“A STUDY OF COMPENSATION

MANAGEMENT SYSTEM & ITS

IMPACT ON EMPLOYEES IN
PEPSICO.”
• A Summer Training Report On “A STUDY OF
COMPENSATION MANAGEMENT SYSTEM & ITS IMPACT
ON EMPLOYEES IN PEPSICO.” Submitted to Kurukshetra
University, Kurukshetra In the partial fulfillment of the
Degree of Master of Business Administration (Session
2018-20) Under Supervision of: Submitted by: Mr. Raj
Kumar Amandeep Kaur Manager Class Roll No.-1908
Univ. Reg.- Univ. Roll No.-
• S D INSTITUTE OF MANAGEMENT & TECHNOLOGY,
HUDA Road, Jagadhri 135003 (Yamuna Nagar) Haryana
Phone: +91 1732 224340, 225340 http://
www.sdimtedu.com
• Affiliated To KURUKSHETRA UNIVERSITY,
KURUKSHETRA
COMPANY PROFILE
• PEPSICO COMPANY
Introduction:
• Pepsi-Cola and Frito-Lay.
• PEPSICO, Inc. founded by Donald M. Kendall, President and Chief Executive Officer
of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-
Lay, through the merger of the two companies.
ABOUT THE COMPANY
• entered India in 1989 and has grown to become one of the largest food and beverage
businesses in India
• Mission and Vision
At PEPSICO, we believe being a responsible
corporate citizen is not only the right thing to do,
but the right thing to do for our business
PEPSICO India Beverages
PEPSICO India Foods
INTRODUCTION
TO THE TOPIC
• Compensation management is something
that companies must take seriously if
they are to achieve a competitive
advantage in the market for talent.
• ―If company pick the right people and give
them the opportunity to spread their wings - and
put compensation and rewards as a carrier
behind it - you almost don‘t have to manage
them.‖
• — Jack Welch
ADVANTAGES OF COMPENSATION AND
BENEFITS
Job satisfaction

Motivation

Low Absenteeism:

Low Turnover
 A COMPENSATION STUDY CARRIED OUT IN AN ORGANIZATION
GENERALLY INVOLVES FOLLOWING IMPORTANT ELEMENTS:
• Analyzing the current situation and requirements of the organization
• Conducting salary/wage surveys and interviews within the organization .
• Studying the various positions or jobs as existing in the organization
• Restructuring and redefining the positions, according to needs
• Defining the internal worth of the different positions in the organization
• Ranking the various positions and jobs in the company

• Evaluating the existing base compensation plan of the organization

• Identifying and evaluating the market pay structures
• Revising the base compensation plan in the organization
• Matching the changed compensation package with the current fiscal resources of the
organization
• Comprehending the impact of pay revisions
• Preparing an elaborate report on the compensation studies to be submitted to the top
management
OBJECTIVES OF THE STUDY

1. To study and analyze Compensation

Management System in PEPSICO..
2. To study the gap in terms of compensation
components offers by the PEPSICO. expected
by the employees.
3. To analyze the factors that hinders the
Compensation Management System.
4. To know the effects of compensation management
system on productivity level of employees.
5. To know the satisfaction level of employees with
respect to their current compensation structure.
RESEARCH
METHODOLOGY
• TYPE OF RESEARCH (Descriptive
Research )
• RESEARCH DESIGN (It is the conceptual
structure within which research is conducted )
• SCOPE OF THE STUDY
• DATA COLLECTION (Data collection is a
technique by which we have to collect data or it
is a strategy for editing, coding and decoding the
data from various sources. )
• SAMPLING DESIGN
• INSTRUMENT TO BE USED(Questionnaire
)
• TARGET POPULATION(Employees of
PEPSICO)
• SAMPLE SIZE (100 Employees )
• SAMPLING METHOD (Convenience
Sampling )
LIMITATIONS OF THE STUDY
• 1. Time constraint
• 2. Lack of interest.
• 3. Employees were reluctant to express their views
regarding Compensation Management system of
organization.
• 4. Respondents may be biased in favour of
management.
• 5. Due to pressure of management, respondents
were reluctant in communicating.
• 6. Difficulty was faced in getting the responses to
various questions because respondents
 DATA ANALYSIS
&
INTERPRETATION
1. Does your pay matches your job Performance?

Response % of Respondents

YES 56
NO 44 YES
NO

Interpretation:
Out of 100, 56% respondents feel and say that their pay matches their job
performance & 44% respondents feel their pay doesn‘t match their job performance.
Objective fulfilled
The question fulfils the objective To study and analyze Compensation Management
System in PEPSICO.
 2: Does your supervisor always try to make sure that you are fairly
compensated?

STRONGLYAGREE

10%
10% AGREE

20% 40% NEUTRAL

DIAGREE

STRONGLYDISAGRE
20%
E
Interpretation:
• Out of 100, 40% respondents Agree, 20% strongly agree, 20 % Neutral, 10%
Disagree & 10 % strongly disagree, with the fact that their manager always
ensure that they are fairly compensated.
• Objective fulfilled
• The question fulfils the objective To study the gap in terms of compensation
components offers by the PEPSICO. expected by the employees
 3: Are you informed about the compensation &
benefit programs at organisation?

International:
40% employees say that they are sometimes informed, 35% are informed very often, 10% are
rarely informed & 15% they never get informed about the compensation & benefit program in
the organisation.
Objective fulfilled
The question fulfils the objective‖ To study and analyze Compensation Management System
in PEPSICO.