A Dissertation Report ON
“EMPLOYEES SATISFACTION REGARDING PAYROLL
SYSTEM”
DHAMPUR SUGAR MILLS LTD.
SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT
OF
B
ACHELOR OFB
USINESSA
DMINISTRATION (AFFILIATED TO CH. CHARAN SINGH UNIVERSITY, MEERUT)(ACADEMIC SESSION 2007-2010)
MODERN COLLEGE OF PROFESSIONAL STUDIES MOHAN NAGAR, GHAZIABAD
Under supervision of: Submitted by: Ms. Bhawna (Faculty) Vishal Kr. Rajput Submitted to: S/o Sh. Ompal Singh Mr. Gulshan Gambhir (H.O.D.) Univ.roll.no - 9951614
PREFACE
Research work is management parlance is extremely important for a given close view of the relatives of the real life business issues. For any management student who is striving to perform outstandingly, it is of paramount importance that apart from theoretical knowledge the most also gain some practical knowledge. Survey report deals specially with providing an opportunity to management students to have some exposure in real business world. My study topic deals with analyzing the workers satisfaction about payroll system. .
Payroll regarded as one of the major achievement of the organization. The main objective of dissertation and project i.e. familiarization with the necessary theoretical input and to gain sufficient practical exposure to establish a distant linkage between the conceptual knowledge acquired at the institute and practicing these concepts.As mba degree require equal attention practical as well as theoretical aspect of the business, various problems are to be death within these courses, that is why research program are to given deep as well as through knowledge of the subjects.
I have attempted to live up these requisites while preparing this project. It is a part of professional courses. With the help of project we can able to understand the deep knowledge about the specific topics assign to us.
During my project work I observed some of the aspects of magnum paper ventures ltd and gathered all the necessary information regarding paper industries. . It is hoped that this report meets the given expectations and various requirements of the research.
ACKNOWLEDGEMENT
I express my utmost gratitude and in debt ness to all who have contributed in some way or the other and been linked with the project from day one.
From the core of my heart. I express my sincere thanks to ( Mr.S.P
CHATRURVEDI ,(H R MANAGER) MAGNUM VENTURES LTD. GHAZIABAD, for encouragement and guidance.
I would also like to thanks to MRS. SHWETA GARG (Lecturer) for her ready assistance, interest and valuable suggestions.
I am extremely grateful to my parents, the respondents and all my friends for their unconditional support and ready assistance.
STUDENT DECLARATION
I here declare that the project report title “Workers Satisfaction Regarding payroll system at DHAMPUR SUGAR MILLS” submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration in HR is record of bonafide research work carried out by Vishal and that no part of this report has been submitted for the award of any other diploma degree fellowship or other similar title prize. The report is based on my personal opinion here cannot be referred for official or legal purpose.
VISHAL
Executive Summary
Management ideas without any action based on them mean nothing. That is why practical experience is vital for any management studies. Theoretical studies in the class room are not sufficient to understand the functioning climate and the real problems coming in the way of management. So, practical exposures are indispensable to such courses. Thus, practical experience acts as a supplement to the classroom studies.
This report deals with “Employees Satisfaction regarding payroll system at Magnum ventures ltd.
.
Indian sugar industry, second largest agro-based processing industry afterthecotton textiles industry in country, has a lion's share in accelerating industrialization rocess and bringing socio-economic changes in under developed rural areas. Sugar ndustry covers around 7.5% of total rural population and provides employment to 5 lakh ural people. About 4.5 crore farmers are
engaged in sugarcane cultivation in Inda. Sugar ills (cooperative, private, and public) have been instrumental in initiating a number of ntrepreneurial activities in rural India. Present paper is an attempt as to review progress f sugar industry in India, understand it's problems and challenges in context of ongoing beralization process. Indian sugar industry can be a global leader provided it comes out f the vicious cycle of shortage and surplus of sugarcane, lower sugarcane yield, lower sgar recovery, ever increasing production costs and mounting losses. It needs quality anagement at all levels of activity to enhance productivity and production. Attention is equired on cost minimization and undertaking by product processing activities.
Indian sugar industry contributes 15% of global sugar production. While its share n global sugar consumption is around 13.4%. Sugar exports from India had shown rarkable growth during 1998-99 to 2002-03, i.e. from 10000 MTs to 1410000 MTs. owever, exports of sugar declined substantially during 2003-04 by 78.72% and 93.33% uring 2004-05 over their respective previous years due to decreased sugar production nd uncompetitive sugar prices (Table 5). Whenever there is lower production of sugar in he country, sugar is imported to meet domestic demand. Sugar imports during 1998-99 o 2003-04 had mixed growth trend. Domestic
consumption of sugar in India had slight luctations during 1998-99 to 2003-04.
TABLE OF CONTENTS
CHAPTER 1:
PAGE NO.
