A STUDY ON WAGE PROCESSING

AND
TREND ANALYSIS OF WAGE COST

SHASHI BHUSHAN KUMAR

USN -1AZ09MBA46
SESSION – 2009-2011
INDUSTRY PROFILE: - Steel industry

COMPANY PROFILE:-
Tata steel formerly known as TISCO and Tata Iron and Steel
Company.
Its main plant is located in Jamshedpur, Jharkhand. It is established in
1907 in Jamshedpur.
It is world’s seventh largest steel company, annual crude steel capacity
of 31 million tonnes. It is the largest private sector in term of
domestic production.
 It is listed on B.S.E. and employs about 82,700 people.
Net profit 423.5 million in 2010.
JHARIA DIVISON:-
It is a single largest set up after jamshedpur, it spread across, 5000
acres; six collieries of Jharia division, 5 underground coal mines
operating , maximum depth 600m, it produced 15.7 lakh tonnes raw
coal and 9.04 tonnesof clean coal. 6233 workers work in Jharia
division.

VISION: - “ we aspire to be the global steel industry benchmark for

value creation and corporate citizenship”.

MISSION: - Effective utilization of staff and material and achieve

the high technology and productivity.

PRODUCT: - Hot and cold rolled coils and sheets, galvanized sheets,
tubes, wire rod, construction re-bars, rings and bearings.
AREA OF OPERATIONS : -
Tata steel Europe(Corus), Tata steel Thailand, NatSteel Holding, Iran,
In India - Orissa, Jharkhand, Chhattisgarh,

COMPETITORS: - The main competitors in the market of Tata

steel is SAIL, JSW steel, VISA steel.

Mckinsey’s 7s frame work: -

Shared values, Strategy, Structure, Systems, Style, Staff, Skill,

SOWT ANALYSIS: -
Strength:- Brand name, Raw material, leading sales, Distribution
capability, low wage labor availability.
Weakness: - Low R&D investment, Low Productivity.
Opportunity: - unexplored rural market, growing domestic market,
growing global demands, high investment infrastructure development.
Threats: - world’s big producer entering in the Indian market, global
economic slow down.
LEARNING EXPERIENCE: -
Know about the payroll computation structure.
Learning about the payment schemes provided by the concern.
Know about the software used for analyzing, computation, and
recording.
Also came to know about the tax deductions and determination.
Learned about discipline and seriousness of the work culture in the
concern.
OVERVIEW OF WAGE PROCESSING OF TATA STEEL,
JHARIA DIVISION
Introduction , employee type, component of wages and wage structure
Work area of payroll section.
An overview of officer’s payroll.
An overview of non officer’s payroll.
Recoveries from salary.
Provident fund (CMPF)
Pension scheme.

SATEMENT OF THE PROBLEM:

Speed in processing payroll tends to be slow.
Tallying of time cards is done manually.
Difficult and time consuming in keeping up-to-date in taxes and
other dedications.
Time consuming of the wage processing system.
OBJECTIVE OF THE STUDY:-
Determine the current wage processing system.
Functionality of the current wage system related to TWCS II.

SCOPE OF THE STUDY:-

Study cover the wage processing and trend analysis of wage cost.
Study cover in the detail all component of wage.

METHODOLOGY:-
Secondary data:- Journal, Books, Annual report, newspaper, Internet.

LIMITATION OF THE STUDY:-

Employees are very limited and duration is limited.
Employees don’t want to be disturbs.
TREND ANALYSIS OF WAGE COST AND FINDINGS
COST COMPOSITION : -
Wage debitable to revenue is 49% of total cost.
Conveyance allowance is raise 11.1% in the F.Y 2010.
Other allowance is normal raise 15.19% and 18.14% in the F.Y.
Companies contribution to P.F is increase of 33.14% in the F.Y.
House rent allowance is increase of 46% .
Leave travel concession is reduced to 8%.
Attendance bonus is raise 71.18% in the F.Y 2010.
Overtime allowance is increased every year at constant rate more
than 70% in the F.Y 2010.
Annual bonus is increased 14.55% in the F.Y.
Accrual leave salary is increase of 33.006% in F.Y 2010.
MAJOR FINDINGS: -
Man roll almost 6233 as on 31st march 2010.
Total wage cost of Jharia division is 49% of Total cost.
Wage cost is increase 35% in the F.Y.
Company contribution to P.F has been increase 33.14% in the F.Y.
House rent allowance is increase 46%.

CONCLUSION: -
The processing of wage is very systematic from recording.
Expense incurred by the organization for wages and rise in cost has
been observed mostly due to the implementation of TWCS-II .
RECOMMENDATION:-
Capacity expansion.
Employee training.
Wage restructuring.
Out sourcing of employees.
Employee motivation.