Project Report On Compensation Management
Project Report On Compensation Management
MANAGEMENT
TABLE OF CONTENTS
1. COMPENSATION MANAGEMENT
2. EXECUTIVE SUMMARY
3. INTRODUCTION TO THE COMPANY
4. HISTORY OF THE COMPANY
5. OBJECTIVES OF THE PROPOSED STUDY
6. RESEARCH METHODOLOGY
7. SCOPE/ RELEVANCE OF PROPOSED STUDY
8. GLOBAL SCENARIO
9. DATA INTERPRETATION AND ANALYSIS
10.COMPANY NAME
11.FINDINGS OF THE SURVEY:
a. CONCLUSION
b. RECOMMENDATIONS & SUGGESTIONS
c. REFERENCE
d. APPENDIX
e. QUESTIONNAIRE
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EXECUTIVE SUMMARY
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If you 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 dont have to
manage them.
Jack Welch
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Components of compensation:Basic wages/Salaries:This refers to the cash component of the wage structure based on which other
elements of compensation may be structured. It is normally a fixed amount which
is subject to changes based on annual increments or subject to periodical pay hikes.
It is structured based on the position of an individual in the organization and differs
from grades to grades.
Dearness allowance:The payment of dearness allowance facilitates employees and workers to face the
price increase or inflation of prices of goods and services consumed by him. The
onslaught of price increase has a major bearing on the living conditions of the
labor. The increasing prices reduce the compensation to nothing and the money's
worth is coming down based on the level of inflation.
The payment of dearness allowance, which may be a fixed percentage on the basic
wage, enables the employees to face the increasing prices.
Bonus:5 | Page
The bonus can be paid in different ways. It can be fixed percentage on the basic
wage paid annually or in proportion to the profitability. The Government also
prescribes a minimum statutory bonus for all employees and workers.
There is also a bonus plan which compensates the Managers and employees based
on the sales revenue or Profit margin achieved. Bonus plans can also be based on
piece wages but depends upon the productivity of labor.
Commissions:Commission to Managers and employees may be based on the sales revenue or
profits of the company. It is always a fixed percentage on the target achieved. For
taxation purposes, commission is again a taxable component of compensation.
The payment of commission as a component of commission is practiced heavily on
target based sales. Depending upon the targets achieved, companies may pay a
commission on a monthly or periodical basis.
Mixed plans:Companies may also pay employees and others a combination of pay as well as
commissions. This plan is called combination or mixed plan. Apart from the
salaries paid, the employees may be eligible for a fixed percentage of commission
upon achievement of fixed target of sales or profits or Performance objectives.
Nowadays, most of the corporate sector is following this practice. This is also
termed as variable component of compensation.
Piece rate wages:Piece rate wages are prevalent in the manufacturing wages. The laborers are paid
wages for each of the Quantity produced by them. The gross earnings of the labour
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d) Entertainment tickets/allowances.
e) Discounted travel tickets.
f) Family vacation packages.
The whole idea of compensation management can be better understood through the
following Pyramid structure.
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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 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.
IMPORTANCE OFCOMPENSATION
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 there turn expected by the landlord,
capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly
the labour expects wages from the process. Labor plays vital role in bringing about
the process of production/business in motion. The other factors being human, has
expectations, emotions, ambitions and egos. Labor therefore expects to have fair
share in the business/production process.
Labor plays vital role in bringing about the process of production/business in
motion. The other factors being human, has expectations, emotions, ambitions
and egos.
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The system should be simple and flexible so that every employee would be able
to compute his own compensation receivable.
o It will raise the morale, efficiency and cooperation among the workers.
It, being just and fair would provide satisfaction to the workers.
o Such system should also solve disputes between the employee union and
management.
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o The business organization can think of expansion and growth if it has the
support of skillful, talented and happy workforce.