1. INTRODUCTION OF THE SUBJECT 10-45
1.1 INTRODUCTION TO THEORETICAL VIEW 1.2 REVIEW OF LITERATURE CHAPTER 2: 2. INTRODUCTION TO ORGANIZATION 44-56 2.1 COMPANY PROFILE 2.2 HISTORY 2.3 RECENT ACHIEVEMENTS 2.4 PRODUCT RANGE 2.5 CURRENT STATUS 2.6 FUTURE SCENARIO CHAPTR 3:
3.1 SCOPE OF THE STUDY
CHAPTER 4:
4. RESEARCH METEHDOLOGY 58-61 4.1 RESEARCH DESIGN
4.2 DATA COLLECTION METHOD 4.3 SAMPLE DESIGN
4.4 DATA PROCESSING
CHAPTER 5: PAGE NO. 5. DATA ANANLYSIS AND INTERPRETATION 62-70
CHAPTER 6:
6. FINDING AND CONCLUSION 70-73 6.1 FINDING 6.2 LIMITATION CHAPTER 7: 7. SUGGESTIONS 74-76 CHAPTER 8: 8. CONCLUSION 77-77 BIBLOGRAPHY 78-79 ANNEXURE 80-87
1.1 INTRODUCTION OF THE SUBJECT
Payroll system in the organization
Definition of payroll
Wages and salary administration affect levels of employee commitment to the organization. Every employee joins with organization because they wants to money in the form of salary or wages (pay). Pay affects the way people work-how much and how well. A large part of compensation that people receive from work is monetary. Many employees’ individuals feel that they should get more of it for what they do. Wages salaries and many employee benefits and services are form of compensation that people receive from work is monetary. Many employees individuals feel that should get more of it for what they do. Wages salaries and many employee benefits and services are from of compensation.
According to D.S.Beach
Wages & salaries administration refers to the establishing and implement of sound policies and practices of employee compensation. It includes such areas as job evaluation. Surveys of wages & salaries, analysis of relevant organizational problems, development and maintenance of wage structure, establishing rules for administrating wages, wage payment incentives, profits sharing, wage changes and adjustments, supplementary payments, control of compensation costs & other related items.
Thus, wages & salaries administration aims to establish and maintain an equitable wage and salary structure & an equitable labor cost structure.
A should plan of wage & salary administration seeks to achieve the following
objective:-1. To establishing a fair and equitable compensation offering similar pay for similar work.
2. To attract competent and qualified personnel. 3. To improve motivation and moral of employees. 4. To improve union management relations.
5. To minimize the chance of favoritism while assigning the wage rate.
Purpose
1. To recruit persons for a firm. 2. To control payroll costs.
3. To satisfy people, to reduce the incidence of quitting, grievance and factions over pay.
4. To motivate people to perform better.
TIME OFFICE:
It is very important feature of human resource development of any organization as it keeps the details of each and every employee in terms of appointment salary attendance, leaves, overtime, bonus,
appraisal etc. these issues are very important for employee because their payment of salary, promotion is dependent on their performance which is continuously looked by the time office.
Category of employees
Permanent
These employees have jobs in permanent basis. They are required to work on off season.
Seasonal
The employees work only on seasonal basis. In sugar industry the season is from November to March. Retaining allowances is a must on basis of grade in the organization.
Temporary
These employees have jobs in temporary basis they works when the organization required.
Substitute
These are work for seasonal basis. Company can take substitute only for unskilled labor and for these labor 33% presents are compulsory.
Trainee
These are the people who are selected by the company through campus selection & interviews and after the selection company gave training to those people for a particular time period.
Apprentice
These are the people who are the selected by the government from different institute
These are work for contract basis.
The time office is required to do the following task:
-1. After receiving appointment letter entry is done on form no. 12.
2. Preparing personal file of each employee.
3. Provident fund department is separate in the company which is run by trust whereas in some companies it is the duty of it off.
4. Form 16 under factory act to be filled by employee.
5. Attendance is to be taken form 12. Today punching machine system is in use from this year only and all employees have identification card.
LEAVE
Leave sanction according Category of employees in
this organization.
1.
Permanent
Supervisory
labour
8 medical
leaves 10 medical
leaves
7 casual leaves 6 casual
leaves
30 earnleaves 15 earn
leaves
1.
½ medical leave ½ casual leave1 earns leave if work in 20 days in a month by worker.
2.
Temporary
-
3.
(Only for unskilled worker)
Work for seasonally depend upon nature of work.33% attendance count necessary some time substitute work 30days+12days over time.
4.
Trainee/apprentice
In a month
1 medical L 1 casual L
5.
Casual labor/contractual labor
RETAIN EARNINGS FOR SEASONAL
WORKERS
1. unskilled worker has 20%
2. Semiskilled worker has 30%
4. Clerk 50%
5. Supervisor B, A has 50%
Payroll is administered on monthly 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. which are provident fund (12%) of the salary, taxes and other deductions
Deductions such as tax and loan/advances taken by the employee from organizations are deducted only where applicable. Dearness Allowance and House rent allowance is provided at a fixed rate stated by the employment law. Provident fund is deducted from the gross salary of employee on the monthly basis as per the employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee.
Annual payroll
Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.
Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some organizations go for performance based incentives.
Payroll management
Payroll management is divided in to two parts
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.
Compensation 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
Types of compensation
1.
Direct compensation
Components of direct compensation
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 employees to motivate them .
Leave
Travel
Allowance
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.
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 month’s 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.
Components of indirect compensation
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, overtime pay, etc.
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.
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 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
Incentive Plans
Bonuses
Bonuses are given to employees on a pre established goal or criteria. The organizations set policies regarding the bonuses. Usually bonuses are provided during the festive season.
Merit
Raises
Merit raises are given on the basis of predetermined policies. The employees are given raise on the basis of their performance. The performance standards are set by the organizations much in advance.
Standard
Hour
Pay
Standard hour plan provides incentives to employees based on the time saved by them during the job course. Employees’ productivity and quality is evaluated with respect to the set standards.
Maturity
Curves
Maturity curve incentive plan considers the experience and performance of an employee for giving out the incentives. It is practiced in all the industries. Experience is always given a weight-age as experienced people can produce better quality results.
