain statutory registers for wages. Damages: If any damage of the Company property is done in the hands of the employee the amount for the damage done is been deducted from the employee’s salary. Minimum Wages and Contract Labour As per the Minimum Wages Act. semiskilled or unskilled are assured of minimum wages. 35 . master roll. details of employees. GRATUITY Employees who have rendered minimum 5yrs of service are paid Gratuity as per the Payment of Gratuity Act. overtime. contract Labour licensing is acquired and all the welfare facilities are provided and also engaging the sub-contractors. 1923.If the employee have any bank loans the amount of monthly payment to the bank is been deducted from the employee’s salary. Workmen Compensation According to the Workmen Compensation Act. 1948 all workers weather skilled.
e.Calculated as Basic i. METHODOLOGY . (Last drawn salary)/26 days * 15days * no Of Continuous service.
NEED FOR THE STUDY: The need for the study in particular to this organization is the company wants to satisfy their employee’s with their compensation system. The survey conducted focuses on the satisfaction levels of the employees of the organization. OBJECTIVES OF THE STUDY: To IPL. SELECTION OF THE TOPIC: The selected topic “Employee Compensation Survey” is suggested by the Senior Management. The survey there on has been conducted basing on their suggestions.METHODOLOGY: TITLE OF THE STUDY: The title of the study is “Compensation Management” in Mahle India Pistons limited. To analyze the view of the employees on the existing understand the concept. components and policies of compensation system of Employees at various levels of Mahle compensatory system and to find their satisfaction levels 37 .
. A questionnaire on compensation is been filled by the employees according to their availabilities in the company.thereon. To assess with effectiveness of the compensation methods followed in the company SCOPE OF THE STUDY: The scope of the present study has been confined to the above objectives and has been limited to a 355 employees of various divisions in Mahle India Pistons Limited POPULATION AND SAMPLE: A population of 30 employees from various departments was taken for purpose of the study.
.PRESENTATION OF THE STUDY: The present study is divided into five chapters and they are as follows: CHAPTER 1: Gives a clear picture of the Theoretical Framework of the concept taken from various sources.In this chapter the compensation system of the company is been explained in brief. DATA COLLECTION: 39 . CHAPTER 2: Gives an account of the profile of the organization and also gives an overview of the compensation system in Mahle India Pistons Limited. CHAPTER 3: This explains the methodology adopted in order to interpret and analyze the findings of the study. suggestions and conclusion arrived at during the course of the study. CHAPTER 4: Gives in detail the interpretation and analysis of the survey undertaken during the project study CHAPTER 5: Gives an insight into the findings.
It also includes the scheduled questionnaire. tabulated and analyzed both quantitatively and qualitatively by using various graphs and diagrams. Journals and Company websites. ANALYSIS OF DATA: Data collected has been presented. Records. It was distributed among the respondents for their views analysis. . which was prepared to collect the required data and information on different HR activities. SECONDARY DATA: The secondary data was collected from various text books on Human Resource Management. observations and interaction with different grades of employee’s.PRIMARY DATA: The primary data comprises the information from discussions.
1. the responses were given in an hurried manner. Due to non availability of the employees the questionnaire may not be supplied and taken back.LIMITATIONS OF THE STUDY: There have been some limitations as per the study carried on. on the topic. 4. So. Employee Compensation Survey. The employees did not have the time to properly access the questionnaire. 3. Since all the employee’s in the organization cannot be covered only 30 members is taken into the account for sampling. 41 . The employees gave their suggestions for the development of their organization. 2.
DATA ANALYSIS .
1 that most of the employees agree that their organization is providing them a satisfied compensation.1 17% 83% 1 2 Interpretation: It is clear from the figure 5.N o 1 2 Respons e Yes No Total with compensation system in your No Of Response 25 5 30 % of Response 83 16 100 Figure 5.1 Sl. Are you satisfied organisation? (Y/N) Table 5.1. 43 .
.2 Respons e Yes No Total % Response 63 37 100 of Sl.2.2 37 % 63% 1 2 Interpretation: Most of the employees are satisfied with the pay they receive for the work performed or for their contribution to the organization. Do you feel that the pay you receive for your work is satisfactory? (Y/N) Table 5.No 1 2 No Of Response 19 11 30 Figure 5.
Is your company paying you the suitable wage when compared to its competitors? (Y/N) Table 5.N o 1 2 igure 5. 45 .3.3 Sl.3 F Respons e Yes No Total % Response 67 33 100 of No Of Response 20 10 30 33% 67% 1 2 Interpretation: Most of the employees are satisfied with the salary they receive when comparing the payment to their other competitors.
4 Respons e Yes No Total FiFigure 5.4 % Response 77 23 100 of Sl. Do you receive the allowances allotted to your grade? (Y/N) Table 5. positively about the allowances provided by their .No 1 2 No Of Response 23 7 30 23% 77% 1 2 Interpretation: It is clearly visible from the figure that the employees are responding organisation.4.