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COMPENSATION OF PAYROLL:
Payroll refers to the administration of employees' salaries, wages,
bonuses, net pay, and deductions. It consist of the employee ID,
employee name, date of joining, daily attendance record, basic salary,
allowances, overtime pay, bonus, commissions, incentives, pay for
holidays, vacations and sickness, value of meals and lodging etc. There
are some deductions such as PF, taxes, loan installments or advances
taken by employee.
Payroll is administered on monthly basis and annual basis.
While administrating the monthly payroll basic salary, HRA,
conveyance, and other special allowances such mobile, etc are
considered. There are some deductions
Which are provident fund (12%) of the salary, taxes and other deductions.
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PAYROLL MANAGEMENT:
Payroll is defined as a method of administrating employees salaries in the
organizations. The process consists of calculation of salaries and tax
deductions of the employees, administrating the retirement benefits and
disbursements of salaries to employees. It can also be called as an accounts
activity which undertakes the salary administration of employees in the
organization.
Administrating the employees salaries is not an easy task, the HR and
accounts department work together to calculate and disburse the salary to
the employees. Thus, payroll management can be further subdivided into
two sub processes, i.e. Payroll accounting and payroll administration.
Payroll Accounting
Payroll accounting involves calculations of employees salaries and tax
deductions. It also undertakes the activities such as preparation of tax
returns, maintaining the payroll records, etc.
Payroll Administration
Payroll Administration involves managerial activities such as maintaining
employees records, referring employment laws. Here, the HR comes into
picture which maintains the daily record if employees attendance.
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employee can accept the offer or choose to negotiate details of the offer, usually by
a deadline stated by the employer.
The employer states a deadline to ensure that salary negotiations take place in a
short period of time so that the new employee can start work expeditiously. Or, the
employer realizes that they will not reach an agreement with the candidate and can
contact other qualified potential employees before they are unavailable in the job
market.
Salary negotiations are most effectively conducted by one person who responds to
the candidate after consulting with other organization key players. Using a point
person for salary negotiations eliminates the possibility of mixed messages and
misunderstood or poorly communicated offers and responses. Using a point person
in salary negotiations is another opportunity for the employer to continue to build
the relationship with its selected candidate.
Successful salary negotiations result in an employment contract that is acceptable
to both the employer and the new employee.
Salary Negotiations Subject Matter
Anything and everything in the job offer is negotiable. The amount of
compensation, the benefits package, and the working conditions including days
and hours of employment, work flexibility options, title, and severance pay are all
negotiable.
Salary negotiations depend on the position. Leeway for salary negotiations
generally increases with the level of the position within the organization.
Executives and senior managers have the most leeway for a range of executive
compensation negotiations around salary, benefits, and perquisites or perks.
Approach salary negotiations from a win-win perspective. You don't want a new
employee who joins your organization already disgruntled from the salary
negotiations. At the same time, you don't want an overpaid employee who doesn't
earn his keep and is ineligible for increases in compensation within a reasonable
time frame.
Salary Negotiations Flexibility
The employer's salary negotiations leeway depends on these factors:
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INCEPTION
1911
HEAD OFFICE
NAGPUR
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CITY OFFICES
Mr. E V Murli
BRANCH HEAD
Mr. Sakalkar
SUB- EDITOR
OBJECTIVE OF PROJECT
The project aims at understanding the role of compensation management in
newspaper business and management of vast distribution of an English newspaper
HITAVADA in cities and villages of Chhattisgarh where literacy level is merely
42.9% as per census 1991 data including 36.7% rural and 71.4% urban literacy.
METHODOLOGY
In order to achieve the above mentioned objective and finish the study to
perfection I have made a judicious and a balanced use of primary and secondary
sources of data collection. The primary sources comprise of:
Personal visits to the several news paper agencies gather their feedback
regarding compensation management process.
Intense survey of rural and urban areas of CG and understanding the pattern
how such massive scale recruitment and its policy making.
Direct communication with the person who were knowledgeable and in
charge of operations in every field in THE HITAVADA.
