1

A RESEARCH PROJECT REPORT ON

Compensation System A Comparison of G.S Auto Ltd. & SIL

Submitted by

Jasvinder jit singh

ROLLNO.90632234420 in partial fulfilment for the award of the degree of

MASTER IN BUSINESS ADMINISTRATION

RIMT- INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR ( 2009-2011 )

Acknowledgement
The Punjab University has introduced the research project for M.B.A students to get the practical hand and to introduce us the environment of industry. Therefore, I Sukeshi (university roll no. 95072238791) has undergone my project at G.S. AUTO INTERNATIONAL LTD as a part of my curriculum of Masters of Business Administration. Firstly, I would like to pay my sincere thanks to my research guide lecturer Mrs.URVASHI Who has been consent source of inspiration to me. I am highly obliged and thankful to Sardar Jasbir Singh, Chairman of the company who with his open hands welcomed me to do research. I also wish to express my deep gratitude to Mr. M.S.Mangat (Personal Manager) for providing me valuable information to make this research successful. I the end, all go to my parents who were always my true sense of inspiration ad the cause of what I am today. Moreover, thanks to all those who made this project successful.

PREFACE
The highly competitive world of business demands much more than a theoretical knowledge, due to this, a good practice oriented management course must include project work in curriculum, and this would be an essential part of Masters of Business Administration degree course. As it is a well-known fact that both, the theoretical knowledge and practical skills are being more weight age comparatively, as it quite evident from the prevailing environment. The lectures in the classroom are no doubt instrumental I understanding the fundamental concepts of management and they also facilitate the learning process but their application I real life situation remains doubtful. Therefore, in order to achieve the effective results the classroom learning needs to be effectively wedded to the realities of the practical situations. How far the concept if management are applicable in real life situations can only be judged by having a first hand experience so to develop healthy managerial and administrative skills. The potential managers to the theoretical knowledge with the real business environment and enable the management students to have a feeling of the working condition and atmosphere under which they will have to work. In the future, the research work becomes a essential and indispensable part of Masters of Business Administration course. So to know about all these I have made my research project on `Compensation`. A sincere effort has been made to being about the lucid facts and I hope that this report meets the given expectation ad various requirement of the research.

CERTIFICATE
This is to certify that jasvinder jit singh, Roll No. 90632234420 has done the Major Research Project entitled Compensation System Comparison of G.S. Auto Ltd. & SIL under my supervision for the fulfillment of the degree of Master of Business Administration. The work done by her is a sole effort & has not been submitted as or its part for any other degree.

MRS. URVASHI VASHIST Lecturer Department of Business Administration RIMT-maec Mandi Gobindgarh.

INDEX
CHAPTER NO. TITLE PAGE NO.

1.

Company Profile i)G.S. Auto ii)Shreyans Paper Mills

2. 3. 4. 5.

Compensation Introduction Review of Literature Research Methodology Data Analysis and Interpretation => Objectives of Study

6. 7.

Findings, Limitations and Recommendations Conclusion of Study (i) (ii) Bibliography Annexure

Chapter 1
(Company Profile)

Introduction
Gone are the days when it took months to travel room one place to another but today thanks to modern science ad technology, which has decreased the distance, now any one can reach anywhere in the world. Thanks to Auto companies.

In spite of mega advance I science and technology people are running short of time. Everyone is racing against time all this has led to an increase in the demand for automobiles, ranging from luxuries cars to large ad more advanced commercial vehicles. Seeing this demand and potential to grow, the Indian automobile industry has been extensively liberalized and due to this, the sales and production of automobiles have doubled, the number of manufacturing and the choice of model in the automobile market has more than double the standards of quality, customer expectations, Awareness and even dealer services have considerably improved, and surprise of surprise now. You ca get almost ay automobile off the shelf ay time. However, just manufacturing automobiles is o longer a singular achievement. The most important aspect of present time is the demand of such auto parts which are of high quality and which can pass through stringent conditions of its applications.