Gain
Sharing
Gain sharing incentive plans undertake those employees who give outstanding performances and provide for cost saving measures. Organizations believe in sharing the profits with the employees who are responsible for producing those results.
Profit
Sharing
Profit sharing incentive plans are practiced in retail and FMCG sectors. Other sectors too implement the plan based on
organizational policies. It refers to giving out the share of profits the organization earned to all the employees. Indirectly all the organizations follow the plan by giving out the dividends.
BONUS
Eligibility for bonus
Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Disqualification for bonus
Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for -- (a) Fraud or
(b) Riotous or violent behavior while on the premises of the establishment; or
(c) Theft, misappropriation or sabotage of any property of the establishment.
Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effecting relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted.]
Payment of maximum bonus
Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the
accounting year subject to a maximum of twenty per cent, of such salary or wage.
In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.]
Proportionate reduction in bonus in certain cases
Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33
Computation of number of working days
For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which—
GRATUITY
Payment of gratuity
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,
-(a) On his superannuation, or
(b) On his retirement or resignation, or
(c) On his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with
the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.:
Provided further that in the case of [an employee who is employed in a seasonal establishment and who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of seven days wages for each season.
The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.
For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. Nothing in this section shall affect the right
of an employee to receive better terms of gratuity under any award or agreement or contract with the employer..
Recovery of gratuity
If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify,] from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :
Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.
Features of Important Indian Labor Laws
relevant for Industrial Sector
Employees’ Provident Fund Act, 1952
Benefits available to the workers include the provident fund, employees deposit linked insurance and the pension to the workers and their families
Applicable to 180 industries/classes of establishments employing 20 or more workers
Wage ceiling for coverage is Rs. 6,500 per month 24.53 million workers are covered under the Act
These are administered by the Employees Provident Fund Organisation under the overall supervision and direction of the Central Board of Trustees and Committees Central Provident Fund Commissioner (CPFC) is the Chief Executive Officer of the Organisation
Workmen’s Compensation Act, 1923
Provides for compensation to workmen or their survivors
in cases of industrial accidents and occupational diseases, resulting in disablement or death
Compensation in case of death ranges from Rs. 50,000 to Rs. 4.56 lakh and in the case of permanent total disablement from Rs. 60,000 to Rs. 5.48 lakh.
Dock Workers (Safety, Health & Welfare) Act, 1986
Contains provisions for the health, safety and welfare of workers working in ports/docks
Administered by Director General Factory Advice Service and Labour Institutes, Directorate General FASLI as the Chief Inspector there are inspectorates of dock safety at 10 major ports in India viz. Calcutta, Mumbai, Chennai, Visakhapatnam, Paradip, Kindler, Mormugao, Tuticorin, Cochin and New Mangalore
Inspectorate at Jawaharlal Nehru Port is being made operational
Overall emphasis in the activities of the inspectorates is to contain the accident rates and the number of accidents at the ports
Payment of Wages Act, 1936
The Payment of Wages Act was enacted during the British Rule in 1936 on the recommendations of the Royal Commission on Labour. The Act regulates the payment of wages to workers and ensures that they are disbursed by the employers within the stipulated time frame and without any unauthorized deductions.
The Act lays down that the wage period exceeding one month should not be fixed and payment of wages must be made before the entry of specific day after the last day of the wage period. The specific day is the seventh day of a month where the number of workers is less than 1000 and tenth day in case the number of workers is one thousand or more. All wages must be paid in current legal tender. The wages can also be paid by cheque or credited to the bank account of the employed persons with the written authorization of the letter. The beneficiary under the Act are, however those who are in receipt of wages below the Rs 1600/- per month.
Enforcement of the Payment of Wages Act is primarily the responsibility of the State Governments. Inspectors are appointed under the provisions of the Act who conduct regular inspections to ensure that the employers pay the wages timely and correctly. The defaulting employers are advised to pay full wages in time. In case of non-adherence to the advice, there are provisions of prosecutions also. The Central Government is responsible to enforce the Act only in mines, railways, oilfields and air transport service by virtue of Section 24 of the Act.
Section 15 of the Act provides that the wages of an employed person shall be paid to him without any deductions except those authorized under the Act. Deductions permissible from wages inter-alia relates to unauthorized absence from duty, deductions for house accommodations, recovery of advances and statutory dues etc. It also prevents the employers from making any delay in the payment of wages. The employees can apply to the authorities prescribed under the Act for redressal, if deduction is made or there is delay in payment of wages. The authority after giving opportunity may direct the employers to refund the wages with compensation.
REVIEW OF RELATED LITERATURE
Importance of Employee Satisfaction
According to Marc Drizin, an employee loyalty specialist,
“Employees are assets with feet. They’re the only resource companies have that make a conscious decision to return the next day” (Modic, 2005).
The effects employee satisfaction has on an organization’s business are numerous.Some of the most relevant and profitable effects are described below.
Studies show that businesses that excel in employee satisfaction issues reduce turnover by 50% from the norm, increase customer satisfaction to an average of 95%, lower labor cost by 12% and lift pretax margins by an average of 4% (Carpitella, 2003). Value is created by satisfied, loyal and productive employees.