5 7% 93% 1 2 Interpretation: Employees on gratuity responded well and 93% of employees agreed 47 .N o 1 2 Respons e Yes No Total % of Response 93 7 100 No Of Response 28 2 30 Figure 5.5 Sl.5. Do you have Gratuity facility? (Y/N) Table 5.
as they receive gratuity as per the act but only 7% of employee’s answered no. .
49 .6 17% 83% 1 2 Interpretation: The company is providing shares to the employee’s through Employee Stock Option scheme and 83% of employee’s agree that they receive shares and only 17% people disagreed. Does the company provide you any kind of profit – sharing bonus or ESOP Scheme? (Y/N) Table 5.6: Sl.N o 1 2 Respons e Yes No Total No Of Response 25 5 30 % of Response 83 17 100 Figure 5.6.
7 No Of Response 30 0 30 % of Response 100 0 100 0% 100% 1 2 Interpretation: There is a tremenderous response for this question related to Bonus/Exgratia. Do you receive Bonus/Exgratia? (Y/N) Table 5. . Maximum employees responded positively and 100% employees agreed for this question with the answer yes.7.N o 1 2 Respons e Yes No Total Figure 5.7 Sl.
N o 1 2 Respons e Yes No Total No Of Response 17 13 30 % of Response 57 43 100 Figure 5. Does any other financial benefit like Personal loans. 57% of employees responded positively and 43% answered negatively. are provided? (Y/N) Table 5.8 43% 57% 1 2 Interpretation: The response on other financial benefits like personal loans..8. Salary in advance. as they do not receive any such benefits. salary in advance etc.8 Sl. Loans for children education etc. 51 .
Do you have any Insurance Policy provided by the company? (Y/N) Table 5. 53 .9: Sl.9.N o 1 2 Respons e Yes No Total Figure 5.9: No Of Response 24 6 30 % of Response 80 20 100 20% 80% 1 2 Interpretation: The company is also providing with life insurance policy to the employee’s and the response on insurance policy is only 20% employee’s opposed and 80% agreed as they receive such benefit.
10.10: Sl.N o 1 2 Respons e Yes No Total % of Response 77 23 100 No Of Response 23 7 30 Figure 5.Does the company pay for the employees to go on Training courses? (Y/N) Table 5.10: 23% 77% 1 2 .
Interpretation: For training courses 23% of employee’s answered no and 77% of employee’s agreed as the company pay for the employees to go on training course. 55 .
Does the company give subsidized meals to employee through canteen? Table 5. .11.11 40% 60% 1 2 Interpretation: The response for the question on Dearness Allowances is 60% of the employee’s are not satisfied.N o 1 2 Respons e Yes No Total No Of Response 12 18 30 % of Response 40 60 100 Figure 5. and according to them no dearness allowances are provided to them.11 Sl.
12: Sl.N o 1 2 Respons e Yes No Total Figure 5. 57 .Does the company provide you with leave encashment facility ? (Y/N) Table 5.12.12: No Of Response 25 5 30 % of Response 83 17 100 17% 83% 1 2 Interpretation: The company is providing the employees with leave encashment facility and only 17% responded as they do not receive such benefits but 83% agreed as they receive leave encashment facility .
. 59 .13: Sl. like they do not receive any such benefits.N o 1 2 Respons e Yes No Total Figure 5. ? (Y/N) Table 5.Do you have any additional Fringe Benefits like credit cards. only 30% of employees agreed that they receive such fringe benefits. service management etc.13.13: No Of Response 9 21 30 % of Response 30 70 100 30% 70% 1 2 Interpretation: On fringe benefits 70% of employees are not satisfied.
. marriages etc.N o 1 2 Respons e Yes No Total No Of Response 19 11 30 % of Response 63 37 100 Figure 5.14. like retirements. ? (Y/N) Table 5.14: 37% 63% 1 Interpretation: 2 63% of employee’s agreed that they receive gifts from the company for some functions like marriages or any others. Does company award gifts to employees for any reasons other than long service. 37% of employees disagreed as they people do not receive any such benefits 61 .14: Sl.
Job security in your organization is good ? (Y/N) Table 5.N o 1 2 Respons e Yes No Total No Of Response % of Response 30 0 30 100 0 100 Figure 5. .15.15: 0% 100% 1 2 Interpretation: On job security 70% of employee’s responded as they have good job security in their organization and 30% of employees responded as they have no job security.15: Sl.
Are you happy with the welfare measures provided by your company ? (Y/N) Table 5.16: Sl.16.16: 3% 97% 1 2 63 .N o 1 2 Respons e Yes No Total No Of Response % of Response 29 1 30 97 3 100 Figure 5.
.Interpretation: There is a good positive response for Welfare measures 97% of employees agree as they receive such benefits but only 3% denied.
17 23% 77% 1 2 Interpretation: 65 .Are you satisfied with the present company’s compensation benefits ? (Y/N) Table 5.17.17: Sl.N o 1 2 Respons e Yes No Total No Of Response % of Response 23 7 30 77 23 100 FIGURE 5.