ORIGIN of AUTOMOBILIES
The history of automobile actually began about 4000 years ago when the first wheel was used for transportation India. Several Italians recorded designs for wind-driven cars. The first was Guido da Vigevano in 1335. I early 15 century the Portuguese arrived in China and the interaction of two led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s small steam powered engine modals were developed but it was another country before a full sized engine powered automobile was created. The automobile was a four-wheeled vehicle powered by an internal combustion engine and used primarily for the transportation of people. In the early 1800s, other inventors also experimented with this idea and the steam-powered vehicle was put into production in Europe and the US. A
th

breakthrough in developing gas-powered automobiles came in 1860, when an internal combustion engine was patented in France. However, a prototype of the twentieth century automobile was not "born" until 1885 when Germans Gottlieb Daimler (18341900) and Carl Benz (18441929) (working independently of each other) developed the forerunners of the gas engines used today. In 18911892 a French company, Pan hard et Levassor designed a frontengine, rear-wheel drive automobile. This concept remained relatively unchanged for nearly one hundred years. In 1896, the Duryea Motor Wagon Company turned out the United States' first production motor vehicle. The gas-powered cars were available for purchase that same year.. However, the first decades of the 1900s saw the U.S. auto industry take the lead, establishing Detroit, Michigan, as Motor City, U.S.A. In 1908, Ford Motor Company (established 1903) produced the first dependable, easily maintained, and widely affordable automobilethe Model T. American consumers bought 17,000 Model Ts the year they were introduced at the price of $850. The popularity of the "Tin Lizzie" (it was also nicknamed the "Flivver") was met by stepped-up production: In 1917 Ford produced 700,000 Model Ts. The innovation of the moving assembly line (1914) steadily improved production time. This resulted in lowering of manufacturing costs and the decrease of the price of the car to the consumer (in 1924 the Model T sold for just $295).

HISTORY of AUTOMOBILE in INDIA

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Tata-Telco, Ashok Leyland, Eicher Motors, Mahindra and Mahindra, and Bajaj dominate heavy vehicles section. The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd.,

Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., and Yamaha etc.

In the initial years after independence, Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis because of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world.

Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income, it is believed that the success story of the Indian automobile industry is not going to end soon.

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COMPANY PROFILE of G.S. AUTO

In 1956, Babba Gurumukh Singh in Ludhiana founded GS Auto. By his professional expertise and commercial and service approach, the company soon became a leader in the automotive components manufacturing field, making truck repair and heavy repair parts. In 1990, Sardar Paramjit Singh (M.D.), an efficient and dynamic manager, founded B.G.S. Auto Pvt. Ltd. With his technical competence, the organization started manufacturing highly compatible universal joints crosses, for trucks, cars, van jeeps etc. to fill the technical gap in the market for the clients' benefit. The organization today is head by his son Sardar Manraj Singh, the proprietor of the company with a positive approach towards the highly competitive International market developing and reconfirming the faith of customer worldwide.

A loyal staff and future-oriented creative management make sure that the enterprise has been able to preserve its excellent reputation internationally. With a rational structure, talented expertise and technical knowledge acquired over the years, the company makes sure that the best of quality output isdelivered.

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They have registered a steep growth in their business and have earned the recognition of being one of the most efficient and reliable manufacturing companies catering to the domestic markets in Punjab, Haryana, Guwahati, Calcutta, Maharashtra, Jammu, Karnataka, Madhya Pradesh., Rajasthan, Gujarat etc. They also cater to the international markets of U.A.E., Iran, Libya, Syria, Germany, America, Russia, Afghanistan, Holland, Malaysia, Kenya, Uganda, Egypt, Nigeria and Australia.

Products:
They are Manufacturer, Traders and Exporter of automotive components such as auto steering parts, jeep steering parts, universal joints etc. 1. Steering Parts: - Auto Steering Parts for cars, vans, jeeps etc. -Steering Assembly Parts for light and heavy commercial vehicles: - Steering Parts for agriculture vehicles and equipment. -Steering Parts for off road commercial vehicles. 2. Universal Joints: - For light & heavy commercial vehicles -With four ground round bearings:With four plain round bearings. -With two welded plates & two plain round bearings. -With four welded plates: - With two ground and two plain round bearings. For agricultural machinery -With outside seal UJ Crosses -UJ Crosses with inside seal 3. UJ Crosses: - For off road / heavy earth moving machinery & vehicles U j Crosses with four wing bearings. U j Crosses with two-wing bearing & two ground bearings:-With two wing bearings and two plain round bearings. U j Crosses with two welded plates and two high wing bearings

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IMPORTAT LANDMARKS
1938: Start business actively 1973: Govt. converted into Pvt. Ltd. Company Gurumukh Sigh & Sons Pvt. Ltd on 29 June. 1985: Renamed as G.S Auto international ltd. on 5 August. 1990: Rayait Exports was established to cater to export market. 1997: ISO 9002 certification in March by BVQI, U.K. 1999: QS 9000 certification I Dec. by BVQI, U.K. 2003: Re-certified QS9000 I June by BVQI, U.K 2005: ISO/TS 16949 certification I April by BVQI, U.K. 2006: a) Commissioning of transfer line (14 station with twin robotic arms) To manufacture spring pins (first its kind in Asia-pacific) b) Formation of GS Automotives Ltd. to manufacture caste components. c) International business tie up with V. Orland of Italy to introduce their.