Employees who feel a sense of teamwork and common purpose, a strong commitment to communication, and managerial
empowerment are most able, and willing, to deliver the results that customers expect (“Employee Satisfaction”,2005)
Payment by result system
Henk Thierry (2000)
"Payment by results" (PBR) vary considerablement selon les pays, aussi bien en Europe de l'ouest que de Test. Les donnees disponibles laissent entendre que les pays de Test appliquent le PBR a la plupart de leurs travailleurs. Parmi les pays de l'ouest, l'lrlande et le Royaume Uni se placent a un niveau eleve, tandis que les Pays-Bas sont en queue de liste. II est surprenant que des bilans des recherches sur l'efficacite comparee du PBR et des systemés de salaire fixe ne soient pas disponibles. Dans notre travail, les donnees sont dans la mesure du possible presentees par systemés distincts a partir desquels on discute les recherches portant sur l'efficacite relative du PBR. Le "merit rating" est decevant. Le "Scanlon Plan" donne des résultats encourageants. Toutefois, la plupart des donnees interdis-ent d'inferer avec certitude sur les relations causales. On insiste sur quelques-uns des domaines que la recherche se doit d'explorer et sur les conditions favorisant I'elaboration et le choix de strategies pertinentes de remunerationLUMP-SUM BONUS SATISFACTION
MICHAEL C. STURMAN (1979) There are both practical and
theoretical reasons to measure lump-sum bonus satisfaction. The practical need for such a measure stems from its increased use as a component in modern compensation practices. Based on the means of administering and allocating lump-sum bonuses, a theoretical case can be built suggesting that lump-sum bonus satisfaction constitutes a separate component of pay satisfaction fitting into the Pay Satisfaction Questionaire's (PSQ) theoretical framework. We develop 4 questions that complement the PSQ, and use a series of techniques to test the convergent and discriminant validity of the measure. Empirical evidence shows that bonus-related items are more bonus-related to the lump-sum bonus satisfaction measure than other PSQ dimensions. We also demonstrate that the dimension of lump-sum bonus satisfaction has a substantive relationship with attitudinal variables beyond that provided by pay level variables and the PSQ. The development of this measure should foster greater accuracy when assessing pay satisfaction levels and the effects of lump-sum bonus pay policies.
Margaret L. Williams (1988)
Compensation research distinguishes between satisfaction with pay level and the system that determines and delivers pay, but has neglected to make a similar distinction with respect to benefits. We (1) develop a measure of the benefit system satisfaction construct, (2) examine the discriminant validity of benefit system satisfaction, and (3) examine aspects of procedural and distributive justice and transaction costs as they relate to benefit satisfaction. Confirmatory factor analysis of a comprehensive pay satisfaction measure supported a separate benefit system satisfaction dimension. Structural equation models supported common and unique antecedents of benefit system and benefit level satisfaction, and supported their relationships with global job satisfaction.THE IMPACT OF FLEXIBLE BENEFITS ON
EMPLOYEE SATISFACTION
ALISON E. BARBER (1978)
This study examines the attitudes of 110 employees of a financial service organization before and after the introduction of a flexible benefit plan. A large, statistically significant increase in benefit satisfaction was observed following implementation, as was a smaller significant increase in overall satisfaction. Employee understanding of the benefit package also increased significantly. No significant relationships were foundbetween demographic characteristics and responses to the flexible plan. Potential confounds due to the complexity of the intervention are discussed. Future research is called for to examine the processes through which flexible benefits impact worker reactions and to examine the impact of flexible benefits on behavioral responses such as attraction and retention
The Role of Organizational Justice in Pay and
Employee Benefit Satisfaction, and its Effects on
Work Attitudes
Michel Tremblay (1985)
The objective of our study is to providea complementary approach with regard to organizational justice in the domain of compensation. It presents research undertaken on a sample of 285 employees in three different Canadian organizations. The results reveal that employees distinguish clearly between pay satisfaction and benefit satisfaction, and that distributive justice perceptions are better predictors of pay satisfaction than procedural justice perceptions. This result is reversed for employee benefit satisfaction: Procedural justice perceptions are better predictors than distributive justice perceptions. Lastly, the results show that distributive justice perceptions with regard to pay play a more important role than procedural justice in job satisfaction and satisfaction with the organization.
PAY-FOR-PERFORMANCE PERCEPTIONS AND
PAY SATISFACTION
ROBERT L. HENEMAN(1974)
A study was conducted with 104 hospital employees to assess the relationship between pay-for-performance perceptions and pay satisfaction. Unlike previous research examining this relationship, a multi-item measure of pay-for-performance perceptions and a multidimensional measure of pay satisfaction were used. As hypothesized, the results indicated a positive relationship between pay-for-performance perceptions and pay-raise satisfaction, pay-level satisfaction, and overall pay satisfaction even after the effects of salary level, salary increases, performance ratings, job tenure, job satisfaction, and promotions were controlled. The importance of gathering perceptual data on characteristics of the pay system believed to have differential relationships with the subdimensions of pay satisfaction are discussed2. INTRODUCTION OF THE
COMPANY
The Dhampur Group with a combined capacity of 39500 TCD is spearheaded by its dynamic Chairman, Mr.V.K.Goel. His visionary innovativeness and emphasis on continuous R&D have made the company a technological leader in sugarcane processing and green energy solutions.
Starting from 300 TCD in 1933 the Dhampur Group has recorded an impressive performance taking its crushing capacity of sugarcane to 39500 TCD, with power co-generation capacity of
125 MW and alcochem capacity of 140 KLPD. Through its
successful pioneering efforts, the Dhampur Group directed the industry’s development by introducing new technologies like Fibrizors, Pressure Feeders, Fiber based single tandem, Pressure Evaporation System with Falling Film Type Evaporator Bodies, Vertical Continuous Pans etc. These innovations became the mainstay of sugar technology in India.