77% of the employees are happy with the compensation benefits in the company and 23% disagreed as they are not happy with the compensation benefits in the company .
through Compensation System? (Y/N) Table 5.18: Sl.N o 1 2 Respons e Yes No Total No Of Response % of Response 25 5 30 83 17 100 Figure 5.18.18: 17% 83% 1 2 Interpretation: On over all rating on compensation system in the company 83% of employees are satisfied with the compensation system.Are you totally satisfied with what the company providing. 67 . only 17% of people disagreed as they are not completely satisfied.
19: 3% 97% 1 2 .T.19: Sl.N o 1 2 Respons e Yes No Total No Of Response % of Response 29 1 30 97 3 100 Figure 5.A and Medical benefits? (Y/N) Table 5.19. Does the company provide you with L.
20: Sl.Interpretation: There is a good positive response for L.T. 20.N o 1 2 Respons e Yes No Total No Of Response 24 6 30 % of Response 80 20 100 are the most Figure 5.20: 20% 80% 1 2 69 .A and Medical facilities 97% of employees agree as they receive such benefits but only 3% denied.Management believes that employees important assets of our firm ? (Y/N) Table 5.
.Interpretation: The company is also providing with management believes the most important to the employee’s and the response on insurance policy is only 20% employee’s opposed and 80% agreed as they receive such benefit.
CONCLUSION AND RECOMMENDATIONS CONCLUSIONS: 71 .
• The new joiners are well treated in the time of induction and been well supported by their superiors. • The management is maintaining good relationship with the employees. • Employees are satisfied with the allowances provided by the organization • The organization has a sound wage structure RECOMMENDATIONS . • Working conditions are good. • A friendly relationship is been maintained between the subordinates and superiors.• The work environment is good and the employee’s are well disciplined and sincere at their work. • Effective Teamwork is good. • Welfare measures provided are good. • Drinking water and urinal facilities are good. • Meetings like Management Development Programs are very helpful to the trainees. • Supported the project trainees by providing the necessary information until the completion of the project information.
• Employees would feel good if the company provided them with subsidized meals through canteen facility. • Being summer, to make the employee’s more convenient to work, it will be good if they are provided with air conditioners. • Telephones are been miss using a lot in the office; better avoid this miss use, in order to avoid heavy bills. • Providing the employee’s with financial support through ESOP is appreciable. • The base year of the consumer price index is very old. It would be better if they opt for some recent year. • It would be appreciable if the management also opt for skillbased pay as the organization is providing the incentives based on production. • Educational allowances can be provided to the permanent workmen. • Transport allowances can also provided to the permanent workmen as they come from far away places.
Bibliography Books Followed:
P. SubbaRao: Human Resource Management V.S.P. Rao Robbins : Personnel Management : Personnel Management
A.M. Sarma: Understanding Wage System Edwin. B. Flippo: Personnel Management
WEB SITIES: WWW.GOOGLE.COM WWW.HUMANLINKS.COM WWW.HRGURU.COM WWW.COMMERCE-DATABASE.COM WWW.BUSINESSRANKS.COM WWW. Mahle ipl.COM Www. Citehr.com
V.P.APPENDIX Questionnaire on Employee Compensation Survey I am S. Kindly requesting you to fill the following Questionnaire with the .M G. Visakhapatnam.Kalpana student of M.H.R.G College.P .
Loans for children education etc. Do you have any Insurance Policy provided by the company? (Y/N) 11. Are you satisfied with compensation system in your organization? (Y/N) 2. Name: ____________ Grade: _______________ Employee code: ___________ Department: ______________ Please tick the options followed 1. This is only for my survey purpose. Is your company paying you the suitable wage when compared to its competitors? (Y/N) 4. Do you receive Bonus as per the act? (Y/N) 6. Does the company provide you any kind of profit – sharing bonus or Share allocation Scheme? (Y/N) 10. but not for any other use. Does the company provide you with leave encashment facility? (Y/N) 12. Do you feel that the pay you receive for your work is satisfactory? (Y/N) 3. Does the company give subsidized meals to employees through canteen? (Y/N) 77 . Does the company pay for the employees to go on Training courses? (Y/N) 13. Do you have Gratuity facility as per the Act? (Y/N) 9.suitable options provided. Is Dearness Allowance applicable in your company? (Y/N) 7. are provided? (Y/N) 8. Salary in advance. Does any other financial benefits like Personal loans. Do you receive the allowances allotted to your grade? (Y/N) 5.
A and Medical benefits? (Y/N) 20.. Job security in your organization is good? (Y/N) 18. Are you totally satisfied with what the company providing. Are you happy with the Welfare measures provided by your company? (Y/N) 17. .14. Do you have any additional Fringe Benefits like credit cards. like retirements. service management etc. for your kind co-operation. ? (Y/N) 16. Does company award gifts to employees for any reasons other than long service.T. marriages etc. through Compensation System? (Y/N) Thank you. Does the company provide you with L. ? (Y/N) 15. Are you satisfied with the present company’s compensation benefits? (Y/N) 19..
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