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d) Establishment of G.S auto comp Ltd. To market Various automotive companies of G.S. group and supporting companies. e) Manufacturing facility at Tata Nagger, Jamshedpur. 2007: Trailer Excels.

G.S AUTO ITERNATIOAL COMPANY LTD. LIST of BOARD of DIRECTORS As on 30th MAY 2009

Chairperson
Sardar Jasbir Singh

MANAGING DIRECTOR
Sardar Surider Singh

DIRECTORS
Ms. Dalbider Kaur Ms. Amarjeet Kaur Mr. Makhan singh Mr. Sewa singh

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PRODUCT RANGE
They specialize in Suspension Components (Machined, Forged and Cast) for Commercial vehicles (LCVs, MCVs and HCVs ) and passenger Cars for various makes/ models of Vehicles: For Indian Market: They have a range of following components for Tata Ashok Leyland Maruti, Swaraj Mazda Hindustan Motors Ltd. VOLVO Mahindra & Mahindra etc. For Overseas markets: They have components for Volvo, Mercedes, Scania, Hino, Peykan and other trailers and trucks. They develop components based on Customer's Specifications and Drawings and provide Designing solutions to our customers for enhanced product performance and improved quality.

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GROUP COMPANIES

1. G.S. Automotive (P) Ltd.:

At G.S. Automotive Limited, a team of 1000 young dedicated technicians work in close cooperation with each other and have succeeded in bringing to our customers these Automotive components, unchallenging in quality and workmanship.

2. G.S. Auto camp (P) Ltd.:

Group Company is manufacturing propeller shafts and suspension components. Also markets auto parts manufactured y other smaller companies of G.S cluster in Indian market.

3. G.S Foods.:
One of the leading companies of northern India established in 1999 dealing in packaged food products.

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SOCIAL CONCERN
1. EDUCATION:Children , the future of our nation, have the right to receive attention and proper nurturing. The human approach of GS is manifested I the activities of education ad social concerns

Its having following institutes: Guru Nanak public school Ramgarhia Girls College Ramgarhia Middle School Ramgarhia Senior Secondary School

2. MEMBERSHIP:GS group participate I the activities of important and international association via Society of Automotive Engineers, USA Confederation of Indian Industry (CII) Engineering Export Promotion Council Auto parts Manufacture Association, Ludhiana Institute of Professional Innovators, Detroit

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DEPARTMENTAL ANALYSIS

1. Production Department
Mr. V.K. Sharma handles the production department, president of plant. Approx 5000 employees are working under him. He has one general manager Mr. Sanghotra and two senior i.e. Mr. Raman and Mr. Ranbir under him. For this Mr. Sharma with help of his senior engineers has designed two machines and working on designing more machinery in order to increase the capacity of plant. Functions: To provide maximum goods as per the demand. To provide quality products to its customers. To update themselves from time to time in order to remain in competition.

2. Personal & Administration Department

Mr. M.S. Mangat, GM, one assistant manager handle Personal & Administration department and five other employees assist him. They check daily attendance of resource by employing the right man at the right place. The workers are treated as family members aspiring to achieve goals of company.

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Functions: To harmonize the relations between the management and workers. To increase the productivity of workers. Development of employees at all levels of the organization through continues training and education A sense of belongings is created among workers, which drives them to excel in their activities and enables G.S Autos to attain new heights.

3. FINANCE and ACCOUNTS DEPARTMENT

Mr. Niraj Tuli heads this department 10 other employees assist him in handling day to day finance of G.S Autos. Earlier company has relied heavily on bank loans and borrowings. In 1992, the company declared a sick unit but now it has turned into financially strong company still there is lot that is to be done in this field. Functions: Procurement of funds, which is done through banks, own generation and timely realization from customers. Proper utilization of funds.

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4. Department Electronic Data Processing

This is one of the most important departments of the company. This department helps in providing the information to all the departments e.g., if marketing department wants to check the sales trend then they can check the sales trend, they can check it either items wise, part wise or city wise. Functions: The main objective of EDP department is to provide service, which all departments require in the area of computerization. They are responsible for implementation of documented quality system in EDP department and provide assistance in troubleshooting. They are responsible for identifying continuous improvement and communicate to concern to HODs.