Dhampur is one of the most integrated sugarcane processing companies in India. In 2006-07, Dhampur's sugarcane co-generation capacity was one of the largest in the country and it has perhaps the highest ethanol manufacturing capacity relative to it’s cane crushing capacity, in the country. It is also the first and the largest producer of refined sulphurless sugar in the country.
Sugarcane processing units wield a tremendous impact on the area of their location. We continue to play our role with absolute commitment and watch with fascination and pride as even the most backward areas where our units are located, slowly transform into a beehive of activity, touching the lives of thousands of people, now a part of the ever increasing Dhampur family.
2.1 COMPANY PROFILE
Dhampur Sugar Mills Ltd - Company Profile
Company Profile: Dhampur Sugar Mills Ltd Ticker: 500119
Exchanges BOM
2008 Sales 6,678,700,000 Major Industry Food & Beverage Sub Industry Sugar Producers Country INDIA
Business description
Dhampur Sugar Mills Ltd. The Group's principal activity is to produce and sell sugar, chemicals, ethanol and power in India. The Group operates in three segments Sugar, Chemicals and Others. Sugar segment manufactures Double Refined White Sulphurless Sugar, Plantation White Sugar and Raw Sugar. Chemical segment produces Acetaldehyde, Acetic Acid and Acetic Anhydride and Alcohol. It also produces eco friendly energy using bagasses as the fuel. DSM Hitech Products Ltd., a wholly owned subsidiary merged with in September 2007 and in 06-Jun--2007, Kashipur Sugar Mills Limited ceased to be a subsidiary
Mission & Vision
Dhampur stands tall with the collective confidence that our farmers, our workers, our vendors and our stakeholders have pledged with us. Their sense of belonging, their hopes and expectations motivate us to perform better each time. Preserving their trust is our corporate mantra.
At Dhampur we have striven to realize a corporate environment of collaborative effort and have worked towards continuous
improvement in every sphere of our activity. In our quest for excellence we have given special consideration to our social obligations, whether it is caring for the rural hinterland or the environment we live in. A significant and endearing feat for the Group is that some of its employees have been a part of the Dhampur family for two to three generations.
Projections of the sugarcane based Industry in India are exceptionally promising and Dhampur is totally geared up to think beyond the cube:
To provide energy alternatives to an energy-starved country through co-generation and ethanol.
To value add on our product portfolio
To maximize the potential of the agro industry in India. To continuously bring down the cost of conversion.
To encourage creativity and resourcefulness, and focus on continuous R&D.
To optimize the value of stakeholder investments with a continuous improvement in financial performance.
To diversify and protect the bottom-line during industry downturn.
To attain the highest level of accountability, corporate governance and shareholder value.
In a country where agriculture is the predominant activity, sugarcane processing units wield a tremendous impact on the area of their location. We continue to play our role with absolute commitment and watch with fascination and pride as even the most backward areas where our units are located, slowly transform into a beehive of activity, touching the lives of thousands of people, now a part of the ever increasing Dhampur family.
Area of Study
I covered area in Dhampur sugar mills for collection data
moreover. I had visited various departments head to obtain the stratified data
2.2 HISTORY OF THE COMPANY
The Dhampur Group began its operations at Dhampur, Uttar Pradesh in 1933 with a crushing capacity of 300 TCD. The current capacity of Dhampur Group is 39,500 TCD. Its products include Power, Ethanol, Chemicals, Refined Sugar and Plantation White Sugar.
Leadership begins with a vision
Lala Ram Narain ji [1880 – 1943], founder of the Dhampur Group, took on the task of supporting his entire family at a very young age and shouldered his responsibilities with fortitude and confidence. During this period he worked with a forest contractor but the craving to press forward and accomplish, burnt deep within his heart. He soon spotted an opportunity in supply of wooden sleepers, for laying new railway tracks and boldly struck out on his own. His determination defied logistics and laid the foundations of the Dhampur Group.
From such modest beginnings, he hand-crafted the destiny of the corporate house that today, directly and indirectly, provides employment and livelihood to a large number of individuals and families of the rural India.
In the early 1930’s, while the strategists debated over choice of role models on which to shape the Indian economy, Lala Ram Narain ji anticipated the need for industrialization. The outcome of
his foresight was investment in two sugar mills – one at Dhampur and the other as a 50% partner, at Bareilly, in Uttar Pradesh.
The Dhampur Sugar Mill was commissioned in 1933.
Shri Murli Manohar ji [1916 – 1964], eldest son of Lala Ram Narain ji took up the baton at an early age to carry forward the vision and legacy of his father. Even in face of a youth spent in comparatively difficult circumstances, the indomitable will he inherited from his father manifested itself in 1947 when the Indian Sugar Industry was passing through a challenging phase.
He resisted efforts to divest the Dhampur unit and took over the Managing Agency of the factory agreeing to pay a fixed dividend to his partners. He accomplished this task with great élan and successfully turned around the fortunes of the Dhampur factory. He passed away at the young age of 48 but the path for the future generations had already been etched.
2.3 RECENT ACHIEVEMENT’S
Balrampur chini acquires Dhampur sugar unit
Mumbai: Balrampur Chini Mills is acquiring an integrated sugar
unit of Dhampur Sugar Mills at Rauzagaon in Uttar Pradesh in an all-cash deal for Rs182 crore. The Rauzagaon unit of Dhampur
Sugar has a crushing capacity of 7,500 tonnes crushed per day (TCD) and 12 mw cogen power unit. Balrampur Chini has a crushing capacity of 29,000 tcd at its three units at Tulispur, Balrampur and Babhnan in Uttar Pradesh. There are plans for scaling up capacity to 47,000 tcd by the 2006-07 crushing season.