To facilitate my operations I had first chalked out a detailed questionnaire
covering in length all questions that would serve the purpose in the most
efficient and productive manner. The preparations and the formulation of the
questionnaire was on the basis of many assumptions and considerations viz.,
the time the survey audience would require for giving me the required
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answers, the importance of that time and cost involved and copy of said
questionnaire is included in this project a s annexure.
Although the efforts were directed basically towards obtaining information
required for the study from primary sources to the maximum possible extent,
due to factors like:
Lack of cooperation anticipated from several news agencies.
Lack of time for answering the questionnaire by the news officials
Unavailability of person in charge.
I had to resort to secondary sources like websites, magazines,
newspapers etc. Bibliography of these sources forms a part of this
project for ready reference of the reader.
DATA ANALYSIS:
The data gathered for this project are of complete relevance to my
topic of the project. These all survey and statistics reveals clearly that
newspapers have a major role to play in the image building of any
business and also its social image in the society, out of all sources
news papers are considered to be the most reliable sources for getting
authentic information regarding any business or company.
A small loophole of company is revealed in seconds if conveyed to
the media. Any kind of success if conveyed to the society with the
help of print media does wonders for the company. It may attract
many business opportunities after getting awareness about the
company and its brand image.
Taking an example of TATA STEEL it is having huge brand value
and also goodwill. It can be seen if newspapers and other print media
do not highlight their each and every action and performance to the
society it shall have never reached to the masses that TATA STEEL
HAS VALUES STRONGER THAN STEEL.
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REPORT
CONTENTS OF THE REPORT:
PART I
BRIEF INTRODUCTION OF THE COMPANY
HISTORY OF COMPANY/ ORGANIZATION PROFILE.
PART II
INTRODUCTION
OBJECTIVES AND SCOPE
CONCLUSIONS
LIMITATIONS
RECOMMENDATIONS AND OBSERVATION
PART III
APPENDIX
BIBLIOGRAPHY
REFERENCES
GLOSSARY
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FRONT
PAGE
MAIN
REALITY
MONEY
EDITORIAL
SPORTS
NATION
FUTURE
WORLD
WOMEN'S
WORLD
Front page:
It majorly consists of all burning issues related to country and globally which has
an impact over Indian civilians.
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Past time:
This page consists of all refreshing and health related news which
energizes a reader with new and unique information regarding his/her health and
daily routine. Also consist of interesting recipes which could stimulate the daily
life charm. Eg cartoons, amazing facts and concepts.
Nation page:
All social, political and economical news pertaining to have an impact on the
Indian civilians is mentioned in this section of page.
Any such government news which has to be conveyed to masses is conveyed by
this page.
Editorial page:
This page consist of analytical and debatable news which is the result of thoughts
and intense analysis of the eminent social workers, businessman, authors and
several other people involved in continuous study of burning issues globally. They
present a centralized idea of every issue relating to either social or political sectors
within or outside the country.
World page:
It relates to the issues of world which is current happening or follows up.
Business page:
It consists of all business and its performance in the market. The Top level
companies, new mergers and acquisitions, financial information, collapsing of any
firm etc.
This is the section of newspaper which has a great impact over the business firms.
Also a small news also is projected to millions of online and offline readers.
Sports page
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It consist of news relating to all types of players and their performance may it be
cricket, football, volleyball, table tennis, lawn tennis any group or community
game organized country wide or even abroad.
All the above mentioned pages are published and designed to cater several layers
of the society. As well as create awareness relating to all segments of the society.
COMPANY PROFILE:
THE HITAVADA comprises of below mentioned departments:
Desig
The Hitavada
departments
Finance
MR. SAKALKAR
CHIEF EDITOR
RESIDENT EDITOR
Mr. E V MURLI
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SUB-EDITOR
EDITORIAL INCHARGE
TRANSLATION HEAD
PROJECT OVERVIEW:
INTRODUCTION:
The basic notion behind making project on the topic impact of print media in
Chhattisgarh business was to identify the role of upcoming and very popular print
media on the business of state having growth rate of 11.79% in second position
after Gujarat.