5. Purchase Department
The purchase department procures all the materials right from pin to vast machinery. Five other employees assist Sr. Basant Singh heads the department. Functions: To ensure purchased material quality. Vendor department evaluation. provide material at right time. To

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6. Marketing Department

Marketing includes all sets of activates necessary to direct and simplify the flow of goods and services from manufacturing to consumers through distribution network. To facilitate all activities Mr. Anadi Sharma heads marketing department. Who is assistance by 10 other employees of department, their main functions to market the company products, providing services to the customers, creating demand for the developed products and discovering and translating consumers needs and desires into products and services.

SWOT Analysis of G.S AUTO

Strengths
All India Presence Brand Pull

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Better organized as compared to competitors

Weaknesses
Fragmented Prices are high as compared to other Manufacture

Opportunities
Growing Market All VMs increasing their Production Difficult Business Environment for SMEs Player

Threats
Load Restrictions New Entrants at Local and Regional Levels Improvement in Vehicles Quality Increasing Prices of Steels Freight Trains Foreign Competition

COMPANY PROFILE OF SHREYANS INDUSTRIES LIMITED

Shreyans Papers, the flagship company of Shreyans Group was incorporated in 1978. The company commenced the commercial production of writing and printing papers in 1982 using agricultural residues with an installed capacity of 10,000 MTs per annum.

SHREYANS PAPER:

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Before 1987, this company was under the management of Vardhman Group. In 1987 under a family settlement, this company was taken over by Mr. D.K Oswal. Subsequent to this, numbers of modernization-cum-expansion schemes were taken up at Ahmedgarh unit and present capacity stands at 45,000 MTs per annum, which existed in 1987. This unit is considered as market leader in agro based paper mills of the country and is one of the most modern plant and machinery set up. This unit has been recipient of Productivity Awards instituted by National Productivity Council for five years. On environmental front this unit was first in Asia to set up a Chemical Recovery Plant suitable for agro based units which was part financed by USAID. This unit meets all the standards as laid down by various environmental laws and is fully compliant.

CAUSTIC RECOVERY:
During 1995, the company implemented a scheme for recovery of caustic soda at an estimate cost of Rs 113 Million. The scheme was to give two-fold benefit Reduce the cost of caustic Lyle Reduce the pollution level of water being discharged from the unit.

The scheme was completed in 1996. The caustic recovery of the company has been operating satisfactorily. The company has been utilizing the caustic recovery facilities for production of soda ash as the company do not possess the required equipment for the extraction of caustic soda from black liquor (by product of the paper pulp making process) & also because, on account of current market conditions, the extraction sale of soda ash is more beneficial than the extraction & captive consumption of caustic soda. The company has been recovering approximately 85% of soda ash & selling the same in the open market.

CO- GENERATION:
Both paper divisions have Co-generation plants attached to them and meet almost 90% of their power requirement through these plants at very economical cost. The total combined capacity of the Company is 78,000 MTs per annum.

COMPANY EXPANSION:
In the meanwhile, encouraged by the experienced gained in paper industry, the company took over a paper division of M/S Zenith Limited (A Ashok Birla Group Company) in February 1994.

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At the time of takeover, the capacity of the unit was 9,000 MTs per annum which has been raised to 33,000 MTs per annum now. Major expansion-cum-modernization project was taken in this unit has been raised the capacity to preset level.

TYPES OF PAPERS:
Shreyans produces different varieties of writing and printing papers for different uses including waste mark papers, super calendar and other varieties of papers for various state Government, Education Boards, Shreyans also produces the inland letter and envelop papers to be used for postal and special papers for railways for their computerized tickets. Keeping in view the market condition, Company has introduced new quality papers named High-Bright Super Printing Papers in Ahmedgarh unit and Crystal paper in Banah unit

Shreyans is always ready to give top-level services to its customers ad is very friendly to environmental to produces a paper without cutting ay tree or bamboo.

MANAGEMENT PROFILE of SIL

BOARD OF DIRECTORS
SH. RAJNEESH OSWAL, Chairman and Managing Director SH. VISHAL OSWAL, Vice Chairman and Managing Director SH. ANIL KUMAR, Executive Director and C.E.O. SH. KUNAL OSWAL SH. A.K. CHAKRABORTY, Additional Director Mr. S.K. SHARMA, Director (Technical)

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DR. (MRS.) H.K. BAL SH. R.C. SINGAL SH. M.L. GUPTA

COMPANY SECRETARY
MR. VIPIN KUMAR BHATIA

BANKERS
STATE BANK OF PATIALA BANK OF INDIA STATE BANK OF MAURITIUS

WORKS
1. SHREYANS PAPERS, AHMEDGARH, DISTT. SANGRUR (PB.) 2. SHREE RISHABH PAPERS, VILLAGE BANAH, DISTT. NAWANSHAHAR (PB.)