Dhampur Sugar Mills is planning to reduce its high-cost debt, through the sale and save huge amounts by way of interest cost. The interest outgo for the entire group is of the order of Rs40 crore per annum. Through this sale the company's balance will look
better with the inflow of Rs182 crore from the sell-off. Dhampur is also planning to expand its power production. Dhampur has
become almost a zero-debt company, will announce its borrowing and expansion plans in the next two weeks.
Reacting to the development, Balrampur Chini scrip closed higher at Rs88.70 against its previous close of Rs84.30, down 4.40 per cent on the BSE. Dhampur Sugar Mills closed at Rs157.70 up 15.15 per cent.
The Dhampur Sugar Mills, the largest sugar company in the country (cap: 350,000 tpa) intends to sell two of its sugar units and a paper mill in order to reduce its debt obligations. It expects Rs 80-100 cr from the sale and will use the funds to pay off debts worth Rs 240 cr. The company has put its expansion plans on hold and is planning to restructure its financials, aiming at a debt equity ratio of 1:1 from 1:1.5 at present. DSML is also scouting for a joint venture partner for its co-generation power unit.
Dhampur Launches Sulphurless Sugar
Chandigarh,May,24
Dhampur Sugar Mills, one of the largest producers of sugar in India, today announced the launch of “Dhampure” sugar which is double refined and is the only sugar in India where no sulphur is used in the manufacturing process which makes it free from all toxins.
2.4 Brand Value
BRAND : DHAMPURE
With the belief that the Indian consumer today is as quality and health conscious as any other consumer today the world over, Dhampur Sugar Mills made an initiative to produce a sugar comparable to the high standards of the western countries, in India. Dhampur embarked on the project in 1996, under the aegis of the
Sugar Technology Mission to make sugar that would be sparkling white, pure and healthier. Dhampur perfected the technique and the result was India's first double refined sulphurless sugar sold under it’s brand Dhampure.
Dhampure is a better sugar simply because its processing continues long after that of ordinary sugar has stopped.
The secret behind Dhampure's purity is the unique Defeco Remelt Process, in which the sugar after it has crystallized is melted all over again and all the impurities are removed without the use of sulphur.
Since no sulphur is used in the manufacturing of Dhampure sugar, it meets even the strict standards of the European Union on sulphur content.
The double refined Dhampure sugar has no impurities, so its crystals have natural translucent white colour and don't require bleaching with sulphur-dioxide.
Dhampure is packed under a controlled environment, untouched by hand, assuring impeccable hygiene.
2.5 CURRENT STATUS OF THE COMPANY
Dhampur Sugar Mills Limited is situated on the State highway near the Dhampur Railway Station. This sugar complex is the most integrated of the facilities operated by the Dhampur Group with production capacities of 15000 TCD for Plantation White Sugar, 170 KLPD for Ethanol and other Ethanol based Chemicals and a Co-generation capacity of 60 MW – the largest in India in a single unit. Dhampur is the first in the world to implement 105 kg.cm2 boiler and turbine and has perhaps the most efficient cogeneration system in the world. It has also been the most consistent and profitable enterprise and has contributed to the steady growth of the Group. It epitomizes the synergy in the diversification program of Dhampur.
During the 2007-08 season, the unit was operational for 127 days and crushed 143.48 lac quintals of sugarcane, thereby witnessing a daily increase of 2.21 % over the previous season. The Unit also showed an average increase of 0.26 in recovery.
The Dhampur unit has undertaken innumerable revolutionary changes in terms of technologies, manufacturing processes and practices and various allied systems. Dhampur has introduced from this unit, advanced machinery concepts like Fibrizors, 5 and 8 Roller Mills, Toothed Roll Pressure Feeder and Grooved Roll Pressure Feeder. The unit also deploys Hydraulic Drives that are used along with the Rollers. This results in substantial saving of power. The unit targets to reduce power and steam consumption while increasing it’s distillery and chemical capacity.
Along with sugar produced in large quantities, the unit also manufactures high value industrial chemicals from molasses. Sugarcane bagasse is used for producing power for internal consumption and for sale to the State Electricity Board.
The new cogeneration plant uses boilers at 105 kg/cm2 pressure and extraction condensing turbines. For the first time by any sugar company in India and perhaps the world, Dhampur is using boilers at 105 kg/cm2 for steam generation with bagasse as fuel. This arrangement has resulted in very high energy efficiency, leading to reduction in the consumption of steam per MW of power generation.
Sports and social activities are being keenly promoted here. This facility has, perhaps, one of the best sport complexes available in any sugar mill in India, with emphasis on Squash. A development program in sports, lead by a team of able instructors, channelize the energies of our employees and their children, into a healthy and productive outlet.
The sports complex at Dhampur unit features an air-conditioned squash court, indoor badminton courts, an indoor swimming pool, table tennis facilities, a gymnasium and a volleyball court.
3. OBJECTIVE OF THE STUDY
a) Employees satisfaction regarding the salary, wages and other payments.
b) To ascertain the compensation and wages provided by DSM group.
c) To find out the policy of compensation.
d) To study the awareness of the employees regarding incentive plans and compensation policies.