OBJECTIVE AND SCOPE OF THE PROJECT:
OBJECTIVE:
Objective while making this project was to understand
the role of print media in the society and companies.
To analyze the effectiveness of print media in
increasing the business of state.
To understand the impact of print media in connection
of suppliers-producers-customers.
To understand the business of print media and its
functioning with the help of THE HITAVADA.
To understand the role of media for cosumer
awareness and publicizing the basic needs and
awareness through advertisements.
Another objective of my project is to understand the
distribution management of a newspaper company.
As we can see in Chhattisgarh itself THE HITAVADA
circulates its newspapers in several areas including:
Raipur
Bastar
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Bhilai
Rajanadgaon
Bilaspur
Konta
Surajpur
Raigarh
Dantewada etc.
DESCRIPTION
ROLE OF NEWSPAPERS IN COMPANYS PUBLICITY:
Newspapers play a very major role in spreading the news good or bad to the
masses. All kind of activities may it be in the public or private sector is highlighted
by the newspapers.
News papers play the below mentioned roles in the business:
Creates a brand image of the company
Generates business through providing them spaces for advertisements
Through newspapers public sector undertakings (PSU)do their many major
functions of as :
o Tender issuing
o Contract request
o Recruiting
o Result declaration
o Performance report
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impacts
economic
positive negative social political
al
POSITIVE IMPACT:
Creates awareness
Increases brand equity
Stimulates sales
Supports advertising
Generates business
Helps to communicate with other stakeholders and share holders connected with
the company.
Eg : as per the information from JCB they told that after giving their
advertisements in newspapers like THE HITAVADA huge response has been
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received from the areas where we can never think of. As currently rural market is
very fertile and untapped and if one allocates a small space in the newspaper then it
is read and received by all the farmers who hardly have time to watch TV or listen
to ads on radio.
NEGATIVE IMPACT:
Rarely the case of negative impact occurs but if any wrong source has a good name
and relation in print media can spoil the name of other competitors by spreading
unwanted and fake news.
E.g.: in case of TATA INDUSTRIES the NEERA RADIA tape case a created
rumors that even TATA was also involved all the conversation were mentioned in
the newspapers which created a very bad image for that company who has been a
leader of business sector in terms of loyalty and integrity.
SOCIAL:
All the companies should focus on having good relations with the print
media. As many organization try and avoid their bad name in newspaper
because it directly hampers their image in the society.
Companies are largely affected socially when few of news may be in favor
or against are mentioned in print media. It is on papers then it may be
referred and exposed to many layers of society and create an undesirable
image.
On the other hand company has immense impact on goodwill when a good
or appreciating news in printed in newspaper.
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ECONOMICAL:
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Diagram:
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Allocation Of News
correspondents
Correction and
and rectification
rectification
Correction
of
of errors
errors
Compilating
Compilating the
the news
news in
in to
to
printable form
Mailing
Mailing the
the dak
dak and
and city
city files
files
to nagpur
to
nagpur head
head office
office
CIRCULATION PROCESS:
The circulation process is managed dynamically in the Raipur branch of
Hitavada. They have a systematic flow of news and its printing in the office.
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Its a day night process people work in shifts for publishing the
newspaper in the rolls and circulate them. There are two departments of :
City department
Dak department
Feature pages
Face 2 Face
All the circulations start early morning at 5 AM.
Diagram showing circulation of newspaper:
printing of
news into
paper
formatt
bundling
of
newspaper
as per the
area and
subscriptio
n
hiring of
agencies
for
circulation
of
newspaper
sending of
newspaper
to
locations
made in all
cities and
villages of
CG
hawkers
pick the
bundles
and throw
them to
the end
subscriber
s
recieve
payments
from the
customers
and send
it to
accounts
deopartme
nt
MARKETING OF NEWSPAPER:
The marketing of newspaper is very crucial and done in a very different
manner, in the newspaper.
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sponsorship
s
charity
work
survey
attractive
plans
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