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Chapter 2
(Compensation Introduction)

COMPENSATION
Workers' compensation is a form of insurance that provides compensation medical care for employees who injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain." General damages for pain and suffering, and punitive damage for employer negligence, are generally not available in worker compensation plans. Employees' compensation laws are usually a feature of highly developed industrial societies, implemented after long and hard-fought struggles by trade unions. Supporters of such programs believe they improve working conditions and provide an economic safety net for employees.

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Conversely, these programs often criticized for removing or restricting workers' common-law rights (such as suit in tort for negligence) in order to reduce governments' or insurance companies' financial liability. These laws first enacted in Europe and Oceania, with the US following shortly thereafter. With the technological developments taking place at a higher rate, the salary packages are too increasing at a much higher rate. Pay packages in India have witnessed an increase of more than 14% in 2006 over last years salary packages. The compensation package comprises of monetary and non-monetary benefits that includes salary, special allowances, house rent allowance, travel allowance, mobile allowance, employee stock options, club memberships, accommodations, retirement benefits and other benefits. A wage is compensation, usually financial, received by workers in exchange for their labor. Compensation in terms of wages given to workers and compensation in terms of salary is given to employees. Compensation is a monetary benefit given to employees in return for the services provided by them.

Salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of a business, salary can also be viewed as the cost of acquiring HR for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.

Acc. to the national commission on labor :Wages incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration for improvements in the present or targeted results

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Wages and salary administrative affect levels of employee commitment to the organizations large part of the compensation that people receive from work is monetary. Wage and salary administration has increased as industrialized economies have become more complex. In the evolution of economies, the role of financial rewards has grown. Administration of employee compensation is called wage and salary administration. Acc. To S.P. ROBBINS:The term compensation administration or wages and salary administration denotes the process of managing a companys compensation programmed. The goals of compensation administration are too design a cost-effective pay structure that will attract, motivate and retain competent employees Key Features

Determines optimum payout structures with powerful modeling tools Customizes your payout schedules Presents product and revenue analyses Provides firm, branch, and investment professional rankings Provides daily, month-to-date, and year-to-date commissions tracking Captures historical data

Benefits
1.

Gives you a competitive advantage by helping reduce costs while improving investment professional profitability and productivity

2. 3.

Enables you to easily evaluate performance and quickly adjust compensation Facilitates an optimum payout structure.

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AMOUNT OF COMPENSATION:The amount of compensation depends upon:1. The nature of the injury caused by accident 2. The monthly wages of the worker
3. The relevant factors for working out lump sum equivalent of compensation amount as specified

Under this compensation is payable for:1. Death 2. Permanent total disablement 3. Permant partial disablement 4. Temporary disablement

Compensation for death:50*monthly wages* relevant factor for age 20 100 Or Rs. 80,000 which ever is greater Compensation for permanent total disablement 60*monthly wages*relevant factor for age 20 100 Or Rs. 90,000 which ever is greater Compensation for permanent partial disablement 60* monthly wages*relevant factor for age20 40% of 100

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CHAPTER 3
(Review of Literature)

Review of Literature

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STEVE WERNER & STEPHAINE G. WORD (1996) JAMES H. DULEBOHN & STEPHEN E. WERLING (2007)
Past compensation, research has reflected organization character & personnel practices that had an internal rather than an external focus. Internal labor market typically characterized organizational following up until the 1980s. Consequently, compensation research focused on issues related to managing compensation in this type of structure that emphasized areas such as internal equity job evaluation &individual reaction to pay. Recent changes in the environment have resulted in a greater role of external factors, such as external competitiveness on compensation practice. While practitioners today have more of an external focus in compensation system design, present compensation research has not kept pace. In the following paper we argue there is a need to redirect future compensation research to include a consideration of external factors. They review the literature of compensation & compensation related issues within the field of management. After reviewing 6867 articles include 20 top journals over the past 7 years 396 articles were group in 12 categories. Upon synthesis of these articles, we analyze the linkage across these categories & also suggest areas for future research. We conclude with some observation on the current state of compensation research.