3.1 SCOPE OF THE STUDY
This report will present a view or the “compensation and the method of wage”. Payment the various methods adopted by Dhampur sugar mill employee satisfaction the present scenario of Dhampur sugar mill and “the power of integration “. The current growing trends and present status adopted by DSM group.
4. RESEARCH
METHODOLOGY
Research methodology is systematically solving the research problem. It may be understand as science of studying how research is done scientifically. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them.
1)
TYPE OF RESEARCH
This is descriptive research .as this research help in knowing about particular item or a group of item in different describes the states as it exist as it present.
2)
SCOPE OF THE STUDY
This report will present a view or the “compensation and the method of wage”. Payment the various methods adopted by Dhampur sugar mill employee satisfaction the present scenario of Dhampur sugar mill and “the power of integration “. The current growing trends and present status adopted by DSM group.
3)
SAMPLE SIZE
The sample size under taken by me to conduct the survey was 100 employees.
4) DATA COLLECTION & SOURCE
The data collected in this research is first hand so it is primary data .It is collected directly from the respondent through interviews questionnaire.
Which was conducted in the DSM moreover secondary data obtained from the past records books and various acts (bonus, PF, gratuity and salary acts etc) website www. Dhampur .com.
5) DATA COLLECTION METHOD
The data is collected by primary and secondary means primary through questionnaire based and secondary data through its past records and bulletins various acts & www.dhampur.com . The data collected by me is primary in nature i.e the first Hand
data as my main focus concerned there because it’s a better scope of getting required information so questionnaire method interview and observation method is adopted as also.
The secondary data has been obtained from past records bulletins and periodicals and sites of DSM group.
6)
DATA COLLECTION INSTRUMENT
Primary and secondary
7)
SAMPLE TECHNIQUES
Random
8)
DATA ANALYSIS TECHNIQUES
Analysis of data is done through graphical method.
5. DATA ANALYZES
&
INTERPRETATION
1) Preferable feature by workers or employees (%)
Features employees (%) Salary package 50
Retain earnings 30 Compensation 12 Incentive plans 08
Analysis 1: - The data analysis about this survey mostly employees preferred salary packages with more benefits e.g. bonus, retain earning, compensation etc. In this organisation mostly employees preferred basic salary packages improved 30%, and 20% prefer retain earnings,
22% employees prefers compensation, 19 % prefer bonus and only 9% employees preferred scheme of the organisation.
2) Knowing (%) of Dhampure brand
2) Employees participation (%) in decision making
Involvement Employees participation (%) More involvement 18
Normal involvement 32 less involvement 28 No involvement 22 18 32 28 22 0 5 10 15 20 25 30 35 M or e in vo lv em en t No rm al in vo lv em en t le ss in vo lv em en t No in vo lv em en t S eries 1 S eries 2
Analysis2:-
The above results reveal that 32% of the employees have normal involvement in decision making of the organisation. 28% of the employees have less involvement in decision making.Thus this means that different employees have different point of view.
3) Employees satisfaction towards salary package Satisfaction level Employees Satisfaction (%) Highly Satisfied 34 Satisfied 29 Average 25 Less Satisfied 12 68
Analysis3:-
The above results reveal that 34% of the employees are highly satisfied. 29% of the employees are satisfied 25% employees are average and 12% employees are less satisfied with the salary package of the organisation.4) Employees awareness (%) about compensation package Level of awareness Employees awareness% Aware 42 Partial 40 Not aware 18 42 40 18 0 10 20 30 40 50 60 70 A w ar e P ar tia l N ot a w ar e 69
Analysis4:-
The above result reveals that 42% employees are aware about the compensation package 40% employees are partial and 18% employees are not aware about the compensationpackage of the organisation.
5) Is Company provide fringe benefits
Employees(%) Yes 80 No 20 P ar tia l 20 80 0 20 40 60 80 Yes No
Analysis5:-
The observe result reveals that 80% employees feels that company provided fringe benefits and 20% employees feels that company not provided fringe benefits to them.Likert Scaling
Are you satisfied with the Salary package that you have got? Satisfaction level Employee Satisfaction (%) Highly Satisfied 25 Satisfied 23 Average 27 Less Satisfied 14
Employees satisfaction
34 29 25 14 Highly satisfied Satisfied Average Less satisfied P ar tia lThe above result revels that 34% of employees are average satisfied with the salary package. This means that employees satisfaction level is average. 29% of employees are highly satisfied with the salary package.
34 29 25 12
4 3 2 1 Highly Satisfied average satisfied less satisfied Satisfied 100*4=400 Highly satisfied 100*3=300 Satisfied 100*2=200 average satisfied 100*1=100 less satisfied 25*4 +23*3 +27*2 +14*1 = 237
Here the score is 237 that lies between 200 & 300, So the employees are satisfied with the salary package of the organisation
6. FINDINGS
&
6.1 FINDINGS
1. The Dhampur group Starting from 300 TCD in 1933 the
Dhampur Group has recorded an impressive performance taking its crushing capacity of sugarcane to 39500 TCD.
2. The Dhampur group power co-generation capacity of 125 MW
of power from renewable resources which do not contribute to greenhouse gasses.
3. The Dhampur Group directed the industry’s development by
introducing new technologies like Fibroses, Pressure Feeders, Fiber based single tandem, Pressure Evaporation System with Falling Film Type Evaporator Bodies, Vertical Continuous Pans etc. These innovations became the mainstay of sugar technology in India.
