Professional Documents
Culture Documents
Employees Satisfaction Regarding Payroll System Dhampur Sugar Mills Ltd. Payroll
Employees Satisfaction Regarding Payroll System Dhampur Sugar Mills Ltd. Payroll
ON
Submitted by:
Vishal Kr. Rajput S/o Sh. Ompal Singh Univ.roll.no - 9951614
Submitted to:
Mr. Gulshan Gambhir (H.O.D.)
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 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. LTD.
(ANKITA VERMA)
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 socioeconomic 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
5
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
TABLE OF CONTENTS
CHAPTER 1:
1.
PAGE NO.
10-45
44-56
57-57
58-61
70-73
CHAPTER 7: 7. SUGGESTIONS CHAPTER 8: 8. CONCLUSION BIBLOGRAPHY ANNEXURE 77-77 78-79 80-87 74-76
1. INTRODUCTION
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.
11
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,
12
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.
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.
13
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
Contractual labor
14
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
15
Supervisory labour 8 medical leaves 7 casual leaves leaves 30 earnleaves leaves 15 earn 6 casual leaves 10 medical
1. Seasonal medical leave casual leave 1 earns leave if work in 20 days in a month by worker.
2.
3. Substitute(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.
5.
17
4. Clerk 50%
19
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.
20
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
21
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
2.Indirect compensation
22
Conveyance
Organizations provide for cab facilities to their employees. Few organizations . also provide vehicles and petrol allowances to their employees to motivate them
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 healthinsurances 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 months salary of the employee.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance,
24
club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.
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
25
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
26
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.
27
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 weightage 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
28
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.
(b) Riotous or violent behavior while on the premises of the establishment; or (c) Theft, misappropriation or sabotage of any property of the establishment.
29
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.]
30
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.]
31
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
32
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
33
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.
34
35
36
Overall emphasis in the activities of the inspectorates is to contain the accident rates and the number of accidents at the ports
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.
37
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.
38
39
and
managerial
empowerment are most able, and willing, to deliver the results that customers expect (Employee Satisfaction,2005)
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 systems de salaire fixe ne soient pas disponibles. Dans notre travail, les donnees sont dans la mesure du possible presentees par systems 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 rsultats 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 remuneration
41
LUMP-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 bonusrelated items are more 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.
42
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.
between 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 provide
a 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.
44
45
Dhampur Today
46
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 industrys 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 cogeneration capacity was one of the largest in the country and it has perhaps the highest ethanol manufacturing capacity relative to its cane crushing capacity, in the country. It is also the first and the largest producer of refined sulphurless sugar in the country.
47
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.
48
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
49
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 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 To optimize the value of stakeholder investments with a To diversify and protect the bottom-line during industry To attain the highest level of accountability, corporate country through co-generation and
continuous R&D. continuous improvement in financial performance. downturn. governance and shareholder value.
50
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
51
52
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 lan 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.
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.
54
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
55
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 its 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,
56
57
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 its 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.
58
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.
other payments.
59
60
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.
61
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)
3)
SAMPLE SIZE
The sample size under taken by me to conduct the survey was 100 employees.
62
data as my main focus concerned there because its 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)
7)
SAMPLE TECHNIQUES
Random
8)
64
1) Preferable feature by workers or employees (%) Features Salary package employees (%) 50
65
30 12 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) Employees participation (%) in decision making Involvement More involvement Employees participation (%) 18
66
32 28 22
35 30 25 20 15 10 5 0
32 18
28 22 S erie s 1 S erie s 2
More involvement
Normal involvement
less involvement
No involvement
67
Thus this means that different employees have different point of view. 3) Employees satisfaction towards salary package Satisfaction level Employees Satisfaction (%)
68
69
Not aware
Aware
Partial
70 60 50 40 30 20 10 0
42
40 18
Employees(%) Yes No 80 20
No
20
Yes
80
20
40
60
80
70
Likert Scaling
Are you satisfied with the Salary package that you have got? Satisfaction level Employee Satisfaction (%)
Employees satisfaction
14
29
71
The 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
3 Satisfied
2 average satisfied
1 less
72
Here the score is 237 that lies between 200 & 300, So the employees are satisfied with the salary package of the organisation
73
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. The Dhampur group power co-generation capacity of 125 MW of power from renewable resources which do not contribute to greenhouse gasses.
2.
3.
The Dhampur Group directed the industrys 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
74
manufacturing capacity relative to its 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 ecofriendly
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
75
workers also fixed by government then factory have to obey the rules and they comes under loss.
7. SUGGESTIONS
76
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.
HEALTHY ENVIRONMENT
Healthy environment should be provide to workers by which employees feels better and they will contribute more to dhampur sugar mills.
77
ORGANISATION
Involvement of employees will ensure that they fully understand the objective and mechanism of the plan.
78
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.
79
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
80
BIBLIOGRAPHY
Referred Websites
o o o o o o
Referred 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
81
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.
82
6. Marget Williams (1961), Benefit System and Benefit Level Satisfaction Wiley, New York, NY,
ANNEXTURE
83
QUESTIONNAIRE
Workers Satisfaction Regarding salary package, compensation,bonus etc. A case study of Dhampur sugar mills ltd
: : : :
Occupation :
________________________________Ph.________
84
incentive plans
3. Are you satisfied with the salary package that you have got?
Highly satisfied Average Satisfied Less satisfied
85
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.
86
Necessary particulars relating to my appointment in the establishment are given in the statement below.
STATEMENT
Name of full Address of full Department/Branch/Section where last employed Post held with Ticket No. or Serial No., if any Date of appointment Date and cause of termination of service Total period of service Amount of wages last drown Amount of gratuity claimed Kind of employment I was rendered totally disabled as a result of (here give the details of the nature of disease of accident) The evidence/witness in support of my total disablement are as follows (here give details) As the amount of gratuity payable is less then rupees one thousand, I shall request you to arrange for payment of the sum due to me by postal Money Order at the address mentioned above
87
after deducting postal money order at the address mentioned above after deducting postal money order commission there from. Place: faithfully, Date: impression Of the applicant employee signature/thumb yours
FORMJ
[See Sub Rule (2) of Rule 7]
88
(Name of the employee) who was an employee of establishment and died on the The gratuity is payable on account of the death of the aforesaid employee while in service .I superannuation of the aforesaid employee on . After completion of .. Years of service total disablement of the aforesaid employee due to accident or disease while in service with effect from the necessary particulars relating to my claim are give in the statement below:
STATEMENT
1. Name of Applicant Nominee 2. Address in full of the Applicant nominee. 3. Martial status of the Applicant nominee. Unmarried / married / widow / widower. 4. Name in full of the employee. 5. Marital status of employee. 6. Relationship of the nominee with the employee. 7. Total period of service of the employee.
8.
89
Department / Branch / Section where the employee last Post last held by the employee with ticket No or Serial Total wages last drawn by the employee. Date of death and evidence/ witness as proof of death of Reference No. of recorded nomination , if available. Total gratuity payable to the employee. Share of gratuity claimed. Kind of employment. 1. I declare that the particulars mentioned in the above statement are true and correct to the best of my knowledge and belief. 2. Payment may please be made in / crossed or open bank cheque. 3. As the amount payable is less than rupees one thousand I shall request you to arrange for payment of the sum due to me by postal money order at the address mentioned above after deducting postal money order commission there from.
the employee.
90
Place Faithfully,
Yours Signature/Thumb
91