MARYLENE GAGNE &JACQUES FOREST (2003)

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Although compensation specialist generally argue for incentives systems that link rewards to performance, self determination theory argues that such contingent rewards can have determinant effects on autonomous motivation. The authors present a model of the motivational effects of compensation system that attempts to reconcile the awards. We replaced a nearly fixed salary academic physician compensation model with decision-based productivity. The base salary system was stratified according to rank & clinical experience. The supplementary pay was linked to electronic patients records & a scheduling database to awards point.

JANIKAN SUPANVANIJ & MARIA GOLATI (2008)

This research based on the performance management & executive compensation. This examines the relation between corporate performance & executive compensation 1994-2005. Its also examines whether the relationship various across industries. Economic value, market value added methods as performance measures results show that the fixed managerial compensation are linked to the firm performance differently there is no evidence related to long term compensation. The form of compensation is also co-related with the firm compensation.

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CHAPTER-4
(Research Methodology)

RESEARCH METHODOLOGY

MEANING OF RESEARCH METHODOLOGY:

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Research is a common parlance refers to a search for knowledge. One can define research as a Scientific Research and a systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. According to Clifford Woody, Research comprises defining an and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data making and researching conclusions and at least carefully testing the conclusions to determine whether they fit the formulating hypothesis.

Objectives of Research
To gain familiarity with new insights. To portray accurately the characteristics of particular individuals, situation to a group. To determine the frequency with which something occurs or with it is associated with something else. To test a hypothesis of a casual relationship between variables.

Research Design:
Research design constitutes the blueprints for the collection, measurement and analysis of data. The design includes an outlay of the researches will do from writing the hypothesis and its operational implications to the final analysis of data.

Need For research design:

Research Design is need because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible as yielding maximum information with minimum expenditure of effort, time & money.

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Data Collection:
The task of data collections begins after a research problem has been defined and research design is made. While declining about the method odd data collection, a researcher should keep in mind two types of data i.e. primary and secondary

Primary Data:
Questionnaire Design: Items are generated based on studying the various aspects in books and magazines and based on personal judgments. A structured questionnaire covering important aspects of compensation, management policies, personal and organizational factors that are responsible for compensation in the organization. Convenient Sample Size: - 80 people Scope of the Study: - G.S Auto Ltd., Ludhiana. and Shreyans Industries Ltd., Ahmedgarh.

Secondary Data: It was collected from books, journals and companys websites.

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CHAPTER-5
(Data Analysis and Interpretation)

Research Work at G.S. Auto Ltd.

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1 Compensation
What type of compensation provided to you by the company? Response Wage salary Incentive plan Fringe benefits TABLE-5.1 Percentage 60% 0% 40%

FIG-5.1 This table and figure shows that out of 80 employees get 60% benefit from wage & salary compensation and 40% fringe benefits. However, the company ever provides them the facility of incentive plans.

2 Fringe Benefit
What type of fringe benefits are provide to you by the company?

39 Fringe benefits Old age pension and retirement Percentage 0%

benefits Travel expenses Bonus for quality and attendance Insurance Medical leave with pay Suggestion reward Universities and trade courses Health benefits 60% 0% 0% 25% 15% 0% 0%

This figure shows that the company provided Travel expenses 60%, Medical leave with pay25%, Suggestion Reward 15%. The company also rovides the benefit of bonus but it provide annually not for quality / Attendance. Medical & health benefits are also provided to those who come under the ESI Act.

3 Time period

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In how much time you receive your compensation? Time period Week Month Yearly On due date TABLE-5.3 Percentage 0% 0% 0% 100%

FIG.5.3

This table and figure shows that out of 80 people employees get their compensation o the due date decided by the government.

4 Payments
Which method is used for your payments? Types Percentage

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Time wage method Piece wage method Balance method TABLE-6.4

50% 50% 0%

FIG-5.4 This table and figure shows that out of 80 employees according to their departments receive their payments. Some departments use TIME WAGE METHOD or some pay according to PIECE WAGE METHOD.

5.5 Compensation

Is compensation fixed or not? Responses Yes No Percentage 100% 0%

42 TABLE-5.5

FIG.5.5

This table and figure shows that out of 80 employees compensation is fixed for all employees. It is according to their salary.

5.6 Incentives
According to you, incentive plans helps to improve in what manner? Responses Work flow Man machine relation Employee-employer relation Team work Minimization absenteeism Percentage 0% 0% 0% 0% 0%

43 All above TABLE-5.6 Incentives FIG.5.6

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% %age of respondance

0%

There are no incentive systems. So they

Series1

do

not

know

about

what

incentives help to improve in.