4. Dhampur is one of the most integrated sugarcane processing companies in India.
5. Dhampur's sugarcane co-generation capacity was one of the largest in the country and it has perhaps the highest ethanol
manufacturing capacity relative to it’s cane crushing capacity, in the country.
6. It is also the first and largest producers of refined and sulphur less sugar in the country.
7. It is the number one sugar industry in India.
8. Dhampur encourages use of renewable fuels, which not only save national resources but also eco–friendly
6.2 LIMITATION
1. Actually there is no limitation in sugar industry because in the production of sugar by product molasses , bagasse , and ethanol are sold at a good price there is no waste product. 2. The sugar mills is in loss till last year because the rate of
sugar-cane is fixed by state government and rate of sugar is also fixed by government so government makes farmers happy by increasing the rate of sugar-cane every year and sugar rate is constant so mills come in loss and salary of
workers also fixed by government then factory have to obey the rules and they comes under loss.
EASY METHOD
Payroll system is one which is easy to understand and simple to calculate. An average worker must be able to know the incentives offered and he should be able to calculate his own earnings. The linkage between pay and performance should be
clear.
RESULT BASED WAGES
Performance appraisal should be done on the organization by which the organization able to
Know the performance of the employees and according to their performance wages salary
And incentives should be given.
HEALTHY ENVIRONMENT
Healthy environment should be provide to workers by which employees feels better and they will contribute more to dhampur sugar mills.
WORKERS PARTICIPATION IN THE
ORGANISATION
Involvement of employees will ensure that they fully understand the objective and mechanism of the plan.
WORKERS PARTICIPATION IN THE PROFIT
Worker must be provided a share in the profit also addition to their wages this create a sense of belongingness among workers and the will contribute maximum to DSM.
IMPROOVE THE QUALITY OF SUGAR
The workers will bother more about the number of unit produced rather than their quality. Their main target to produce 14 lakhs packets of sugar in a season they are not very much concerned about the quality. This results in the production of sub standard goods unless other wise more supervisors are appointed to keep watch on quality.
ECONOMY
The policy of maximum output at the minimum cost should be adopted this method should be economical and competitive.
TECHNOLOGY UPGRADATION
The organization should adopt the new technology to the market.
8. CONCLUSION
Wage and salary administration affect level of employee commitment to the organization.
A good compensation package is important to motivate the employees to increase the organizational productivity.
The most competitive compensation will help the organization to attract and sustain the best talent
. Unless incentives is provided no one will come and work for
the organization. Thus, incentive plans helps in running an organization effectively and accomplishing its goals
BIBLIOGRAPHY
Referred Websites
o http://www.dhampur.com o http://www.hrguid.com o http://www.google.com o http://findarticle.com/p/articles/mi o http://www.hewittassociates.com o http://www.globalservicesmedia.com/content/general.aspReferred Books
Ashwathappa, P. Human resource management
Joshi, roshi. Human resource management kalyani publishers ,new delhi
Kothari, C.R, Research methodology, methods & techniques, new age internati,onal ltd. Publishers, Second edition, P.no27-42
Gupta, S.P. Stastical methods and techniques, Sultan
Chand & Sons. Educational Publishers, New Delhi,P.no237-241,628-629
Jain,T.R, Statistics for MBA,V.K.(India) enterprises, New Delhi.,edition2006-07,P.no 135-137
Referred magazine
1. Sampling, Business Research, June 2005, pp 31
Referred Articles
1. Sturman, M.C., Short, J.C. (2000), "Lump-sum bonus
satisfaction: testing the construct validity of a new pay satisfaction dimension", Personnel Psychology, Vol. 53 pp.673
2. Heneman, R.L., Greenberger, D.B., Strasser, S. (1988), "The relationship between pay-for-performance perceptions and pay satisfaction", Personnel Psychology, Vol. 41 pp.745-59.
3. Aleson E. Barber (1985), “ Impect of flexible benefits on employees satisfaction Research in Personnel and Human
Resources Management, Vol. 3 pp.115-39.
4. Henk Thierry (1974), " Payment by Results Systems ", Industrial
Relations, Vol. 13 pp.78-9.
5. Michel Trembley . (1973), " The Role of Organizational Justice in Pay and Employee Benefit Satisfaction, and its Effects on Work Attitudes Personnel Psychology, Vol. 26 pp.503-20.
6. Marget Williams (1961), “ Benefit System and Benefit Level Satisfaction” Wiley, New York, NY,
QUESTIONNAIRE
Workers Satisfaction
Regarding salary package, compensation,bonus etc. A case study of Dhampur sugar mills ltd
Name : _________________ S/O||D/O : ______________________ Age : ___________________________________________ Occupation : ______________I Address : ___________________________________________ ________________________________Ph.________
Salary package incentive plans Retain earnings
Compensation
2. Employees participation in the organization.
More involvement Normal involvement Less involvement No involvement
3. Are you satisfied with the salary package that you have got?
Highly satisfied Satisfied Average Less satisfied
4. Are you aware about the compensation package of the organisation?
Aware Impartial Not aware
5. Whether the company provide fringe benefits?
GRATUITY FORM
FORM-1
[SEE SUB-RULE (1) OF RULE 7] Application for gratuity by an employee To,
(Give here name or description on the establishment with full address)
Sir/Gentleman,
I beg to apply for payment of gratuity to which I am entitled under subsection (1) of section 4 of the payment of the gratuity Act. 1972, on account of my superannuation / retirement / retirement after completion of not less than five years of continuous service / total disablement due to disease with effect from the.