Minimization absenteeism

Employeeemployer

Work flow

5.7 Incentives

Do you want incentive plans? Responses Yes No

Aspects

Percentage 90% 10% TABLE-6.7

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Incentives

Yes No

FIG.5.7 This table and figure shows that 90% of employees want incentives.

5.8 Satisfaction
Are u Satisfied with your compensation? Response Yes No 100% 0% Percentage

TABLE-5.8

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Sat isfac tion

Yes N o

FIG.5.8 This table and figure shows that satisfied with their compensation. out of 80 employees 100% employees are

5.9 Wage Differential

According to you Wage Differential should be? Response Occupational Differential Inter-area Differential Inter- Firm Differential Inter-Personal Wage Differential TABLE-6.9 Percentage 55% 25% 12% 8%

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W geD re a iffe ntial

8% 1 2% O pa a D ccu tion l ifferen tial I nter-a aD re ifferential 55% 25 % I nter- F D irm ifferentia l I nter-P rso W g e nal a e D ifferen tial

FIG.5.9 This table and employees says figure shows out of 80 employees through my study occupational differential, 25% employees Says 55%

Inter-Area

differential. 12% employees say Inter-Firm differential & 8% employees says InterPersonal differential. However, in OCM mill both Occupational and Inter-Area differential are used.

5.10 Compensation Impact

Do you think the compensation have any impact on the goodwill of the company? Response Yes No Percentage 100% 0% TABLE-5.10

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FIG.5.10 out of 80 employees, 100% of employees says that the compensation always affect on the goodwill of the company.

5.11 Pay to nomination

In case of death, should it be paid to your nominee? Responses Yes No Percentage 100% 0% TABLE-5.11

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Pay to nominee
120% 100% % age of responses 80% 60% 40% 20% 0% Y es No Series 1

FIG.5.11 This table and figure shows that out of 80 employees ,the company provides the compensation to the nominee of the employee after his death.

Research work at Shreyans Industry Ltd.

Table 1

Compensation
What type of compensation provided to you by the company Response Wage and salary Incentive plans Percentage 50% 0%

49 Fringe benefits 50%

This table and figure shows that the company provided 100% facility of wages and salary compensation and fringe benefits to the workers.

Table 2
Fringe Benefits What type of fringe benefits provide to you by the company? Fringe benefits Old age pension and retirement benefits Travel expenses Bonus for quality and attendance Insurance Medical leave with pay Suggestion reward Universities and trade courses Percentage 0% 20% 0% 0% 40% 0% 0%

50 Health benefits 40%

This table and figure shows that company provides just two fringe benefits medical leave with pay and health benefits. These facilities cover all workers those comes under the ESI act.

Table 3
Time period After how much time you get your compensation? Time period Weekly Monthly Yearly On due date Percentage 0% 0% 0% 100%

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This table and figure shows that all the employees receive their compensation on their due date. The central or state government mentions the date.

Table 4 Payments Which method is used for your payments? Types Time wage method Piece wage method Balance method Percentage 40% 60% 0%

52

This table and figure shows that employees according to their departments receive their payments. Some departments use TIME WAGE METHOD or some pay according to PIECE WAGE METHOD.

Table 5

Compensation
Is compensation fixed or not? Responses Yes No Percentage 100% O%

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Compensation fixation

Yes No

This table and figure shows that compensation is fixed for all employees. But its fixed with attendance.

Table 6 Incentives
According to you incentive plans helps to improve in what manner? Responses Work flow Man machine relation Employee-employer relation Team work Minimization absenteeism All above Percentage 0% 0% 0% 0% 0% 0%

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Incentives
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Work flow Employeeemployer Minimization absenteeism

%age of respondance

Series1

Aspects

This table and figure shows that there are no incentive plans in SIL.

Table 7

Incentives
Do you want incentive plans? Responses Yes No Percentage 30% 70%

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Incentives

Yes No

This table and figure shows that 30% workers want incentives but 70% don not want.

Table 8

Satisfaction

Are u Satisfied with your compensation? Response Yes No 80% 20% Percentage

56

This table and figure shows that all workers are satisfied with their compensation.

TABLE 9

Wage Differential
According to you Wage Differential should be? Response Occupational Differential Inter-area Differential Inter- Firm Differential Inter-Personal Wage Differential Percentage 52% 6% 32% 10%

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Wge differential

6%

Occupational Differential Inter-area Differential Inter- Firm Differential 10% Inter-Personal Wage Differential

32% 52%

This table and figure shows that 52% workers think that the occupational differential is the major Wage Differential.

Table 10 Compensation Impact

Do you think the compensation have any impact on the goodwill of the company? Response Yes No Percentage 15% 85%

58

90% 80% 70% 60% 50%

85%

Series1 40% 30% 20% 10% 0% Yes No 15%

This table and figure shows that only 15% workers agree with it that the compensation affect the Goodwill of the company.

Table 11

Pay to nomination
In case of death, should it pay to your nominee? Responses Yes No Percentage 100% 0%

59

This table and figure shows that the company provides the compensation to the nominee of the employee after his death.

OBJECTIVES OF THE RESEARCH To study the compensation system in G.S Auto and Shreyans Industries Ltd. To
study the satisfaction level of employees with regard to compensation system in G.S Auto and

Shreyans Industries Ltd.

To study the importance of incentives plans for workers. To

study the impact of timely and adequate compensation on goodwill of G.S Auto and Shreyans

Industries Ltd.

To study the time gap with regard to receipt of compensation by employees.

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CHAPTER-6

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FINDINGS, LIMITATIONS AND RECOMMENDATIONS

Findings

1. Fringe Benefits and Wage Salary are provided to workers in G.S. Auto and SIL.
2. There are no Incentive plans in G.S. Auto and SIL. 3. Fringe Benefits like Old Age Pension, Retirement benefits and Bonus for Quality &

Attendance and University & Trade Courses are not provided in both the companies.
4. There are no Insurance plans in both companies.

5. Compensation is providing to workers on the due date in both the Companies. 6. All most all the workers in G.S. Auto want Incentives.
7. All are satisfied with their compensation, which puts a positive impact on the Goodwill of

the company.

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8. All the worker want that there compensation should pay to their nominee after death.

Limitations
1. Proper information was not provided regarding the Base Compensation. 2. Respondents Age was concealed.
3. There was biasness among the respondents while filling the questionnaire.

4.

The Supervisors chose the respondents.

5. Respondents were not so interested to fill the questionnaire.

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RECOMMENDATIONS

1. There should be Incentive plans in G.S. Auto and SIL to increase employee Moral. 2. There should be Insurance plans in G.S. Auto ad SIL for the protection of employees. 3. There should be University & Trade Courses for the workers in G.S. Auto. 4. There should be some benefits at the time of Retirement.

5. There should be Bonus for Quality & Absenteeism.

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CHAPTER-7
(Conclusion of Study)

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CONLUSION OF THE STUDY

From my research about Compensation System in both the companies, I conclude that workers in both the companies are satisfied with their compensation. However, there is no Insurance and Incentives given to the workers. Company should provide to workers Insurance Plan and Incentive Plans to increase the moral of the workers. Compensation is provided to workers on a due date which is a good factor for the Goodwill of the companies. There should bonus for quality and University & Trade Courses for the worker`s improvement.

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BIBLIOGRAPHY

1 VSP Rao, Human Resource Management 2 www.compensation related links 3 www.hrmguide.com-HRM related articles, features, links 4 http://www.ocm.in 5 http://www.google.co.in

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QUESTIONAIRRE
Name: Sex: Occupation: 1. What type of compensation provided to you by the company? a) Wage and salary compensation b) Incentive compensation c) Fringe benefits 2. What type of Fringe Benefits provided to you by the company? a) Old age pension and Retirement Benefit. b) Travel expenses c) Bonus for quality & Attendance d) Insurance plan e) Medical pay with leave f) Universities & Trade Course g) Health Benefits 3. After how much time you get your compensation? a) Weekly b) Monthly c) Yearly Age: Marital status:

68 d) On due date 4. Which method is used for payments? a) Time based system b) Piece based system c) Balance Method 5. Is compensation payment fixed or not? a) Yes b) No 6. According to you incentive plans helps to improve in? a) Work flow b) Man-machine relation c) Employee- employer relation d) Team work e) Minimize absenteeism f) All of the above 7. Do you want Incentive plans? a) Yes b) No 8. Are you satisfied with your compensation? a) Yes b) No

69 9. According to you wage differentials may be? a) Occupational differentials b) Inter-term differentials c) Inter-area differentials d) Inter- personal wage differential 10.Do you think the compensation impact on the goodwill of the company? a) Yes b) No 11.In case of death should it to be paid to your nominee or not? a) Yes b) No

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